When in Doubt about a Money Manager

Consider whether hiring a private money manager really is the best idea for you. Yes, there can be performance and tax advantages, but maintaining control, working with financial planners and brokers, staying involved in the process and using mutual funds-which are much more tightly controlled-may still give you the highest sleep factor, and no amount of extra theoretical return is worth it if you spend every waking moment terrified of what happens next.

Remember, too, that for every scoundrel and rogue advisor, the vast majority are up front, honest, and will not be trying to get over on you.
If you can couple that with the basic competency to live up to financial promises, you will have found someone you can work with for a long time.
By Chuck Jaffe
Chuck Jaffe is a senior columnist and host of two weekly podcasts at MarkWatch. He has also been a guest speaker on several television and radio shows.

Copyrighted 2020. Content published with author's permission.

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