Should You Hire a Money Manager Now?

Should You Hire a Money Manager Now?

YW0401Managing your finances can be overwhelming, time consuming, and frustrating. It’s easy to think you’ve got a handle on things or have become so confused that you’re willing to let your financial portfolio do its own thing. Fortunately, there are plenty of experts in the field of finance and investment eager to help you get back on track.

If your portfolio fails to meet your expectations or the average of the particular market, it may be time to hire a money manager. If your portfolio isn’t hitting benchmarks established by the industry, it isn’t doing any favors for you. Retirement savings often fall into this category because of variable interest rates. Money managers can run the numbers and get a better plan in place so that you’re able to meet your goals.

It is also important to think about what kind of investor you are when evaluating whether or not you should hire a money manager. If your investment style is more hands off, it is probably a good idea. If you have a lot of time to spend on your investments (and if they’re interesting to you), maybe you won’t need it.

Another reason many people elect to hire a money manager is that they’re simply not able to stay disciplined with their finances. If you, like many, aren’t great at saving, a money manager can be a huge help. These professionals can also be helpful in setting financial and investment goals, paying bills, and establishing a disciplined routine.

If you’ve decided that a money manager is the way to go for you, there are a couple of things to think about. You’ll need to look closely at both fees and performance. Fees are generally established based on how a manager is performing—by outperforming the market, they’ll be entitled to a higher paycheck. Be careful—these fees can really add up and decrease the amount of money you make. Jason Hartman recommends closely evaluating the value of a service before signing up for it.

It is important for you to implement a financial system that works to help you establish, maintain, and set new money goals. If a money manager can be part of making this happen, then go for it! Otherwise, be prepared to spend some time learning these things yourself (a good idea no matter what) and build wealth. (photo credit: Ulf Bodin via photopin cc)

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The Young Wealth Team