investing portfolio management advisor role

How to Pick the Right Advisor to Manage Your Portfolio

by Al Meadows

Effective wealth managers are precious commodities, worth their weight in gold. Why? Because they can take a lot of the guesswork and day-to-day upkeep of protecting and growing a portfolio off of your plate. Nearly all high-achieving, professional-level sports players and business leaders have mission-driven coaches, trainers and assistants — and it is useful to think of financial advisors in the same way, as they can complement any blind spots you might have in investing. Further, they augment your strengths with high-level strategies, real-time market data and extra focus on your customized long-term investment objectives. During times of significant market volatility, a veteran portfolio manager can be invaluable to you, reminding you to stay the course and executing previously co-designed investment strategies to keep your portfolio in balance in accordance with your goals and tolerance for risk.

Managing your investments can be intimidating. Your overarching financial goals have very real and lasting consequences. You, your family and potentially successive generations will literally depend on the choices you make or have made. Professional, trusted and seasoned portfolio managers can help you leverage investing strategies for a modern age.

Why Go Pro?

According to research completed by the FINRA Investor Education Foundation and NORC at the University of Chicago, investment knowledge among individuals who opened investment accounts is low across the board. This is especially true for investors, as the study found on average, new investors could only answer 1.4 out of 5 investment knowledge questions correctly. 

Further, according to a paper on how financial attitude impacts the trading activity of retail investors during the COVID-19 pandemic, “Retail investors are influenced by several rational and irrational factors while making decisions related to where and when to invest… Scholars have thus recognized that psychological factors play a key role in shaping individuals’ financial behavior and have emphasized the importance of examining these factors extensively.” These are just a couple, albeit compelling, reasons to strongly consider a trusted wealth advisor group for that added investing know-how that most people lack.

What Services Do Wealth Advisors Provide?

Portfolio managers provide several key financial services. Wealth managers work closely with their clients to exceed long-term financial objectives, mitigate risks and help forecast through life events. They make recommendations and use a multitude of strategies and techniques to create a balanced portfolio for their clients. Some portfolio services include:

  • Investment portfolio management
  • Construction of a custom, balanced and diversified portfolio
  • Financial planning
  • Tax services
  • Retirement planning
  • Legal planning
  • Philanthropic planning
  • College (for children or grandchildren) planning
  • Estate planning

High-net-worth individuals are likely to have more complicated financial situations. Consequently, portfolio manager teams are very beneficial because they bring specialty knowledge in several and varying areas of personal finance, such as those just mentioned above. Experienced wealth advisory groups can coordinate generally disparate professionals already working with you including your CPA, banker, estate attorney, insurance agent, business consultant, mortgage broker, real estate agent and business partners to ensure everyone is working towards the same goal. They can serve as your personal wealth advocate to make sure vital information is shared among your advisors so you get coordinated advice faster, more effectively and without redundancy.

Strong financial advisor teams often have creative solutions that meet the needs of those with significant wealth. They provide you with customized and comprehensive advice, handcrafted to your goals and risk tolerance

How to Choose the Best Wealth Advisor for You

Many top-shelf wealth managers have recurring traits and will have a track record demonstrating outstanding skills in:

  • Forecasting. A high-performing wealth advisory team will customize your portfolio to your long-term needs, upcoming life events and financial goals. 
  • Aligned interest (no conflicts of interest). Great advice is honest advice. Portfolios constructed when there are inherent misalignments between the goals of the client and the goals of the advisor can lead to higher risks and lower rewards.
  •  Speed. At times, the financial markets can move on a dime. You need to be updated in real time and have a previously designed plan in place to be able to execute quickly in order to capitalize on or defend from market turbulence.
  • A Stable of Specialists. Each financial topic requires a depth of knowledge that makes it much more efficient to have specialist teams versus one or two generalists.

Look for a Fiduciary 

Fiduciary financial advisors have an obligation to put your best interests above their own. This means they aren’t allowed to make commissions from the sale of any investment and typically work on a fee-based system. This flat fee paid is generally paid monthly or annually. Any fees charged are paid separately and not taken out of your investment balances or trade proceeds. 

This natural alignment is generally better for investors because it removes any potential conflicts of interest when investing. 

Final Thoughts

Your portfolio is a catchall word that encompasses a staggering number of subjects. It’s vital to have a team of specialists in place working on your behalf to help you achieve your financial goals in any market conditions. No matter your stage in the wealth cycle, our wealth advisors can add serious value to the process of creating a balanced and well-diversified portfolio as well as aiming to enhance your overarching financial well-being. Contact Us.


The Importance of the Traditional Financial Advisor — US News

Investing 2020: New Accounts and the People Who Opened Them —

Has financial attitude impacted the trading activity of retail investors during the COVID-19 pandemic? — ScienceDirect

2019 RIA Industry Study: Total Average Fee is 1.17% —

What Is a Financial Advisor? – Forbes Advisor