Investing in the stock market is difficult to say the least and it is increasingly difficult over time. Heck, most of the investment banking houses filled hire entire divisions of mathematicians and theoretical physicists … theoretical physicists! How I can expect to manage my finances and invest in the stock market with any degree of certainty when I go against the theoretical and mathematical physicists ?One answer to this problem is to simply hire a money manager and if you have substantial assets at least $ 250,000 – $ 500,000 or more, then it may make sense for you. But most people do not know what to expect when it comes to hiring a money manager and that’s exactly what I’ll talk about in this article today. First, what exactly should you expect to have to pay a money manager ? Usually, you will be charged an annual fee may not exceed 1.5% of the value of its equity investments under management. Most managers and financial advisors also charge you a minimal fee of about $ 1,000 per year and that makes sense because there are simple administrative expenses have to be covered , such as printing reports and document management and payment of secretaries to answer your phone calls to them etc.
The good news is that fees will usually be on a sliding scale that decreases with increasing investment. So the more money you invest the cheaper it becomes to pay your financial adviser. What kind of service you should expect from your financial advisor ? Well they all differ, but you can expect these basic most money managers . You should at least receive quarterly reports that explain how well your investments are doing . You should also expect to talk with your financial investment advisor at least once a year , preferably once a quarter .
A financial adviser is someone to call and talk often because many times these guys have 50 to 100 different customers , and they simply do not have the time to talk with each of them on a daily or even weekly basis. Once or twice a year is normal and , in fact, that’s what you need to discuss with the new year and the changes to be made to your investment strategy or financial situation . Also, when first your account can be expected to meet with the designated coordinator of creating a basic financial plan that is highly adapted to their needs. Most consultants will not create custom plans for each client because they have too many customers (unless you give them significant amounts of money as several million dollars), instead of his signature created several financial plans that relate to several different general categories of people and I hope that you’ll fall into one of these categories and you are just going to use one of those financial plans of the template so that under most circumstances. You can expect to have all this explained to you during your initial meeting when setting up your account.