Money Management

Should You Have Your Money Managed?

by Barry Boscoe, CFP

For some people, professional money management is well worth the price.  It saves their time and energy, and allows them to sleep nights knowing that a trustworthy pro is negotiating on their behalf in the market.

For others, paying for investment management is an unnecessary expense.  They are willing to invest on their own, and feel better off saving the fees.

Where do you fit?  To find out, take this quiz, developed with the help of Gruber and Heidi Steiger, a partner at Neuberger and Berman, a New York-based investment management firm.

  1. Does your portfolio lack a clear investment strategy for dividing assets among stocks, bonds and cash?
     Yes__________                     No__________
  2. Are your investment results consistently lower than market averages?  In other words, if you invest in stocks, do the returns in your portfolio consistently lack the returns of the Dow Jones industrial average or the Standard & Poor’s 500?
     Yes__________                     No__________
  3. Are you distracted by worries about stock and bond market fluctuations or changes in interest rates?
     Yes__________                     No__________
  4. Are you worried that a lack of investment experience is jeopardizing your ability to save enough for major financial goals, such as retirement or paying college tuition costs for your children?
     Yes__________                     No__________
  5. Would having somebody else make these investment decisions cause you to worry less about your investments?
     Yes__________                     No__________
  6. Do you feel comfortable with the idea of someone else making the day-to-day buy and sell decisions for your portfolio?
     Yes__________                     No__________
  7. Have you had assets successfully managed by professionals in the past — through mutual funds, bank trust departments, pension funds or professional money managers?
     Yes__________                     No__________
  8. Does your portfolio’s performance suffer because you can’t spend enough time educating yourself or managing your investments?
     Yes__________                     No__________
  9. Do you have a clear understanding of why you own the investments you already have?  And do you have rational expectations of what these investments can do for you?
     Yes__________                     No__________
  10. Does the time you spend managing your money prevent you from earning more in your occupation?
     Yes__________                     No__________

If you answered “yes” to at least three questions you should consider professional money management.