Investment Management: What It Is and Why You Need It

Investments are not one size fits all. Your financial situation is different from your neighbors and your coworkers. In turn, your financial portfolio should be made for your future financial success, not someone else’s. Investment management services will serve you because it involves creating a financial portfolio geared towards your goals and only your goals.

Important financial decisions aren’t something that you should take lately. So, in turn, we wanted to dive deeper into Investment Management services, telling you what it means and why you need it.

Understanding Investment Management

To put it simply, when you manage investments, your goal is to make money to help with long-term plans such as financing your retirement. But let’s dive deeper into what that actually means, starting with what the term investment management means.

What does investment management refer to?

According to encyclopedia.com, Investment management refers to the activity of overseeing and making decisions regarding the investments of an individual, company, or other situation. Investment Managers aim to align their client’s financial priorities with their goals and tolerance for risk, known as their portfolio.

Investment management can also be referred to as asset management, money management, or portfolio management. No matter the title used, it all refers to the concept of helping you to meet your financial goals.

What does an investment manager do?

Investment Managers can be an individual, or a team of individuals who work to handle personal investments that are in the form of physical assets such as real estate, or even paper assets such as bonds, stocks, and shares. The goal of an investment manager is to help provide an investment strategy and oversee your portfolio’s asset allocation, making sure you earn the most money possible.

Though we have spoken about how investment management services help individuals step towards financial freedom, you need to understand that Investment Management teams don’t just work with personal investments. They also work with companies to help them successfully guide their investments. Investment managers also buy and sell investments for their clients as needed while monitoring the portfolio’s overall performance.

Through investment management services, you can expect above-market investment returns, allowing for futuristic financial goals to be easily met.

How do investment management services work?

Most companies require you to transfer investment accounts to them or their brokerage. Though this may sound taxing, investment managers will ensure everything is seamlessly moved with as little hassle on your end as possible.

After your accounts are transferred to the appropriate places, your management team will work with you, diving deeper into your savings goals and the time frame you have allotted for such plans. Successful investment managers go over your risk tolerance when it comes to the stock market and use that as part of their strategy in your financial portfolio.

What are the main tasks an investment manager aids in?

1. Investment managers assess your clients’ financial goals and risk tolerance. 

Your investment manager should have in-depth feelings about your goals and discover your patience to lose money should the market fluctuate.

2. Portfolio managers monitor potential investments on your behalf.

Monitoring your investments on a regular basis is crucial as your risk, and returns can fluctuate. When you hire someone to handle this for you, they will make you a priority and ensure that your portfolio stays on a path that is aligned with your goals.

3. They create investment strategies to help you meet your goals. 

Every person is different, which means their financial situation is different too! Your investment portfolio should be tailed for your purposes, and they should ensure your eggs are never in one basket.

Can I afford an investment management team?

It is prevalent to end up with an assortment of investment accounts. Most often, we see 401(k)s from former jobs as well as current jobs, IRA’s, and CDs. Investment Management services help to streamline your finances by consolidating accounts from different firms, making your portfolio cohesive and readily accessible. However, this service does come with a price. Managers typically charge a fee around 1% a year on the amount of money they are managing for you, debited from your assets on a quarterly basis. This 1% fee is merely an investment in advice and will bring financial stability and growth along with it.

Without investment management services, you can never be sure if your money will last. So, if you can afford investment management services, can you afford not to utilize these services for a more secure financial future?

 How should I go about hiring an investment manager?

Trust Company of Oklahoma has a team of investment management professionals with an average of 20 years of experience in the markets. Eight of our portfolio managers hold a Chartered Financial Analyst (CFA) designation, and the others are in the process of earning that designation as well.

As fiduciary, we are held to the highest standards. Our investment philosophy is built on the foundation of always doing what is in your best interest.

4 Reasons to Hire an Investment Manager

1. You have not made many financial decisions in the past and are nervous about how you should properly invest your money. 
2. You do not have the time to continuously audit and adjust your investing decisions on your own. 
3. You are getting married or having a child. Any major life change or significant change to your income should require you to alter your investment portfolio. 
4. You are dealing with complex issues such as inheritance, retirement, or even planning for the legacy you will leave behind. 

Trust Company of Oklahoma has been successfully investing in client assets for almost four decades. Our investment management team works with you to develop a long-term investment plan tailored to your needs and desires. The program we create is adjustable because as your life changes, your investments need to as well. Our professionals will manage your assets with your goals in mind and the discretion and integrity you expect. So contact us to get started!