Money Management Professionals

If you watch evening TV for more than an hour, you will see an advertisement for a money management consultant.  Obviously, these ads focus on planning for retirement and other major life events.  As a result, they discuss college, illness, changing marital status and natural disasters.  So, what is the definition of how a Money Management Professional?

Forbes.com defines a money management professional as  someone “ …..  who is paid to provide investment advice and management to their clients at a flat fee or % of assets they manage.”   Generally, the professional is an individual contractor or an employee of an investment firm.   However, it is important that a financial advisor be a fiduciary. A fiduciary is a money manager who can buy and sell through your account with consent.  In addition, the fiduciary works solely for the investor.  Of course, there are pros and cons to have any financial advisor.

Pros

• They help with complex financial situations
• Money managers constantly monitor funds for the best return
• They Invest through an overall investment plan
• The professional is familiar with trends and prices

Cons

• There is always a fee for service.
• The investor does not control of investment decisions.
• Investment is always a risk

Types of Money Management Advisors

Customer Service Rep.

This professional works for a bank or other financial business.  As a result, they offer advice on one time transactions like opening a checking account or securing a loan.  Although, their advice is free, they limited it to their area of responsibility.

Banker

A banker can advise and access several different kinds of investment accounts including IRAs, Guaranteed Income Certificates and Government bonds.  Although there is no cost for a bankers services, they can only offer their banks investment products.

Mutual Fund Broker

These people work for a mutual fund group.  In fact, they deal only in mutual funds.  Their services are free.  Usually, the group builds a fee for service into the cost of your mutual fund purchase.

Stock Broker

This person helps identify and buy stocks, bonds and mutual funds.  Because they are registered employees of brokerage firms, they earn commissions on the financial products they sell.

Investment Advisor

These people administer  investment portfolios.  They work for a company registered to administer portfolios.   So, the company usually charges a flat rate for each transaction.  All of their clients are able to invest at least $250,00.

Financial Planner

This person advises on invests, saving strategies, retire funds or any other kind of financial matter that affects someone’s finances.  Fortunately, the state licenses these planners.  However, financial planners have independent fee structures for the overall services that they provided.

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