What it is:
Investment management is the act of helping oneself or others set and meet long-term financial goals.
How it works (Example):
An Investment managers also make recommendations, provide objective advice, and help clients weigh the financial consequences of life decisions. They also help clients stay organized.analyzes a client's current financial status and helps the client set reasonable, achievable financial goals. He or she can address a broad array of questions competently.
Investment management requires expertise in asset allocation, risk management, retirement planning and estate planning in order to help clients at all stages of life and in a variety of circumstances. In some cases a client let his or her act as a fiduciary, meaning that the client gives the manager permission to make decisions on the client's behalf without consulting the client for approval beforehand. Investment management is not free when done professionally; often investment managers charge by the hour or they charge the client a percentage of the assets under management.,
Why it Matters:
management helps millions of people get financially organized and helps them make educated life decisions.
In most states, anyone can financial advisors can obtain, however, and the most common is the Certified Financial Planner (CFP) designation. An must pass the test, have an appropriate level of prior education, sign a code of ethics, and have several years of actual planning experience before obtaining the right to use the designation. must also obtain a certain number of hours of continuing education every year to keep the designation.himself an because there are few licensing requirements and little regulation. There are several credentials that
Several organizations help people find qualified, including the National Association of Financial Advisors (NAPFA), the Financial Planning Association (FPA), and the Certified Board of Standards.