Why Consolidate Assets in a Managed Account?

Reasons managed account advisors can help you meet your financial goals.

By Louise Googins

Consolidating assets into managed accounts allows you to work with a fiduciary who provides holistic advice.

The number one reason provided for transferring assets to managed accounts is that the manager is a fiduciary responsible for giving you good advice, while a commission-based advisor can put himself first. Do I believe that is always true? Certainly not! I have been a commission-based advisor before taking on managed accounts and always considered myself an advisor whose first concern was earning a good return for the client while providing additional suggestions. I know there are other dedicated commission salespeople who do the same.

People realize sooner or later they are not making gains if they have been taken advantage of by a salesperson who is only interested in the commission he/she earns for a current sale. Those same people are very happy and appreciative when they meet an advisor, commission or asset manager who cares about them and provides holistic advice.

The more important reason for consolidating into managed accounts is that it allows access to a knowledgeable advisor who can help make decisions that match your financial actions with your retirement goals. The managed account advisor should also help you save on various costs and income taxes through the advice he/she provides. The advisor may introduce planning techniques that are new but important to your goals, and explain concepts like Transfer on Death (TOD accounts) and Revocable and Irrevocable Trusts so you can absorb them before visiting an attorney. If you engage an attorney, in our case, we retitle the accounts as part of our annual fee to manage the accounts. There are many other items considered, and we enjoy working with the client’s tax and legal advisors. 

A commission-based advisor may stay in contact with you, but that cannot last if you don’t continue with an investment program.  The advisor cannot make any changes to an investment he has sold you without your consent. But, a managed account advisor with discretionary authority can – and he/she is expected to do so. Setting up managed accounts with an advisor lets you “sit back” and enjoy the results. You should also expect to get yearly reports and meetings with your managed account advisor to go over results and suggestions that improve your plan. Stay tuned for more information on how investment advisors and managed accounts work.   

Are you interested in consolidating your assets into a managed account? Schedule a no-obligation consultation with one of our managed account financial advisors today.



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