After the slaughter of the Dot.com bust and stock market free-fall, many people took managing their investments into their own hands. Mergers-and-acquisitions lawyer Susan Pravda recalls, “I had a money market fund here, a stock brokerage account there, and a bunch of 401(k) plans floating around.” Even she had excellent returns, Pravda still wonders whether she might have fared better if she had followed her own advice to clients, and hired a pro to help her devise a custom portfolio.
For many professionals, whose careers and family responsibilities demand time and attention, tackling complex financial tasks–such as building an asset allocation model or a long-term wealth plan — may get pushed to the back burner and stay there, even as their wealth levels grow.
Recognizing this, more financial institutions are particularly targeting women as potential clients, offering to professionally manage their investment portfolios. Putting all your money in someone else’s hands can be unnerving. Do your research and thoroughly understand, who’s managing your money. Full article