For some investors, hiring a wealth manager is a no-brainer. Whether it’s because finance and investing was not your chosen profession, or because you enjoy spending time doing other things, managing your financial life may feel like something best handled by a professional. Easy enough. For others, the decision to hire a wealth manager or financial advisor is not as clear-cut. There are “do-it-yourselfers” who prefer self-managing; people who keep all of their retirement assets at the bank or in the old company 401(k) plan; and even those who want to hire an advisor but simply don’t understand enough about the wealth management profession to know where to start (if that’s you, start here.) [+] Read More

It is an interesting time in the United States’ sociopolitical sphere, to say the least. But lucky for you, this article isn’t about politics, a social movement, or anything in the news for that matter. It is about what to do if you start to get worried about how the equities and/or bond markets may react to ongoing developments and potential controversies. In the current environment, it is the uncertainty that has many investors on edge. For some, every day may feel like it has the potential for some breaking story that sinks markets. To help address any concern investors may have, we present a 4-step action plan for what to do when you’re worried about your investment portfolio. [+] Read More

Dr. Meir Statman is a professor of finance (with a focus on behavioral finance) at Santa Clara University. You might say he is a foremost expert on how emotions can affect financial decision-making for managers and investors. His most recent book, “Finance for Normal People: How Investors and Markets Behave,” is pretty much a dead giveaway for where his life’s work is focused. So, when Dr. Statman pens an article in the Wall St. Journal titled, “How Emotions Get in the Way of Smart Investing,” it is probably worth a close look. Indeed, the relationship between human emotions and investing is a complicated one – and it’s one that many experts would agree is at odds. Few would disagree with this general idea: investors who can remove emotion from the investing equation have a better chance of doing well over time versus those who cannot. As Warren Buffet succinctly puts it, “it’s an easy game if you can control your emotions.” [+] Read More

Once you’ve realized that hiring a financial advisor is worth it, the next step is choosing the right one for you. When you began your search you may have noticed that there is a wide variety of different acronyms that come after their name. For investors of all types, the alphabet soup of financial credentials can be confusing, especially if you’re searching for a wealth manager or financial advisor with a particular skill set. Read on to learn about the difference between a Certified Financial Planner®, a Certified Wealth Strategist®, and a Chartered Financial Analyst®. [+] Read More

Editor's Note: This post was originally published July 2016 and was updated in April 2017 with new information for your benefit. Investors often gauge a financial advisor’s value by measuring what’s tangible: short-term performance and financial advisor fees. However a study conducted by Benjamin Cummings of St. Joseph’s University finds there is a positive correlation between hiring a financial advisor and seeing positive impact on your net worth. The study places value on the intangible benefits a good financial advisor can provide you. Investors should not hire a financial advisor based solely on performance and fees, as doing so would overlook the positive value financial advisors can contribute through intangible benefits – acting as a sounding board for investment ideas, providing you guidance during volatile times in the market and helping you sleep at night. These benefits are valuable to not only your financial health, but also your personal health. [+] Read More

In the realm of investment advice, all it takes is seeing the definition of “fiduciary standard” to understand why it’s so important: Fiduciary - “a Financial Advisor held to a ‘Fiduciary Standard’ occupies a position of special trust and confidence when working with a client. As a Fiduciary, the financial advisor is required to act with undivided loyalty to the client. This includes disclosure of how a financial advisor is to be compensated and any corresponding conflicts of interest." Put simply, abiding by the Fiduciary Standard means putting your clients’ interests first. Most investors might read the above definition and think, wasn’t this the rule the entire time? It should be that simple, right? Not necessarily. [+] Read More

Editor’s Note: This post was originally published in December 2015 and updated January 2017. While financial advisors and money managers have many commonalities, and are complementary to one another, the two jobs are very different and are rarely held by one individual. Financial advisors – also referred to as wealth managers, financial planners and investment advisors – understand the specifics of their client’s financial lives and create a detailed, comprehensive investment plan that is best positioned to help you reach your financial goals. Money managers on the other hand spend their time focusing on successfully managing the strategies that your portfolio is invested in. WrapManager's eBook, Guide to Researching Money Managers, discusses this topic in more detail, but we believe your financial advisor and your money managers should be different people. This allows for additional checks and balances that wouldn’t exist if one person performed both jobs. After all, no self-respecting chef would disparage their own food! [+] Read More

Editor’s Note: This post was originally published in April 2014 and updated January 2017. A financial advisor’s job, at minimum, is to create an investment strategy based on your economic situation and goals. But that’s a bit like saying the job of a dancer is to move their body to music. Some do it better than others. A good financial advisor should take the time to get to know you and your family, and spend as much time as it takes to get a firm understanding of your financial situation, goals, retirement income needs, estate planning needs, risk tolerance, etc. The result should be a comprehensive financial plan that considers multiple outcomes and gives an expectation of how much income you can expect to have in retirement. [+] Read More

Here’s a statistic that may catch your eye (or make it shed a tear): since 1980, total mutual fund assets have increased by 135 times, but the total expenses paid to equity mutual-fund managers has increased 141 times ($170.8 million to $24,143 billion).1 Have your investment fees, or the fees you pay to your financial advisor, been going up as well? 3 Actions You Should Take to Examine Your Investment Fees [+] Read More