The way most financially successful families manage their investments—on their own, using an advisor, or some combination of the two—has several shortcomings.
The Trouble with Traditional Investment Management
A shortcoming of traditional investment management is often only a portion of the family’s total investment accounts are evaluated on a regular basis. This applies if the account owner is doing the management or a financial advisor has been retained. The rest of the family accounts—often most of their nest egg—are not managed at all. What sense does that make?
A second shortcoming is that most households consider the administrative and record-keeping aspects of investment management a burden that they would rather not bear. They feel like there are too many accounts to keep track of and statements that are hard to understand, if not downright confusing.
These shortcomings can lead to a much bigger and often unnoticed problem: If you combine the investments, you find that they lack diversification. Having too many eggs in too few baskets can lead to portfolios that underperform, are high risk, or both.
And who is in the middle trying to handle it all? It's no wonder that families are often left feeling not in control of, and unsatisfied with, their investments.
The PersonalCFO Difference
These families—and perhaps yours—could benefit from having a knowledgeable and trustworthy single point of contact overseeing their investments. We call that person a PersonalCFO.
The PersonalCFO is the connection between your family and your investments. There is ongoing communication between your household and the PersonalCFO, who relieves your family of administration, record-keeping, investment expense, tax and risk minimization, diversification, and of course, overall performance.
If you already have a valued advisor managing a portion of your investments, the PersonalCFO doesn't replace them. Rather, the PersonalCFO increases their effectiveness by working with them. Through our sophisticated web portal, your PersonalCFO receives daily updates on all your investment values in order to seamlessly manage your accounts.
Having a PersonalCFO can simplify your life and give you relief from investment administration so you can focus on your most important priorities. You can gain the confidence that the investment piece of your financial life is being done well. But what's really exciting is having a PersonalCFO executing a well-designed and well-executed investment strategy that helps accelerate the growth of your net worth.
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