What does a Money Manager do?

What is a Money Manager?

A money manager is someone who helps clients look after their investments and suggests ways in which to grow the investments, so that the clients can reach their financial goals. If a client doesn't really know what their goals are and haven't thought about where they'd like to be financially in the future, the money manager will offer to sit down with them in order to help them define realistic goals and make some suggestions the client is comfortable with.

What does a Money Manager do?

A money manager will meet one-on-one with clients, act as a liaison between their clients and other financial institutions, gather information to present to their client in terms the client can understand, and research the various aspects of the market to stay up to date and well-informed. A good money manager can make a portfolio plan to specifically fit the individual's needs and can assess each client and their circumstances.

Here are some of the services that a money manager provides:

  • Monitor a client's assets and manage them, making trades when necessary
  • Keep clients informed about their assets and decisions being made
  • Provide reports of the client's portfolio activity available to them on a monthly basis
  • Give personalized service based on individual needs

Once the money manager and the client decide on specific investment goals, he or she will devise a strategy for how to reach those goals. This can be quite complicated if the client has a large amount of money to invest (a large portfolio). The money manager will have to balance the growth with a certain amount of safety, depending on how much risk the client is willing to take. There are thousands of investments to choose from, and the money manager will have to think very carefully about what will best suit the client, how many types of investments will be used and how much money will be put into each type of investment.

The money manager will make all the required transactions for his or her client. If it has been decided that a certain percentage of the portfolio is going into mutual funds or into stocks, the money manager will then help the client decide on specific mutual funds and/or specific stocks. They will then actively manage those investments, making trades when necessary on their client's behalf.

A money manager essentially tries to maximize a person's earning potential by making the best decisions possible through due diligence and extensive financial investment knowledge.

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How to become a Money Manager

Earning a bachelor's degree in finance and/or economics is the first step to becoming a money manager. This is a four year university degree. After getting this degree, the next goal is to become a certified financial analyst (CFA). This program will teach the student how to analyze investments and manage investment portfolios. Completing the CFA program exams can take as little as 18 months, but can take up to four years to complete.

As with many jobs, it is necessary to start with an entry-level position or work as an intern to get started. You can do this while going to school, giving you the hands-on work experience needed in order to learn all about managing other people's money. You may even find that the company you intern for will keep you on after you finish your schooling.

What is the workplace of a Money Manager like?

Portfolio managers will usually work for a money management firm or pension fund to select and manage investments which meet the goals of an individual or group of investors. A money manager can also work from a home office initially or from a rented office space. Insurance companies also hire money managers, as well as government institutions. The place of employment is usually based on the money manager's personal preference, but more than likely will be in a financial institution of some type.