Does your advisor actually manage your money?

Published: Thursday, December 19, 2013 at 04:48 PM.

EDITOR’S NOTE: This is the last in a series about questions you should ask your wealth advisor.


“Mama may have … Papa may have … But God bless the child. Who’s got his own … who’s got his own.” — “God Bless The Child” By Billie Holliday (1941)

  When shopping for an investment advisor, there are several important questions to ask in a get-acquainted meeting. One is a simplistic but nevertheless very important inquiry: “Will you actually be managing my money?”

In addition to “Do you serve as a legal fiduciary to me?” and “Are you compensated solely by your clients?” this is one of the most important questions an investor should ask.

Many investors assume that the investment advisor with whom they sign an investment advisory agreement will be managing their money. But simply stated, many advisors do not actually manage assets.

They may serve primarily as asset gatherers and relationship managers, while someone else does the investing. Sometimes that “someone else” is someone within the company, and sometimes it’s a third party manager.

1 2 3

Reader comments posted to this article may be published in our print edition. All rights reserved. This copyrighted material may not be re-published without permission. Links are encouraged.

▲ Return to Top

Local Faves