Engaging in asset management is necessary for analyzing the strengths and weaknesses of investment products to minimize risks and financial losses. The level of management required depends upon the type and value of investments within the portfolio.
There are several approaches to asset management. Some people prefer to use portfolio management software, while others hire a portfolio manager or company. Software programs track and monitor the performance of stocks, bonds, commodities, global investments, real estate investments, and other financial products.
Asset managers offer consulting services, buy and sell investment products, and monitor performance of investment products. Managers can help you create a diversified portfolio and offer advice on when to buy, sell, or trade to achieve the right mix of asset allocation.
Hiring an asset management manager doesn’t mean you should leave things on autopilot. Instead, it’s important to play an active role in checking up on stocks, bonds, and mutual funds. The same holds true if using portfolio management software. Be certain to download software updates to accurately track market indexes and rating changes.
Regardless if you oversee portfolio performance or hire someone else, it’s important to establish asset protection strategies. People often feel this is only necessary for business owners, professionals, and the wealthy, but the truth is anyone with financial assets needs to take steps for protection against lawsuits.
A staggering statistic is about 50,000 people are sued every day. Even if you carry adequate insurance it might not be enough. If monetary awards exceed liability coverage, lawyers can go after personal and business assets; potentially leaving you penniless.
Another consideration of portfolio management is establishing estate planning methods to transfer financial investments to beneficiaries. Estate planners can advise whether estate protection bonds are needed or help establish joint tenancy with right of survivorship to transfer ownership of bonds.
Estate planning goes hand-in-hand with developing a retirement plan. Investment portfolios are a necessary part of retirement planning. Making smart investment decisions today can provide wealth for your golden years which can eventually be passed along to heirs.
Getting to that point requires careful management of financial portfolios and choosing the best products for your unique situation. While hiring an asset manager is more costly than using software programs, it’s a good option for people new to investing and unfamiliar with wealth management strategies.
The secret to successful asset management is figuring out which system is best suited for your needs and establishing a clear investment plan. The first step involves identifying your personal financial goals and the objectives for investing. The second step is determining the time frame in which you want to reach your goals. Understanding why and when will narrow down the choices of investment products that will deliver the results you are seeking.
Keep things simple and straightforward when developing investment strategies. Leave room for flexibility so if there is need to change things later on the transactions can be performed easily.
At Craton, Switzer and Tokar, we specialize in asset management strategies to help clients reach their short and long term goals through effective investing practices. We also offer retirement planning, estate planning, and asset protection to safeguard assets so funds can be passed along to future generations.
We offer informative articles to help visitors learn about asset management basics, wealth building strategies, and ways to protect assets in our estate planning blog. Feel free to browse around or give us a call to discuss your investment goals.