Benefits of Managed Money Accounts
June 28th, 2008 | by Editor |Has your financial advisor talked with you about managed money accounts? Many Certified Financial Planners swear by this type of money management for the reasons listed below.
These are the primary benefits of managed money accounts:
External investment consultants: Your investments are guided by independent consultants dedicated to finding and overseeing the best money managers.
Institutional managers: Managed money provides access to private money managers that were once exclusive to the ultra-wealthy. These include top-performing managers who maintain a strong focus on preservation of capital.
Asset allocation and rebalancing: You can set the correct asset mix for your risk tolerance and make sure it gets rebalanced regularly.
Risk-adjusted performance: Through the features listed above, you can achieve superior performance with minimal risk.
Reporting: Consolidated, easy-to-understand reports show your net invested amount with the current market value plus percentage rates of return over the entire period of investment. These rates of return are also compared to corresponding benchmark markets.
Lower Fees: Managed money fees are usually lower then mutual funds. You can deduct most of the management expense ratio (MER) from non-registered accounts against your income.