Paul Sullivan, in his weekly New York Times column, Wealth Matters, writes about understanding the philosophy behind your investment Portfolio, beginning as follows:
PICKING a financial adviser who understands what you want has never been easy. Broker or independent adviser? Lone wolf or team player? Holistic planner, numbers-crunching investor or backslapping golfer?
While always tough, the decision must now be more self-reflective: Do you understand what investment model your adviser is using and know if he or she has the skill to make good on what that approach promises?
In a new report, the consulting firm Casey Quirk evaluates four new investment models being pursued by financial advisers. While the report is intended for investment management companies, it contains valuable insight for investors who are trying to understand how their money is being managed and how their advisers are being paid to manage it.