Is there a difference between money managers, brokers, or financial planners?
It is worth noting that money managers differ from stockbrokers or financial planners. Brokers, generally employed by wire houses (Merrill Lynch, Morgan Stanley, Smith Barney, et al) or by traditional Banks (Wells Fargo, Bank of America, et al), are compensated when you execute a transaction. These transactions can include the buying or selling of individual stocks, mutual funds, or insurance products. Financial planners, similar to wealth managers, give advice, but generally do not implement a course of action. Many are fee-for-service, though they may too sell financial products. Money managers, however, maintain your portfolio on a discretionary basis, meaning they buy and sell securities for your account, based on specific guidelines that you agree to at the start of your relationship. A money managers fee is based primarily on the amount of assets under management. Therefore, the money managers primary incentive is to make your assets grow. Who should use a money manager? Most peo
