What is Managed Money?
June 28th, 2008 | by Editor |Has your financial advisor talked with you about managed money or wrap accounts? Here is a few basic details on these money management products.
Also known as “wrap” accounts, managed money is a product offering a range of services “wrapped” in a single fee. Once limited to institutional investors and ultra-high net-worth individual investors, managed money has broadened to a wider market.
Managed money accounts changed the way advisors were traditionally paid. Older models saw advisors get transaction-based fees, meaning they were not paid for advice they offered, only the buying and selling that they did for clients. With managed money accounts, advisors not only complete transactions but also provide complete financial planning advice. With managed-money products, advisors are paid a flat fee based on the assets under management, regardless of the number of transactions. Because the advisor is paid based on a percentage of assets under management, s/he has a personal stake in the success of your portfolio.
Fee-based products provide the benefit of ongoing consultation with a professional financial advisor in exchange for a predictable fee. The advisor is responsible for managing your financial plan, which includes examining your overall financial situation, determining your risk tolerance, helping you set goals, recommending an asset allocation that is appropriate for your goals, assisting with investment selection and monitoring your portfolio and the progress toward your goals.
Managed money offers a degree of tax efficiency, flexibility, convenience and peace of mind that few other investment options can provide. These features have made fee-based investing and managed-money investment vehicles quite popular among affluent, tax-sensitive investors. Depending on the type of account, managed money can also offer significant style and asset diversification benefits.
Managed money provides the benefit of ongoing consultation with a financial advisor in exchange for a predictable fee.
Related Article:
- Benefits of managed money and wrap accounts.
4 Responses to “What is Managed Money?”
By John Clark on Jul 19, 2010 | Reply
financial is very important if you want to succed in business.,-*
By Detox Diet ` on Oct 11, 2010 | Reply
financial planning is really needed if you want to be successful in your endeavors in business-*,
By Metal Cabinets : on Oct 22, 2010 | Reply
financial planning is needed if you want to keep track of your investments and expenses~,.
By Nicotinic Acid on Dec 13, 2010 | Reply
in business, proper financial planning is very essential and it can make or break a business ;*-