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4. Failing To Monitor Your Managers
Things change. The economy changes. The political environment changes. Your goals, needs and risk tolerance may change as you mature. Choosing a manager is just the beginning of a long term relationship. Your plan and your managers need to be monitored over time to be sure that they are still working for you.
Both your plan and the performance of your managers must be monitored and reviewed regularly. At WrapManager, your Advocate continually monitors manager performance and reviews each client’s plan on a quarterly basis to be sure both are on track. If your plan is off track we can suggest adjustments. If a manager needs to be replaced, we replace him.
Since investing is a long term activity, your plan may change over time. Your life may change in unexpected ways, for better or for worse. Children, divorce, career advancement, disability, inheritance, and a host of other things could change your goals or your risk tolerance. Your plan needs to respond to the changing realities of your life and adapt to serve your changing needs.
Even the best manager relationships may someday end. Sometimes a manager’s performance deteriorates or they drift from the strategy that made them successful. Sometimes, you reach your goals and the manager’s strategy is no longer a good match for you. Since we work for you — not for the asset managers — your WrapManager Advocate won’t hesitate to recommend a change when it is appropriate for you. We have access to hundreds of managers and can always find one that meets your needs.