Is it time to hire an equity portfolio manager?

Many people prefer to manage their finances on their own as the data becomes more and more accessible with various online brokers, and low fee market index funds. By that, people can save more advisor fees, be free to make their own decisions, and track their finances efficiently. 

However, some may find it challenging to understand the complex macroeconomic environment and the consequences of investing in various assets. Which is why there are equity portfolio managers to help you make smart decisions.

Before hiring a professional to provide investment advice and management to their client, you should ask yourself several questions. You should identify your needs and consider all the pros and cons of hiring a portfolio manager. 

Your finances are too complex to manage on your own

First of all, managing your portfolio all by yourself most probably will not beat that of a professional. You may not take into account all market fluctuations resulting in poor budget allocation. In the worst-case scenario, you might lose a lot of money in case of investing in the wrong assets. If you think your finances are too complicated and you need external help, you should definitely consider hiring an equity portfolio manager.

How much money will you be investing

Another factor to consider while thinking about hiring a portfolio manager is how much money you are willing to invest. With more wealth, the investment options become more complicated and confusing if you do not have enough financial management knowledge. If you have a portfolio manager, s(he) will be the one to handle it.  On the other hand, if you have a small portfolio and a simple investment strategy, you may think that hiring an equity portfolio manager is a waste of money. All in all, it is strongly recommended to ask for advice from a professional to avoid additional investment fees, charges, and complex financial matters.

Do you need a comprehensive financial strategy?

One of the most critical aspects for consideration before hiring equity portfolio managers is whether you need comprehensive financial planning or not. If you do not want to plan your future finances instead focus on one-off investments (i.e., purchase a car, buy a house, etc.), then probably you do not need a portfolio manager as well. On the other hand, if you think of a comprehensive investment strategy and consider investing in different assets, the portfolio manager can help you make smart financial choices. With current market options, you may find it challenging to determine the costs and benefits of investments you are about to make. A knowledgeable and trustworthy portfolio manager will help you understand where you are investing and whether it would be financially advantageous for your future or not.

Overall, take into consideration that hiring an equity portfolio manager is a serious step for your future. What are your expectations of your portfolio manager? That is the first and foremost question you should ask yourself before hiring one. Do not expect your money to double overnight because you will be disappointed. Instead, an excellent professional will ensure your steady financial growth over a more extended period of time. 


February 4, 2020

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