Choosing an investment management firm is an important step in building wealth. Choose the wrong one and you risk losing your investment to poor management and high fees. Not every firm is right for each investor. Here are some strategies you can use to find the right investment management firm for your needs.
Be Realistic About Your Needs
Each investment management firm offers customers a different level of service. Some full-service wealth management firms take ownership of the entire process, from monitoring your investments to buying stock on your behalf to maximize your returns. Others, such as discount brokers, may cost less than full-service investment management firms but require you to actively manage your own investments.
If you want the expertise and management from an experienced investment broker, a full-service firm is likely a better choice. If you want to trade your own investments and feel confident doing so, you may not need this level of service. This depends on your actual needs.
Don’t Let Cost Be Your Only Deciding Factor
When it comes to hiring an investment firm, don’t let cost be your only deciding factor. A less expensive wealth management firm may offer you less expertise and returns. After all, it is better to have a smaller percentage of large returns than a larger percentage of a loss. With investment management firms, you often get the quality that you pay for. This doesn’t mean you should choose the most expensive firm; instead, embrace a balanced approach by signing up with a knowledgeable and trustworthy firm that falls into the middle of the range.
Conduct a Quality Assurance Check
Before you spend any money with an investment management firm, conduct your own quality assurance check. Make sure any licenses or accreditation are up to date. Ask for recommendations or referrals. Try not to rely only on what the investment management firm says about itself, and confirm the information you are given whenever possible.
Have Clear Communication Expectations
Most investors have their own ideas about communicating with their investment broker. Make sure your communication expectations match what the firm offers. Do they proactively notify you about each trade? Do you want quarterly reviews of your portfolio’s performance? Find out how and when you should expect the firm to communicate with you.
Carefully consider the level of communication you experience when you first interact with the firm. Is the broker slow to respond? Does he or she seem knowledgeable? Does the firm come across as professional?  If you’re underwhelmed by the level of the communication you receive early on, it’s a good sign you need to find a different wealth management firm.
Learn About the Firm’s Investment Approach
Wealth management firms use many different investment approaches. Some use the same blueprint for all clients, while others create an individualized investment plan. Some firms invest in the latest technologies hoping for quick payouts, while others plan long-term, sustainable investments. Make sure the firm’s approach makes sense for your needs.
Cowen Tax Advisory Group is a trusted investment management firm that creates individualized plans to help clients build long-term wealth. We’re known for our client-first service approach. Contact us for a free consultation where we can learn more about your needs.
Sara McKinney
 saractag@gmail.com
As Cowen Tax Advisory Group’s Digital Content Marketing Specialist, Sara provides in-house copywriting and manages the company’s electronic records system, email marketing, and blog.
