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.