Envestat Report: Should You Do It Yourself?

There are many reasons financial advisors consider outsourcing asset management to professional money managers—from the opportunity cost of time that could go into meeting with clients and prospects to the desire to avoid being measured primarily as a portfolio manager. One important factor to consider in making this decision to outsource portfolio management is the difference in client outcomes in each scenario. Volatility is a key part of this experience: like turbulence on an airplane flight, the bumpier it is, the more jittery passengers become. When it comes to investing, the greater the swings, the harder it is for many clients to keep to a disciplined investment strategy.