Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Daily Money Manager (DMM)

What it is:

A daily money manager (DMM) is a person who manages day-to-day financial responsibilities for clients.

How it works (Example):

For example, let’s assume John Doe is elderly and lives alone. His wife, who used to handle the bills, insurance, shopping, budgeting, recordkeeping and investing, died a year ago. John’s children feel he is too overwhelmed and distracted to care for these things effectively. John hires a DMM to help out.

The DMM pays all the bills for John, handles things if John is billed incorrectly, balances John’s checkbook, prepares and makes bank deposits for him, gets his tax information ready, and ensures that his medical bills are processed and paid correctly. The DMM visits John at home twice a month.

Why it Matters:

DMMs are a growing sector of the financial services industry. They are often employed by baby boomers and seniors who are too busy, disinterested, or confused to deal with their day-to-day financial lives. DMMs often do not have fiduciary powers, meaning they cannot sign checks for their clients or withdraw funds from their accounts.

The American Association of Daily Money Managers is a trade association for DMMs.

Related Terms View All
  • Auction Market
    Though most of the trading is done via computer, auction markets can also be operated via...
  • Best Execution
    Let's assume you place an order to buy 100 shares of Company XYZ stock. The current quote...
  • Book-Entry Savings Bond
    Savings bonds are bonds issued by the U.S. government at face values ranging from $50 to...
  • Break-Even Point
    The basic idea behind break-even point is to calculate the point at which revenues begin...
  • Calendar Year
    If Company XYZ starts its fiscal year on January 1 and ends its fiscal year on December...