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.

An advantage of investing yourself is that you choose your own investments. You put together your portfolio with a mix of investments that suit your financial situation and investment goals. For example, consider different shares, ETFs, bonds and other financial instruments.

But investing yourself also involves risks. In practice, it rarely seems successful. Research shows that the average investor hardly achieves a positive return in the long term. Investment experts often agree on one thing: you can only successfully invest yourself if you have sufficient knowledge and time. It is also important not to invest based on emotion. And that is precisely a pitfall for most do-it-yourselfers.

Asset management is suitable for people who want to invest their money but don't have the desire or time to delve into it themselves. If you have your assets managed, you often have to give up a small percentage to the asset manager. These costs are called management fees. But often the return achieved yields (much) more than the costs incurred. The great thing about asset management is that you don't spend any time on it yourself. This way you let money work for you, without having to do anything.

‍Four things a wealth 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 shares in your portfolio may suddenly be worth more than your bonds. As a result, you take a much greater risk than you had anticipated. That is why rebalancing is so important. When you rebalance, you bring your portfolio into balance by trading investments so that your mix matches your preferences again. An asset manager does this for you based on your financial situation and ambitions.

De-risking

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 asset managers offer 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 will discuss with you the possibilities to adjust your plan so that it continues to meet your needs and goals.  

Conclusion

The conclusion is simple: if you have the ambition to delve into 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 perfectly suits you
  

• Let this investment strategy be professionally executed for you
  

• Always stay in control of all your investments, without having to do anything actively yourself