What is the investment management process?
Managing an investment portfolio is a four-step process: evaluating your needs and goals, developing a plan, executing the plan, and measuring and evaluating the plan’s progress. In the evaluation step, the portfolio manager and client determine investment objectives, establish risk tolerance, and set expectations. In the next step, they choose an asset allocation based on all these factors. The portfolio manager then puts this plan in action, and in the fourth step, monitors and adjusts asset allocations based on performance and new opportunities or threats in the market.
Why is investment management important to estate planning?
For high-net-worth individuals, managing investments is essential for successful wealth transfer. As part of the estate planning process, a wealth manager can help a client protect their assets and minimize inheritance and transfer fees and taxes. This can ensure that the maximum amount of their clients’ wealth is distributed according to their wishes without imposing an undue burden on the recipients.