help clients manage their investments

you may not have the expertise, but you likely know someone who does.

by ed mendlowitz
the 卡塔尔世界杯常规比赛时间 practice doctor

investment allocation construction is a valuable service that helps a client get a perspective on their investments, their projected assets, the current and prospective cash flow from the investments and measures this against the client’s individual risk tolerance and broad long-range goals.

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many times the client has to be “taught” basic investment principles, techniques and vehicles and have these related to what might be best for the client. then a portfolio model has to be constructed that will provide the right degree of risk with the feelings of security the client needs.

who needs this service

every client who invests in any manner needs assistance in his or her investment allocation construction.

many of our tax clients may not have much savings or personal investments, but they might have 401(k) accounts and other employer-sponsored accounts. these are usually not serviced by so-called independent financial planners since there is no opportunity for commissions on sales of new products or management fees since the employer (or their agent) manages these accounts. despite the employer control, the client is usually given ranges of choices that many clients find to be a complicated maze, so they use the default provisions.

wky the accountant is suited to offer this service

we find that while most accountants are not the best qualified to offer these services, they can do a fine service helping the client understand why they need help, and how to get it. we usually have the easiest access to all of their data if we would just ask for it.

providing information in a user-friendly manner is sometimes the best service we can perform. collecting and laying out all of the client’s financial assets in an easy-to-follow way can lead to discussions about the asset allocation that the client has and that which would be the most appropriate. this goes back to the financial planning goals that we can help a client determine for themselves. many of the additional services are interrelated and should be considered jointly and not on a one-service-at-a-time basis.

our training as accountants equips us with the best tools to show clients where they stand and how they can measure it against where they want to go. once the present situation is held up against the future goal and if additional assistance is then needed, financial planning specialists can be recommended.

introducing the client to the service

clients can be asked very simply how much of their total assets they have in the stock market. they will either know it, or won’t.

if they know it, ask them why it is that amount. this would usually lead to them describing their goals and risk tolerances and why they chose that percent for their equities. if they appear to be in control and you feel their goals are well considered, then they are not a candidate for your assistance.

if they do not know why, then you might ask them some questions about their goals and how they expect to attain them with their investing philosophy. this could open up an evident need for additional services.

investment management

this is a service that actually manages the client’s funds. almost every brokerage firm, many financial planners and some accountants perform this service. this service ranges from making suggestions about what to invest in to complete control over all maneuvers.

who needs this service

every client who invests in any manner and is not an investment professional probably needs this service. one of the problems with this service is the unavailability or inaccessibility of good people for many of our clients. we also find that many clients in dire need of such services are not willing to pay reasonable fees for independent advice. instead they prefer to use the usually no-cost or low-cost services of the organization that sells them the products or manages their money for annual fees based on the value of the assets managed.

why the accountant is suited to offer this service

most accountants are not suited to offer these services. however a small number have entered the financial services business by either managing money, selling financial products or receiving fees for referrals.

discussions of the range of services and the reasons for or against it have filled many books. most of the accountants we know who are doing this have been, or are, tax people, or it was the tax people who introduced the idea to the firm. this certainly is a service that grows out of the tax compliance work we all do.

our training as accountants along with the added investment advisory training that must be obtained equip accountants with the best tools to help clients in their investment management.

introducing the client to the service

clients with substantial marketable security investments can be approached after tax season to see how they would feel about turning over the active management of their assets to a dedicated professional – either someone in the firm who acquired this specialty, or an affiliate or alliance member.

posted on june 14, 2023