Tips on asset management for individuals
How to get a good return, secure your assets, and create long-term wealth

If asset management sounds too technical to you, it shouldn't.  In very simple worlds, good asset management is taking good care of your assets, get the highest return, secure them against unforeseen circumstances, and create wealth.  In most cases, you should be able to do it yourself and I will offer some tips, but if you are not confident about your skills, it is best to hire an asset management consultant, for example, Fidelity Investment, American Century, Northern Trust, etc.

• It makes good financial sense and should be on everyone's mind.
• Assets can be used to both create another source of income and a source of wealth.  
• Assets provide security against unforeseen events, like job loss, business losses, decline in portfolio value, death, etc.  (Related:  Personal finance for empty nesters)

How to manage your assets yourself?

• Your asset management strategy will depend on your age, income, assets portfolio, and risk appetite.  There can be other factors as well that you need to consider for your specific situation.  (Related:  Should I refinance?)
• The rule of thumb is that if you are younger you can allocate your assets in a way that a large portion is invested in high-risk (and possibly high-return) assets, e.g., stocks.  As you get older and unless you have tons of money, you should try to reduce your appetite for risk by moving into more secure assets, e.g., real estate, bonds, mutual funds.
• The larger the value of your portfolio the more time you will need to allocate to managing it.  Several online tools enable you to get a clear picture of most of your assets in real time but for some (e.g. real estate) the data is delayed by months.  (Related:  How to avoid foreclosure)

When should you seek profession help from an investment consultant?

• You lack the time that you need to manage effectively.
• You don't have the knowledge and either can not or do not want to learn it yourself.
• You want a certain reasonable return from your assets but are not interested in day-to-day management.

What to look for from an asset management consultant?

• Personalized service that is designed to help you maintain and create wealth and give you the piece of mind.
• Be careful if they want to push certain investment products (where they make a commission).  It is best to pay higher fees to an unbiased advisor than less fees to someone who essentially wants to get rich through commissions.  Carefully check conflicts of interest.
• Research many firms well.  Read what they offer and how.  If possible, ask to speak to other clients before signing up.

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