Do You Need A Money Manager

Are you nervous about the stock market and your 401(k)? Are you too busy to manage your stock holdings? Do you wish someone else made the investment decisions for you? If you have a sizeable account, you can hire your own money manager. Those questions were asked by Investor Business Daily with the accompanying solution. There is a money management firm in Dallas that will "hold the hands" of their clients and "let the client be involved in the process as much as they want to be."

Money managers do exactly what their title suggest, they manage your money. A financial planner gives advise in several areas, includiing retirement planning, estate planning, insurance, taxes and investment asset allocation. A money manager actually manages your assets, choosing which stocks and mutual funds to invest in.

You will need to invest at least $100,000 to be able to hire a manager. Many firms have set portfolios made up of mutual funds and will invest the moey in these portfolios according to each client's situation.

If you have $ 1 million or more, you can hire managers who will invest your money in individual holdings. Often you won't pay mutual fund fees or money manager fees. Smith Barney Asset Management will customize portfolios, for investors with specific social and enviromental concerns. If an investor is adverse to tobacco stocks, the firm will not include such qquities in the client's portfiolo. Or if the client wants to invest in companies that are proactive in reducing pollution, the firm will find the best stocks in that category.

Your professional money manager will also help manage your tax situation, says Paine Webber. Since the manager knows your cost basis, the manager can take that into considertion, when buying and selling equities.

Your money manager fee will usually be between 1% and 2% of assets, depending on the size of your account, the bigger the account, the smaller the percentage. With over 27,000 registered investent advisers in the U. S. you have plenty to choose from.

Do your due diligence before selecting a money manager. Experts suggest:

1. Do a background check with a Form ADV Part II;
2. Look at real returns based on actual client accounts after management; fees
3. Consider risk by looking at how the manager performs in bad times;
4. Ask where your assets will be held. They should be with a third party custodian;
5. Have the manager sign a fiduciary oath which states the manager is acting as a fiduciary and is not selling products;
6. Get referrals through a third party, such as a broker, financial planner or CPA.

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This intellectual capital is provided to our friends and clients. While this letter hopefully gives you a heads up on several strategies that you might use before the year end, there are any more techniques that can be used depending on a client's individual circumstances. If you know someone that is looking for a way to save taxes and avoid IRS audits, think of us. We may be reached by phone at (720) 642-8953 or by write us at isueirs@aol.com.

Remember, we save you taxes and keep you away from the IRS. No Exceptions. No Time Limit. No Conditions. No IRS.