Three Ways COVID-19 Changed Mergers and Acquisitions

“The most important thing is not economics. It’s the culture fit,” explains Homrich Berg CEO Andy Berg in Schwab’s latest Advisor Services piece on how mergers and acquisitions have changed over the past few years. Read the article here.

RIA Industry M&A: Behind the Numbers

Have you read Schwab’s “RIA Industry M&A: Behind the Numbers” report? Our own Sammy Grant, principal, and Andy Berg, CEO, share insight into what works in attracting and retaining top talent in a post-Covid world.

How Organic Growth Is Powering a Pioneering RIA

32 years ago our CEO Andy Berg was a pioneer with his business partner in the RIA space. He joined Barron’s Advisor podcast “The Way Forward” to discuss our organic growth over the last 3 decades & more. Listen now.

What is the Russell 2000 Index, and Why Should You Care?

“With innovations over the last several decades and the growth of ETFs and index funds, decreased commission costs, and increased market liquidity, it’s become easier to get access to this index, which I think is an important part of a diversified portfolio,” director Ford Donohue, CFA says of the Russell 2000 in an article by Erin Gobler at Next Advisor

HB Named to Financial Planning’s Top 105 Fee-Only RIAs

Financial Planning’s list of Top 150 Fee-Only RIAs is chosen based on an examination of the industry’s highest ideals, which is why we are honored to be included! See the full list here.

Dow Up More Than 500 Points as Stock Markets Turn Positive for the Week

Markets are confident coming off this week’s Fed meeting but will fear of a collapse of China’s largest property developer influence investors? Our CIO Stephanie Lang, CFA weighs in via The Wall Street Journal 

Your Finances Took a Hit From the Pandemic. Here’s What You Do Now.

Even if your finances took a hit during the pandemic, there are steps you can take to right the ship. Donna Trainor, CFP, CFA, senior associate at Homrich Berg, discusses how preparing your finances for tax season is one of the most important steps to take in Ron Lieber’s NYT piece.

Homrich Berg Named to Barron’s 2021 Top 100 RIA Firms

Homrich Berg is proud to announce being named to the Barron’s Magazine 2021 list of America’s Top 100 RIA Firms. HB is #41 on this list of the top independent firms in the country based on their proprietary ranking criteria, which include some new criteria: technology spending, staff diversity, and succession planning. Here is a link to the full article.

Wealth Management vs Investment Management vs Asset Management – Which Do I Need?

Digging into your finances can be overwhelming, and as you start to consider who to work with as your financial advisor it can quickly get confusing.  Some firms talk about wealth management, while others talk about investment management or asset management.  Which kind of manager do you need, and what kind of management will you receive based on your selection?  Let’s dive into the differences to help you understand the different kinds of financial management available.

Asset Management

If you are a DIY investor and you already have a financial game plan as well as an overall investment allocation plan, you may only be interested in finding an asset manager.  Let’s say you have built out your wealth forecast and you know what level of risk and return you are targeting — and you have determined what asset allocation mix of stocks, bonds, and alternatives will get you to that target.  At that point you may be looking for a specific manager to implement part of your strategy.  If you know you want to be 20% in municipal bonds you may then seek out a municipal bond asset manager who manages a portfolio of bonds for you.  Asset management typically involves managing a specific strategy inside a specific asset class, although it could involve multiple asset classes.  Asset managers are typically just executing on a strategy that they have already developed, and they depend on you to determine if you want to use the strategy and then use them as the manager.  Typically asset managers are not working with you on your overall asset allocation — think of them more as product managers who are lined up in the asset store waiting to be chosen once you have decided what you want in your portfolio pie chart.  Selecting an asset manager can be tricky, given that past performance is not the only metric you will want to use when choosing a manager.  For this reason, many people choose to at least move one step up to Investment Management.

Investment Management

If you think you have your financial life plan pretty well laid out and you know what kind of risk and return you want to target, you may be a candidate for Investment Management services.  Banks, brokers and registered investment advisers all can offer investment management services.  It is quite common for banks and brokers to lean more toward investment management than wealth management, although that has changed over time.  Investment management is narrowly focused on building your portfolio game plan and executing that plan using various strategies and asset managers.  The advisor may work with you to assess your risk comfort upfront, and hopefully will ask you questions about your goals and desired returns even though they will not typically dig into that analysis with you because they assume you already have it figured out.  Their primary job is to invest your money in various places and report back to you on how it is doing.  If you want financial help beyond just someone investing your money in some assets, then Wealth Management probably makes more sense for you.

Wealth Management

Here at Homrich Berg, our primary focus is on full service comprehensive Wealth Management.  We believe this is defined by providing advice on all aspects of your financial life.  This includes investment management but also includes financial planning topics.  We do have a few clients where we really only provide Investment Management services (primarily nonprofit foundations and institutions), but our core service offering is true Wealth Management.  We believe in the importance of marrying good financial planning with good investment management, and starting with a financial game plan to ensure that the investment management plan truly aligns with the goals of the family.  The first step in financial planning is building your family wealth forecast to map out your likely positive and negative cash flows from income and asset sales and life events ahead.  Financial planning can also include estate planning, charitable planning, retirement planning, tax planning, insurance planning, education planning, and multi-generational planning. The beauty of comprehensive wealth management is that no questions are out of scope, and the services are always available to you when you need them as your life changes.  No plan is set in stone because life is always surprising us with new opportunities and challenges.  Your Homrich Berg financial advisor is always there to help you dig into any of these topics as they suddenly become important based on changes in your life or changes in the world around us including tax laws.

Hopefully this short summary helps you understand the world of financial management and the differences between asset management, investment management, and wealth management.  Feel free to contact us to learn more about how our services might be a fit with your specific needs at any time using the contact us form on our website.

 

About Homrich Berg

Founded in 1989, Atlanta-based Homrich Berg is a national independent wealth management firm that provides fiduciary, fee-only investment management and financial planning services, serving as the leader of the financial team for our clients including high-net-worth individuals, families, and not-for-profits. Homrich Berg manages over $10 billion for over 2000 family relationships nationwide. For more information, please visit www.HomrichBerg.com.

This information reflects Homrich Berg’s views, opinions and analyses as of 09/23/21 unless otherwise indicated, with no obligation to update. The information is provided for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any investment product. The information does not represent legal, tax, accounting or investment advice; recipients should consult their respective advisors regarding such matters.

Slower Growth in Q3 Due to Delta Variant and Supply Chain Shortages

CIO Stephanie Lang, CFA joining Bloomberg BNN to talk about today’s CPI data, and other risks to the market. The good news? Watch the segment to hear what she has to say.