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Do You Trust Your Asset Manager?

Updated: Apr 23

One of the most important qualities in your relationship with your asset manager is, do you trust him/her? In practical terms, trust is felt and experienced. We extend trust without being aware of it. We trust our family, our doctors and our accountants. We trust the other drivers who we share the road with. We trust the drivers of the cars coming at us at 55 mph, are going to stay in their lane. Otherwise we could have an accident or end up in the ditch in an attempt to avoid a collision. We learn to trust the "rules of the road" otherwise driving would be so stressful it would be unworkable. Driving would be chaotic and dangerous.

It is the adoption of a common set of "rules and values" which makes driving workable and safe. The same is true of your relationship with your asset manager.

Asset Manager Relationship Tip (Explore Their Values & Rules)

You have to trust that your asset manager is going to obey a set of “rules” when it comes to managing your assets. You want to feel assured they won't cause an accident. Nor that you’ll end up in a financial ditch wondering, "What just happened?"

We think it is crucial to examine your asset managers values and philosophy. To select a quality asset manager, make sure their values align with yours. Here are a few questions you could use to get the conversation started with your asset manager:

  1. How would you describe your approach to managing my money?

  2. What are the principles, values and standards you use?

  3. What did you learn in the last financial crisis?

  4. How have your business practices changed since the last financial crisis?

  5. What is the difference between your most successful clients and those struggling?

  6. In your opinion, what do you think is the most important thing you do for your clients?

Make notes of their answers. Then take the time to reflect upon them. It will help you get a sense if they are in alignment with your needs. If so, then you are in a great place and can rest easier. The likelihood of experiencing a financial accident is pretty remote. This doesn't mean you can ”set it and forget it.” What it does mean is that you will have someone to support you when needed.

Your Asset Manager Should Be Your First Resource to Talk To When Things Change (And They Will) At some point over the decades of your retirement something is bound to happen to upset you. Either the economy softens or the markets take a hit. You are going to feel like you’ve been kicked in the gut. This is exactly when you need to talk with your asset manager. He/she will help provide you with perspective. Reason with you and help talk you off the ledge of “selling it all” at a time when it could hurt you the most.

Everyone experiences a few surprise financial potholes or speed bumps in their lifetime. With the right asset manager you can rest easier knowing you are on the same page with your asset manager. This means you can have quality conversations. You can discuss your feelings, concerns or the latest financial news. You will be able to discuss what’s going on and any changes since you last spoke. Together you will assess priorities and arrive at a better plan of action, together.

Remember, this is your money, not the asset managers. If you are not comfortable with them now, it will not likely improve in the future. Make sure to ask questions and seek clarification. Your asset manager should welcome your inquiries and be 100% transparent.

We cannot overstate the importance of the “feel good“ factor. With the right asset manager it will be effortless to discuss uncomfortable topics. When you feel that things need to change, speak up. Remember, in the end you are the one who has to live with the results. The right relationship with your asset manager might pave the way to an easy retirement.

Just remember, the first step to enjoying your golden years is hiring an asset manager. People managing their assets themselves often end up sacrificing their financial goals by making common, avoidable mistakes. If you want an easier retirement, with less worry about these mistakes, register for and watch our masterclass titled Retirement Made Easy-4 Steps to Create Financial Peace of Mind.

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