investment tools

“What investment tool I can use to make money like the rich people do?” a new client asked me. I could see he wasn’t looking for an in-depth financial education about how to identify great stocks. He just wanted a simple system he could easily follow to increase his chances of making money. 

Rich people work with top money managers

When I explained that wealthy folks don’t spend all day trading stocks, the client was relieved. He didn’t want to become a stock analyst or economic expert, and was happy to delegate the day-to-day financial decisions to a trained professional manager whose ultimate goal was the same as his: growth of the portfolio. 

The client asked a great question: “I don’t have a ton of money yet. How can I even access the same managers that the rich people have?” 

Luckily, today’s investment technology allows investors to access the same types of investment tools and institutional money managers that used to only be available to high-net-worth families. Many professional money managers are available for sums starting from $100K. 

One simple decision starts the process

“If I can really get access to the top-tier money managers,” he said, “what do I need to do now?” The answer, I said, was to decide how much money he wanted to put in the managed money portfolio. We discussed the pros and cons of dividing his assets between money managers and other investments like bonds and cash. 

After that, the rest is easy

Since the client was prepared to take on some risk with the growth portion of his portfolio, he opened a brokerage account and selected a specific money manager to oversee his assets. This way, he let the professionals take over all the day-to-day operations of the account. He could invest in the stock market without having to actually make trading decisions… he got just what he wanted! 

To learn more about money managers, watch this video clip: 

Douglas Goldstein, CFP®, is the Director of Profile Investment Service, Ltd., which specializes in helping people who live in Israel with their US dollar assets and American investment and retirement accounts. He helps olim meet their financial goals through asset allocation, financial planning, and using money managers.

Published August 10, 2018. July 2021

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