How to Choose the Right Asset Management Firm: 7 Questions to Ask First

 

Selecting the right partner is vital to growing and protecting your money. Companies and people in general can easily get bogged down in the options available. With every investment firm making claims of having expertise in investing, personal finance, and financial planning, it can be extremely difficult for either a company or an individual to find a firm that matches their short‐term and long‐term goals and plans.

 

This is why asking the right questions before you commit is of utmost importance. The right questions will take you a long way in making eminent decisions on assessing management firms and ensure you walk away with the insight you need. Below are seven important questions you should always ask asset management firms.

 

1. What Services do you offer?

Each firm provides different types of support. Each firm will additionally have something that they are best at offering, one specific type of support. One firm may specialize in investments only. Another firm may specialize in an overall range of service types – such as bookkeeping, cleaning up, addressing IRS notices, providing or developing financial strategies, etc. Knowing what type of services are available will help you make sure that the firm you choose to work with will be able to add the guidance/support you need today and in the future.

2. Who Will Be Managing My Account?

It’s important to know whether your account will be handled directly by experienced advisors or passed along to junior staff. A good firm should be transparent about who will oversee your finances and what kind of expertise they bring to the table.

 

3. What Is Your Experience in My Industry?

If you’re a business owner, you want a firm that understands the challenges of your industry. For example, handling financials for a tech startup is different from supporting a professional services company. An asset management firm with relevant industry knowledge will be able to provide smarter, more customized advice.

 

4. How Do You Charge for Your Services?

Transparency with pricing is important. Some firms charge a flat fee, others work off a percentage of assets, and some use a combination of pricing models. Before you sign on, request a breakdown of fees and make sure you clearly understand what it involves. The best firms will help you see the worth behind their pricing structure and answer anything you might not understand.

 

5. How do you communicate with your client base?

When discussing money, clear and frequent communication is key. Ask how often you will receive updates, if you can have access to the dashboard in real time, and how quickly the firm responds to queries.  An asset management firm that encourages open communication should provide you with the confidence and support you need with each decision process.

 

6. What Is Your Approach to Risk Management?

Every investment carries some level of risk. The question is how the firm balances risk with opportunity. Do they take a conservative, long-term approach, or do they lean toward aggressive growth strategies? Make sure their philosophy matches your comfort level and goals.

 

7. Can You Share Client Success Stories?

When it comes to your business, nothing is more convincing than actual success. Ask a firm for their examples of how they have helped clients achieve success. It can be cleaning up financial records, guiding a company through an audit, or helping improve cash flow. Real-world examples demonstrate what the firm can deliver.

 

Conclusion

Selecting a partner is not just about choosing the first firm you find. It's about selecting a firm that has a team that aligns with your goals, is comfortable communicating, and has demonstrated expertise. By asking these same seven questions, you will be able to make an informed and confident decision regarding the asset management firm you select.

At 575 Asset Management, we have the philosophy that when it comes to growing your business or simply getting your financial health on track, the best place to start is with a transparent team, clear in their communication, and aligned with strategies that work. When we look at your business, it is not about numbers, but about establishing transparency, reducing uncertainties, and establishing a firm foundation to grow your business over time.

 

When you are willing to take charge of your financial future, you will want to work with a team that understands your needs. Call 575 Asset Management today and find out why so many clients choose us as one of the best asset management firms for businesses looking to grow with confidence.