Generating a substantial wealth and asset portfolio is the first step in ensuring current and future fiscal security – but efficiently managing that portfolio becomes the most important aspect of preserving an investor’s wealth. However, understanding financial markets and their trends and having a sound knowledge of investment options and risks is a professional skill set that takes years to acquire and hone. Individuals not practicing in financial services are not always best equipped to make informed decisions regarding their financial portfolios. Portfolio managers take on this role on their clients’ behalf. While having a professional to manage one’s finances is often the savviest decision for high-net-worth individuals (HNWIs), it is still imperative that investors have a general understanding of the reasons behind certain financial decisions and can interpret financial advice well enough to make their own informed decisions. Financial advisors and investment consultants ought to be considered valuable sources for financial education and client empowerment.

Establishing relationships

Choosing a firm to manage your assets and wealth is a decision that should be made with great care and consideration, as your dedicated portfolio manager will ideally work closely with you for many years. A portfolio manager will get to know their clients’ current financial standings, long-term financial goals, and risk tolerance and make informed decisions with fiduciary duty. It is important to choose a firm that understands and matches your personal and professional values so that you can trust that your assets and goals are being managed and looked after as you would do it yourself. Whether you live in a large city or a smaller town, it is worth looking into local asset management firms to make it easier to establish strong relationships with experts you can trust – for example, if you live in Barrington, Illinois, it would be most convenient for you to source a financial advisor in Barrington. Portfolio managers offer continuous support and guidance to their clients and are typically available to meet with them as needed to ensure trust and confidence.  

Building financial literacy

Having a basic understanding of financial concepts will go a long way to building financial literacy and making clients feel informed and confident about decision-making around their assets. An expert in their field, such as an investment consultant or financial advisor, can explain terms such as bonds, stocks, risk-tolerance, and mutual funds in a digestible way and relevant to their client’s circumstances. While it might be easier to find an investment consultant in Chicago and other major metropolitan areas, locating a financial advisor in Barrington, Illinois, and similar, smaller suburbs is not as challenging as it may previously have been. A sound understanding of financial concepts and the market you invest in will make it easier to set short and/ or long-term goals for your assets. Your trusted financial expert can assist you in clarifying and articulating your goals and ensure that you feel confident in taking their advice to reach them.

Encouraging active participation in decision-making

While portfolio managers will execute many of the decisions regarding your assets, wealth and investments, they want their clients to have a sense of ownership and confidence in managing their assets. Regular consultations and discussions between clients and portfolio managers keep the client informed and updated with relevant information, trends, and opportunities, empowering them to participate in decision-making actively. As a virtue of the strong relationships that have been established, portfolio managers can also give investors expert, objective advice that they can confidently trust. Presenting a client with various investment opportunities that they feel confident in making decisions around while offering professional advice is a sign of a strong client relationship.

Long-term thinking

Encouraging long-term goal setting and thinking is another way that portfolio managers encourage investors to participate in and remain committed to financial decisions and objectives. This is another reason that finding a local, independent firm will serve investors well. A portfolio manager who understands your experiences and is aligned with your values will likely understand your long-term vision better than a more impersonal partner might. Residents of Chicago might want to look for an investment consultant in Chicago or the surrounding areas, for example. This proximity, while not necessary, may go a long way to establishing the kind of relationship an investor looks for with a prospective asset and wealth portfolio manager.