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10 Tips For Choosing A Money Manager For Wealth Management

What To Look For In A Money Manager


One of the questions we get asked most frequently is, “How do I choose a Money Manager to manage my wealth?” Whether you are a small, private investor or you represent a large organization, many of the same principles apply.  These are a few criteria that you can weigh and consider when selecting a Money Manager for your investments:

  1. The most important factor is to eliminate all mutual funds within the portfolios the money manager currently manages. This is because mutual funds often carry undisclosed costs and create another layer of money management fees that decrease the performance of your investment portfolio.
  2. The manager should also eliminate all direct sales commissions and use a third-party custodian to house all assets. A “No-Fee” management structure is how we solve this for our clients.
  3. The Portfolio Manager should be a Registered Investment Advisor organization because; unlike broker/dealer representatives such firms are required to comply with the highest level of fiduciary standards in the financial services industry.
  4. The financial managing firm should have scaled its business model by applying a high level of technology resulting in a lower investment cost to the client’s portfolio. Doing so also allows the registered investment advisor to focus on increasing services to benefit existing and new clients.
  5. The application of technology should include periodic Portfolio Risk Analysis strategies to add to client comfort. The analysis should occur at least yearly so the portfolio can be rebalanced to maintain the risk level the client had chosen when the account was opened. Doing so helps the client avoid an emotional reaction during strong market declines.
  6. Money Managers should apply a Directly Managed Strategy™, (DMS) to include cost-effective, Exchange Traded Funds. As mentioned above, the strategy eliminates all mutual funds from portfolios thus saving the duplication of management fees along with undisclosed fees.
  7. All dividends within the portfolio should be immediately reinvested in the stocks of the dividend issuer to geometrically compound growth with the greatest efficiency. Please refer to our Yield Enhanced Strategy™, (Y.E.S.), which takes advantage of this process with all dividend-paying stocks.
  8. The financial firm should have an efficient staff and research facility.
  9. The financial organization should feature a newsletter that offers updates and wealth-building suggestions.
  10. Ideally, clients should be able to take advantage of broad wealth management data that provides one-on-one updates and current information regarding new strategies.

A money manager needs a plan to put you on the road to financial independence

Financial independence starts with a good roadmap used for financial planning. Do you have one?

An Investment Management Industry Problem

Environmental, Social and Governance, (ESG) Investor concerns have gone mainstream… but few financial advisors are currently promoting ESG investment opportunities to prospects and clients. Our firm has always offered segmented choices that include ESG concerns.

Last year, the number of ESG mutual funds and ETF’s grew nearly 50% to 351 and the expansion is still growing with TIAA, Vanguard, and the largest; Black Rock group issuing new products. A 2017 survey by Morgan Stanley research concluded that 75% of investors expressed an interest in Sustainable investing. Yet, only 36% of advisers offered ESG options last year according to a Nuveen Responsible Investing Survey based upon 2018 data!


Are climate change, gun control and gender diversity not important to humankind? Apparently so. We feel that Registered Investment Advisors must help guide clients to Environment, Social and Governance, (“ESG”), opportunities where appropriate. It is apparent that investors do have an interest…and that interest should be addressed by all their advisors at every level.

Contact our Toledo OH office to schedule a free, private consultation with our CEO, Bob Kneisley. Call Indicator Advisory at 419-726-9000

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