Myth #6 Fallacy of the Separately Managed Account
Financial Myth’s Blog Series
Unfortunately, much of the information relating to money that permeates our thinking as individuals and as a society is based on myths. This misleading information has no factual basis and can actually prevent us from achieving our financial objectives. This week we’re dealing with the fallacy of the separately managed account.
Follow along with us through the Financial Myths Blog Series. You may be surprised by what you discover about yourself and your financial plan!
Myth #6 – Fallacy of the Separately Managed Account
Have you been told that a separately managed account is the best investment?
They have their place, but like all things, there is the good, the bad, and the ugly to consider.
Do not assume that a managed account is the best solution for your portfolio.
It may not have good diversification, adequate management, or fit your investment philosophy. For example, Mutual funds generally have better diversification and allocation than managed accounts. Which ultimately reduces a fair amount of risk in a portfolio. Other options include ETFs, mutual funds, individual stocks, or alternative investments.
No matter how you invest your money, a few key aspects include allocation, risk tolerance, and overall fit. Another important consideration is whether a portfolio is sustainable and able to provide the necessary cash flow to fit your needs. Is the cost realistic? These questions are much more essential than the type of investment chosen.
So, find options that fit you, and don’t believe everything Wall Street touts.
Forget the cookie-cutter solution, and find a financial planner that can craft a portfolio that enhances what’s important – your family, lifestyle, recreation, and occupation. After all, it should be about you!
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