Even though financial planners and fund managers do not provide the same services, their professional roles intersect to a certain extent, specifically with regard to the personal benefits they provide to their clients. When you retain financial planners to help you figure out how your money should be invested, they may recommend a fund manager in Dallas to help you reach your investment horizon.
In the world of financial planning, an investment horizon refers to how long you plan to hold onto your investments before an absolute need rises to access the money. This horizon is a crucial factor that financial planners consider when crafting an investment strategy for you, and it often involves selecting a fund where your money can grow. A young family in Texas with a comfortable dual-income situation, for example, may plan for a long investment horizon with a growth fund that actively seeks new market opportunities. This is the kind investment that a fund manager in Dallas structures to generate more income during the couple’s younger years, but this would assume that the couple will continue to generate adequate income.
For an older couple in Texas, a financial planner may also recommend an investment fund strategy, but it would have to be conservative. The risk tolerance of individuals planning for retirement must always be lower because capital preservation takes precedence over high growth. The fund manager in this case will structure the portfolio with securities such as bonds or dividend-paying stocks that provide regular payouts; this will ensure that the couple has some income in addition to pension payments.
For more information about fund management, please visit Westwood Wealth Management today.
