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How much preparation is involved when managing someone's investments?
I'd love to learn more about the work that goes into the account management for an investment manager. What exactly does that prep work entail? How many accounts do you manage at one time? #finance #financial-services #investment-management #investing
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Steve Lewis
Assistant Vice President, Cybersecurity Team Lead & Technical Product Owner | Technical Lead | Public Speaker
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Steve’s Answer
The first step is to complete all of the required education and licensing. Based on what you want to do, there are different legal requirements before you can be a money manager.
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Joseph’s Answer
This is a common question for those entering the field of investment advisory, and the truth is "it depends." There are several different facets of investment management and with these different ranges come different requirements. However, there are some common themes that will emerge across all levels of investment management; here are 2 big ones:
1) Suitability is a huge consideration for any investment recommendation; it is your responsibility to listen to the needs and aspirations of your client before deciding which investments to research and present as options to meet their objectives.
2) Preparation: you should always have more information prepared than you may be able to present - your value as a trusted advisor will come not only on what paths you lead the discussion down, but also on what answers you have to questions from those you are advising. This involves fact-finding, analysis, modeling, and presentation preparation.
Depending on the path you pursue, you could be managing anywhere from one to hundreds (or possibly more) accounts. Regardless of that amount, you should always remain committed to ongoing analysis and conversation with your client(s) about objectives, risks, and their financial situation and keep the clients updated on how the strategies did or continue to meet their needs; an informed investor will be your best client regardless of market situations (which are largely uncontrollable at a broad level).
1) Suitability is a huge consideration for any investment recommendation; it is your responsibility to listen to the needs and aspirations of your client before deciding which investments to research and present as options to meet their objectives.
2) Preparation: you should always have more information prepared than you may be able to present - your value as a trusted advisor will come not only on what paths you lead the discussion down, but also on what answers you have to questions from those you are advising. This involves fact-finding, analysis, modeling, and presentation preparation.
Depending on the path you pursue, you could be managing anywhere from one to hundreds (or possibly more) accounts. Regardless of that amount, you should always remain committed to ongoing analysis and conversation with your client(s) about objectives, risks, and their financial situation and keep the clients updated on how the strategies did or continue to meet their needs; an informed investor will be your best client regardless of market situations (which are largely uncontrollable at a broad level).
Updated
Michael’s Answer
A few ways to answer this question;
1) To build trust with someone to have them manage their money is a tall order. They will want to know that you are personally dedicated to your profession and are an expert in your field. First impressions will be very important. They will want to know about successes that you have had historically.
2) As a general rule of thumb, the more time you spend on something, the better you will be at it. The same goes for investing. There is no way to know everything about finance, but those that are willing to roll up their sleeves will on average have a better chance of success.
3) Your passion needs to be genuine or else it will feel like work.
1) To build trust with someone to have them manage their money is a tall order. They will want to know that you are personally dedicated to your profession and are an expert in your field. First impressions will be very important. They will want to know about successes that you have had historically.
2) As a general rule of thumb, the more time you spend on something, the better you will be at it. The same goes for investing. There is no way to know everything about finance, but those that are willing to roll up their sleeves will on average have a better chance of success.
3) Your passion needs to be genuine or else it will feel like work.
Updated
Gerard’s Answer
When working with clients to guide and plan for their financial future it is important to gather as much information as possible. It is important to determine the amount of risk a client can support. There are independent plans that can be used to help measure the risk. Once determined, you will need to have an inventory of investments that you will need to monitor. Portfolios should be diversified to cover the different market segments. Initially it takes time. Once the structure is in place, time is reduces since you will have a process to follow for each client dependent on their risk.