(Names are fictitious)
I have a friend named Melissa. She is a lovely, gorgeous divorcée who spends her time principally between Washington, Palm Beach, Aspen, and the Middle East. She is a dynamo, always on the go, and always on to the next high profile engagement. Often she calls to catch up and on occasion asks if I can do her the odd favor.
Well, when Melissa called three weeks ago and proposed the following, “Sean, I need a favor of you and think it will be fun. I need you to take my dog, Baby, a Coton de Tulear, up to New York City to live with a beautiful and intriguing advocate of animal welfare. Because I am in transition so much and the way things are, I can’t provide a stable enough environment for her at the moment…” “OK… Hmm,” I said. Whoa, this is hardcore I thought - I’m gonna’ transport a lap dog to New York City and meet a gorgeous girl, named Alexandra Sapphire. Without hesitation I said, “Absolutely!”
So, last Thursday I picked up Baby. After a long goodbye with Melissa and some instruction on how to care and feed Baby, I was off. I had initially planned to drop of Baby in New York City that evening. My widowed father just happened to call as I was leaving and I shared with him the hair brained adventure I was beginning. He immediately said, “Bring that dog here, I want to meet her.” “OK,” I said. So I called Alexandra who immediately picked up and I told her that due to the late start I was getting I would not be in NYC until way too late, which was true and could we reschedule for Monday – done. And so the adventure began …
Are Managed Accounts Right for Your Portfolio?
One increasingly popular option among individual investors is managed accounts. A way to tap into resources normally reserved for the very largest investors such as pension funds, endowments and high-net-worth investors, these accounts offer access to a variety of portfolios and asset classes not ordinarily available to individual investors. “In many ways, this is the democratization of world-class professional money management, the type that previously was available to only a limited few,” says Ian Maceachern, Managing Director of the Advisory Products Group for Wells Fargo Advisors.
Inside Managed Accounts
You may find managed accounts especially pertinent when faced with the need to rebalance. The process of bringing your holdings back into line is a deliberate, measured one, not to be confused with tactical responses to evolving market conditions. But managed accounts may offer a way to blend the two, depending on the mix of elements you and your Financial Advisor select. Generally speaking, managed accounts are one way individual investors can gain access to money managers who typically may require minimum investments of $1 million —and $100 million isn’t unheard of. Supervised by teams of seasoned portfolio managers, managed accounts offer investment options including Mutual Funds, ETFs, and other investment vehicles. The varied menu of investments makes it easier to tailor a solution to your specific needs, goals, and time horizon. What’s more, managed accounts are readjusted automatically in real time. That means managed accounts can help you stay focused on your targets even when the market is enduring a volatile session (or month).
Making a Choice
Despite their impressive qualifications, managed accounts may not be right for everyone. For example, if you are an active investor who prefers to have a larger role in the day-to-day oversight of your investment portfolio, you may not feel comfortable relinquishing control (even to investment professionals). Managed accounts are also not designed for inactive accounts. However, that same quality may be what makes a managed account solution attractive to someone else who wants a portfolio designed to respond to day-to-day shifts in the investment market. The wide variety of choices managed accounts offer investors can also feel confusing, and some investors may prefer a simpler solution. Again, that same quality may be what attracts a different investor who’s seeking a degree of diversification that might otherwise be difficult to manage. “Not only do managed accounts make it possible to access world-class money managers, they give investors an opportunity to tap into a number of investment management styles to apply to their portfolios and goals,” Maceachern points out.
The costs involved can also play a role in determining whether managed accounts are right for you. First, check out the minimum investment required by the manager and make sure it’s within the amount you are willing to earmark for a managed account. “Your Financial Advisor knows your objectives and aspirations, so he or she is the linchpin in integrating a managed account, should you decide it is right for you,” Maceachern says.
Investments in securities and insurance products are: NOT FDIC-INSURED/NOT BANK-GUARANTEED/MAY LOSE VALUE. Wells Fargo Advisors, LLC, Member SIPC, is a registered broker-dealer and a separate non-bank affiliate of Wells Fargo & Company.