(720) 962-6700

Join Wambolt Wealth News

(720) 962-6700

Join Wambolt Wealth News

Investment Management

What Is Investment Management?

The term Investment management means building a portfolio of stocks, bonds, and any other investments such as cryptocurrency that is based on your overall goals. When it comes to investing and wealth management, you have the option to hire your own investment management company or do it all on your own.  

Hiring a firm that deals in investment management may sound like a service for the rich, or that you can’t afford this level of service, but the fact is they are only in business to make you money, no matter how much or little you have. When it comes to investment management, it’s very important to ensure every dollar you have in the account is properly optimized and working hard for you. This is what an investment manager can help you do.

Investment management definition

“Investment management” is the customized creation and care of an investment portfolio. Investment management also includes suggesting an investment strategy based on your risk tolerance, buying and selling investments, and managing your portfolio’s asset allocation. Investment management can be done by an advisor or you can do it on your own if you have the skillset and a good understanding of the markets.

Portfolio management and asset management are other terms used to describe an investment manager. Their job isn’t just about managing specific assets in one’s portfolio, it about ensuring the portfolio will evolve as the client’s needs change and continue to grow with consideration for the client’s risk tolerance and financial priorities.

What do investment managers do?

An investment manager can be either a company or a person who manages an investment portfolio on behalf of a single client or multiple clients. Investment managers come up with an investment strategy for each client based upon their suitability standards. Then from there, they decide how to split up their client’s assets among different types of investments, such as stocks, bonds, and crypto. The manager will then buy and sell those investments on behalf of the client as needed and monitors the portfolio’s overall daily and monthly performance.

When should you hire an investment manager?

Over time people end up with a few different types of investment accounts — from a 401K from former jobs, IRAs, a brokerage account you opened after you saw a documentary on Warren Buffett, and a bitcoin account. investment management can help streamline your financial life by consolidating all of your accounts from different firms and move them all under one roof, making it easier to execute a solid investment plan.

But even if all of your investments are held within one account, the investment management services can be helpful but only if:

  • You’re not 100% confident about making investment decisions on your own (or need a second opinion).
  • You need another person to keep tabs on your portfolio and rebalance assets as needed when they drift from the original formula.
  • You’re dealing with very complex issues, such as tax strategies
  • inheritance, legacy planning, or retirement-income planning.
  • You need help managing other financial needs such as cash-flow planning, debt management, or insurance in addition to portfolio management.

See more about investment management services offered by Wambolt Wealth