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You outsource your accounting, recruitment and I.T., but how do you outsource creating personal wealth?

Professional advice and some outside administration support can play a part in developing and managing your investment portfolio.

Investment advice is usually a mix of your personal views and judgements, combined with the ‘outsourced’ objective input of a professional adviser.

While your own efforts at administering your portfolio usually start out with the best of paperwork-filing intentions, due to personal time restraints it usually succumbs to the ‘shoe box’ approach, where all the paperwork is ‘filed’ somewhere or other. Your professional adviser, however, should be able to offer you an outsourced administration solution.

Professional Advice

Advice can be broken down into initial strategic advice and ongoing tactical advice. While personal intuition and commonsense are important inputs to the development of an investment portfolio, the growing complexity of the investment world means professional advice should also be involved, if only to reduce the risk of getting an investment decision wrong.

A financial adviser can give you the strategic edge because of their knowledge, experience and expertise in areas such as investment products (for example, listed Australian stock exchange shares and international managed funds), superannuation rules and regulations, and the impact of the tax system on investments.

The main advantages of outsourcing financial advice are the regular reviews of your investment portfolio, the markets in general, and new investment opportunities. This ensures you take advantage of any changes in products, tax law and superannuation rules.

Portfolio Administration

Administration of an investment portfolio is about the execution of an investment strategy and the ability to access all relevant information on a timely basis for ongoing review or monitoring.
The best portfolio administration services offer you and your adviser the collection and recording of all investments and dividends, instantaneous transaction capability, and a comprehensive array of portfolio reports, accessible 24–7.

The Managed Portfolio Service (MPS) is an example of the evolution of portfolio administration services. MPS is an individually managed account service that allows the financial adviser to tailor individual investment strategies for a client and deliver superior after-tax investment portfolio outcomes. 

* This article is for general advice only. We have not considered your relevant circumstances. Before acting on this advice you should contact your investment adviser.

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