Implement, Coordinate and Oversight of Financial Plan and Investment Strategy
The primary function of the financial advisor is to set the overall financial plan and investment management strategy that coordinates the efforts of more specialized advisors. For instance, a money manager is delegated to the task of maximizing returns for specific asset class strategy/style parameters designated by your investment management strategy. Through the selection, allocation, monitoring and reassessment of the portfolio money managers over time you stay on course towards your True North.
A financial advisor has the responsibility to identify steps and activities necessary for the implementation of the financial plan and investment strategy which may include, but are not limited to, the following:
Those professional advisors designated as a part of the implementation team need to acknowledge and accept their responsibilities. Client authorizations need to be provided to members of the professional advisory team to facilitate the sharing of information necessary to implement the financial plan and investment strategy. For example, a money manager would require copies of trust documents to open an investment account. Perhaps, duplicate copies of an investment account might need to be provided to an attorney.
Coordination and oversight of your financial advisory team efforts can greatly impact the likelihood you reach your True North. The potential benefits include:
- Greater income tax efficiency;
- Proper title, beneficiary and trust designations for estate plan asset distribution;
- Continuity of investment management; and
- Better communications with heirs.
