A good investment management consultant can help you with...

A good investment management consultant will guide you and work with you in a logical, step-by-step process of developing and executing a sound investment plan. Specifically, an investment management consultant can help you:

• Analyze the past performance of your investment portfolio - not just how well individual managers and funds have done, but how well you have done overall.

   

• Thoroughly assess your investment needs, including tax considerations, current income and future capital requirements.

   

• Come to grips with your true tolerance for risk. Until they suffer big losses, people tend to believe they are more risk-tolerant than they really are.

   

• Strike a realistic balance between risk and reward so that your expectations are within the realm of probability, based on historical investment returns.

   

• Resolve family issues from spending habits to inheritance.

   

• Address such issues as active vs. passive management (indexing), domestic vs. international stocks and bonds, number of managers, etc.

   

• Test varying asset allocation mixes against your investment goals and arrive at a strategic level of diversification among asset classes and investment styles.

   

• Simulate the likely best- and worst-case scenarios of any given asset and style allocation mix, so you are better prepared for the unexpected.

   

• Explore the use of futures and options, short selling, commodities and hard assets.

   

• Determine the quality and duration of fixed-income investments.

   

• Gain control over scattered assets, consolidating investments and eliminating unsuitable vehicles.

• Interview and hire suitable managers based on a set of selection criteria tailored to your personal needs, temperament and biases.

   

• Look critically at manager fees or trustee arrangements and, when appropriate, negotiate more reasonable terms.

   

• Measure individual managers' results as well as total portfolio returns against the right benchmarks.

   

• Decide when to fire a manager who is not giving you the results or the service you want.

   

• Monitor the entire investment process - including income flows, savings, cash needs and investment returns - and identify potential trouble spots.

   

• Make tactical shifts in your investment plan when warranted by changing economic conditions.

   

• Make major strategic revisions to your plan if your needs, goals or circumstances change.

   

• Keep your emotions in check during turbulent times