Saturday, October 17, 2015

Lessons in Asset management (part 2 of 2)

2. Have a say

A common mistake of most people who hire asset management people is once they get someone, they wash their hands off the entire thing. Don’t. Show the guy or gal that you want to take an active part in managing your assets. This will prevent any hanky-panky because they know that you are monitoring your money.

Do not give the full control to the manager when it comes to making investment decisions. The final say should always be yours. So before investing in something, the person you hire should first present you with the background of the investment and if possible show other possible investments that are similar to it so that you will have the chance to compare.  

3. Learn the biz

It is not enough that you know what the goings on of the asset management, you also need to understand it. Some people may not give full control to their managers but will sign anything that these managers give them without really understanding what the papers are saying.

Remember that although you have worked with the same person for years or a friend of yours know him personally, he or she can still rob you of your money. Asset management is a risky and cruel business. Make sure that you are prepared to stand guard over your investments.

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