Why would you let your wealth be managed?

You want to make money work for you. However, saving money does not pay off anymore and investing it yourself is complicated and time-consuming. If you want to get your money moving, but you want to invest yourself, asset management is a great option. In this article you can read what asset management is, what the advantages are.

What is Wealth Management?

An Wealth Manager invests your assets with the aim of achieving a positive return. The Wealth Manager can be an individual or a company. In the past, you could only have your wealth managed if you could invest a considerable amount of wealth, often from €100,000. Today, this is not the case anymore. Some parties offer services from as little as €50.

Investing yourself v.s. Wealth Management

If you want to delve into different stock markets, market history, shares and other financial instruments, investing yourself suits you. You should therefore regularly take the time to maintain and keep track of your investments.

One advantage of investing yourself is that you choose your own investments. You compose your portfolio with a mix of investments that fit your financial situation and investment goals. Think for example of different shares, ETFs, bonds and other financial instruments.

But investing yourself also carries risks. In fact, in practice, it rarely seems successful. Research shows that the average investor barely achieves positive returns over the long term. Investment experts therefore often agree on one thing: you can only successfully self-invest if you have sufficient knowledge and time. In addition, it is important not to invest from emotion. And that is a pitfall of most do-it-yourselfers.

Wealth management is suitable for people who want to invest their money, but don't have the sense or time to look into it themselves. When you have your assets managed, you often have to remit a small percentage to the asset manager. These fees are called management fees. But often the returns achieved (much) exceed the costs incurred. So the nice thing about asset management is that you don't spend any time yourself. You make money work for you, without having to do anything.

Four things an asset manager does for you

Below are the four things a (good) money manager does for you when you have your money managed.

Diversification

Diversification of your investment portfolio is crucial for success. Diversification is to spread your investments between different financial instruments, countries, regions and sectors. If you invest yourself, you have to choose the mix of investments that suits the risk you want to take. If you use an asset manager, they do this for you.

Rebalancing

The value of your portfolio changes regularly. For example, the stocks in your portfolio may suddenly be worth more than your bonds. This makes you take a lot more risk than you thought beforehand. That's why rebalancing is so important. When you rebalance, you balance your portfolio by trading investments so that your mix matches your preferences again. An asset manager will do this for you based on your financial situation and ambitions.

Risk reduction

Do you have a specific investment goal? Then, the closer you get to this target, the safer you can invest to become more certain of your target amount. This is called risk reduction. For instance, you can gradually replace the number of shares you have with bonds. After all, shares often have a higher risk profile than bonds. In theory, this way your portfolio becomes safer and safer. Risk reduction is a time-consuming process that an asset manager will take off your hands.

Plan advice

Some wealth managers give you personal plan advice. They look at your plan and try to achieve your investment goal even more efficiently or quickly. Or, if the economy changes, they'll look with you at ways to adjust your plan so that it continues to fit your needs and goals.  

Conclusion

The conclusion is simple: do you have the ambition to immerse yourself in financial markets and invest time in monitoring the market? Then investing yourself is a good challenge.

Would you rather have your money invested well, without having to invest time and effort? Then you should look for an asset manager. Have your assets managed by Vive and:

• Get an investment strategy that suits you perfectly
  

• Have this investment strategy professionally implemented
  

• Stay in control of all your investments at all times, without having to take any active steps yourself