Why do some investors prefer managed accounts?
- The desire to obtain professional money management
- The desire to outsource day to day investment decisions and trading activities
- Access to investments or investment classes available to institutions only
- Experience, reputation, or specialization of a given money manager/financial institution
- Third party perspective support to discuss ideas, evaluate research, or stabilize
emotions - To work with a financial professional to improve investment acumen over time
- Maintaining maximum flexibility to change portfolio if needed, particularly if unplanned need arises, and minimizing total costs over the period of investment
- Utilizing a third-party professional to engage with family members, business associates, or potential charitable requests, or other financial professionals, as applicable
A few of the most common reasons why some investors do NOT use managed portfolios are:
- The desire to be fully engaged in day-to-day investment decisions and trading activities
- When money is directly invested primarily into non liquid assets such as operating businesses, real estate, natural resources, or precious metals
- Investing inside an investment brokerage account better serves the investor need/scenario
Investments in securities do not offer a fix rate of return. Principal, yield and/or share price will fluctuate with changes in market conditions and, when sold or redeemed, you may receive more or less than originally invested. No system or financial planning strategy can guarantee future results.
