Setting out to find someone who can help you invest your money can oftentimes be nerve-wracking. After all, this person will be handling your finances and in a way will be holding your life in his hands. This is especially true with people who are about to retire and have no other means of income but the money that they have saved over the years. But no matter how frightening it can be, the fact is, you need asset management in your life if you want to remain problem-free for your entire life.
You see, the money kept in the bank is not enough to finance a comfortable retirement. With such a measly interest, all it can give you is small change that can perhaps last you 3 months when you donít have other income. Inflation rates and the rising cost of living are enough to knock down the value of your money in the future.
But finding a good asset management program and personnel is not always the trial that people say it is. When done right, you can actually get yourself a good deal with a trustworthy manager who will help you triple or quadruple your assets. Here are some tips that can help you.
1. Shop for it
Do not just settle for the first one that you see. Look around and compare notes. Get as many as you can and then choose from the line up. That way, you will not be pressured to take one program or hire one person even if you donít really trust it or believe in it.
Looking for a good asset management program is like shopping for a doctor when you have a terminal illness. Think that you are looking for someone who can save your life. And when you come and think about it, finding a good one is actually kind of like saving one’s life. After all, your entire future will depend on the performance of this one person and the effectiveness of the program.
2. Ask around
One way to find a good asset management program is to ask people about it. Believe it or not, it is that simple. You see people who have also gone through the same motions will know where to look and will even have tips on how to look.
You can also ask for recommendations. Have them give you the number of the asset management manager that they hired. Start with your friends and families. They will surely know people who they can refer to you. If you know successful people in business or those whose financial portfolio you admire, go right ahead and ask them for referrals. Their asset manager should be really good.
Once you get their contact numbers, call them. Ask about the personís accomplishments and track record as well as the number of years that he or she is working for your acquaintance. Set up and appointment and get to know the guy (or gal) in person. That way, you can see for yourself what his personality and attitude is in business. Do the same thing with other referrals and then choose the best.
3. Never trust completely
Never put your trust in one person even if he comes with great recommendations. Even if you have hired him or her already, still take an active part in the management of your assets. It is good that you also know what is going on with your money.
4. A basic idea
No investor can afford to lose any amount of their principle. ROI (return On Investment) can vary and should never be zero but any investment that puts your principle at risk is a bad one for “The little guy (or gal).” “The big guys” can afford to do the “High Risk, High Gain (or Bigtime Loss)” type of investing (gambling) because they have the wealth to do so. If you are a “little guy”, stay away from that game.
5. General guideline
In looking for asset management, you might be able to find an individual manager who is a genius, completely honest, is devoid of self interest and is extremely lucky. The odds on this are about the same as those for pigs acquiring flight ability. So a general rule is, the bigger the company you have managing your assets, the safer they will be. The smaller, the more risk you will incur.
An actual case in point was a small brokerage firm that had invested their own money in an international monetary fund. They had their account managers call their clients and recommend they get into this fund. For every dollar a client put in, they could take one of their own out. When the fund crashed, investors lost a good percentage of their principle but the brokerage firm had already gotten themselves out at the high point.
