How to Make the Right Decisions for You

How to Make the Right Decisions for You

Whilst real wage growth and disposable income levels have become increasingly constrained in the UK, there are some cities whose households have a little more money to spend than others.

Take Newcastle, for example, where rent and other living costs of up to £12,460 more than compensate for the fact that is has lower starting salaries than London, Bristol and Southampton. In total, Newcastle residents have an extra £10,364 to spend each and every year, compared to Londoners who only have a disposable income level of £1,078 on average.

Regardless, it’s clear that households and individuals needs to manage their assets carefully and make informed financial decisions if they’re to prosper in the modern age, and to achieve this they’ll need to understand the different ways to manage investments. Here are some of the most popular options that investment management firms provide:

  • Discretionary Investment Management Services

Let’s start with discretionary investment management services, which represent the most popular option amongst everyday individuals and those who are new to the concept of managing assets.

This type of service can also be leveraged by individuals who lack the time (rather than the expertise) to make and manage your funds, as you’ll work directly with skilled wealth who help you make the best investment management decisions.

This relationship will start when your wealth manager discusses your needs and develops a clear understanding of your core objectives and appetite for risk, before they devise a tailored investment strategy that fits your exact profile.

It’s also important to note that discretionary wealth managers are fully responsible for all investment decisions pertaining to your account, and they won’t require your consent to make a call.

  • Advisory Investment Management Services

Next we come to advisory investment management services, which are typically offered by larger, private banks and institutional firms.

However, they can also be offered by standard wealth management firms, in order to target more seasoned and high-stakes investors with an understanding of the financial markets.

With this type of system, you’ll make the final decision on any investment selection, or at the very least approve the suggestions made by your advisor.

However, you wealth manager will provide regular updates and offer investment recommendations according to your profile, and this can be an excellent resource for busy account holders.

  • Execution-only Investment Management Services

In the case of execution-only services, your chosen firm will carry out all investment decisions directly on your behalf.

Through this method, you simply provide instructions to your wealth manager and maintain full control over your portfolio. So, whether you want to buy or sell particular assets, you’ll make the final call and pass this on for others to execute.

Of course, your wealth manager may provide some assistance in the forms of market insights and analysis, but it will be your job to process this before deciding how to act going forwards.

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