At Clarus, we offer specific investment advice for those who want professional guidance and are at ease with implementing rebalancing instructions. However, we recognize that some people reach a point where they are more comfortable delegating than implementing the investment changes each year. When that time comes, a thoughtful, deliberate review of investment managers, including “Robo-Advisors,” is in order.
Robo-Advisors are online investment management firms which provide portfolio management at a fraction of the cost of the typical investment manager. For clients who are looking to delegate their portfolio management, robo-advisors such as Wealthfront or Betterment should be considered alongside the traditional investment management firms.
In order to determine the best investment management firm for your needs, we start by considering what is most important to you as we compare the following:
- General Firm Information: Firm size, location, year founded or advisor experience level, personnel qualifications, fiduciary obligation, custodian/platform
- Investments: Investment style, products used, allocation models, use of Investment Policy Statement, rebalancing procedures, tax planning and tax management
- Fees: Annual management fees, internal product fees, other
- Other Considerations: Website/technology in use, ease of reading client statements, client communications and responsiveness, availability and cost of trust company integration
If you are reaching that point where you no longer enjoy implementing our annual rebalancing instructions, or if you’ve inherited a portfolio you don’t want to manage, contact Clarus to begin the investment manager search.