How you manage your investments can make a huge difference in how much you end up with in the future. This is what investment management is all about.
In this guide, we’ll talk about what investment management really is, how it works, and the benefits of working with an investment management firm like Griffiths, Dreher & Evans, PS, CPAs.
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What Is Investment Management?
Professional investment management is the strategic handling of your investments by a financial expert or firm to help you reach specific goals. It includes:
- Setting financial objectives
- Building and managing a diversified portfolio
- Monitoring performance and adjusting over time
- Minimizing taxes and managing risk
Professional investment managers, whether individuals or firms, handle this entire process on your behalf. They bring financial expertise, research tools, and often access to investment opportunities that individual investors don’t have. Many are also fiduciaries, meaning they’re legally required to act in your best interest.
Investment Management vs. Asset Management: What’s the Difference?
The main difference between investment management and asset management comes down to scope.
Investment management focuses specifically on financial investments, like stocks, bonds, mutual funds, and ETFs. The goal is to grow your money through a strategic, goal-based investment plan. This includes building a portfolio, managing risk, rebalancing over time, and aligning everything with your personal objectives.
Asset management has a broader scope. It includes everything you own, not just investment accounts, but also real estate, business interests, and other tangible assets. Asset managers look at your full financial picture to preserve and grow your total net worth.
If investment management is about growing your investment portfolio, asset management is about managing your entire pool of wealth.
Why Hire an Investment Manager?
A qualified investment manager brings professional structure and strategy to your money, not only helping you get the most out of your investments but also protecting them. Here are six benefits of working with an investment management firm:
1. Expert Strategy
Anyone can buy a few stocks. But a professional investment manager builds a comprehensive, personalized strategy around your financial goals, whether that’s saving for retirement, funding your child’s education, or building wealth after a business sale.
Investment advisors use real data, economic forecasts, and deep market research to guide decisions, not hunches or trends. For example, if you’re a business owner preparing for a liquidity event, your manager can structure a plan that minimizes tax hits and repositions your cash for long-term growth.
2. Full-Time Oversight
A professional monitors your portfolio daily, ready to rebalance or pivot when needed. That’s especially valuable when the unexpected hits: a market downturn, a layoff, or a sudden inheritance. Instead of constantly checking your portfolio or stressing about the next rate hike, your advisor adjusts your strategy behind the scenes and walks you through the “why” when it’s time.
3. Risk Management
Good investment managers don’t just chase returns; they protect your downside. That means adjusting your portfolio as your goals shift, the economy changes, or you enter a new life stage.
If you’re in your 30s, you might benefit from a more aggressive allocation. But as you near retirement, your manager can shift you toward more stable assets to protect what you’ve built. They also watch for concentration risk, overexposure to certain sectors, and missed rebalancing.
4. Tax Efficiency
One major advantage of working with a CPA investment advisor, like our professionals at Griffiths, Dreher & Evans, PS, CPAs, is that they integrate your tax planning directly into your investment strategy*. Unlike many financial advisors who focus solely on portfolio growth, CPA advisors take a holistic view of your finances, optimizing for after-tax returns, not just market performance. This means smarter decisions around when to realize gains, how to use losses, and which accounts to draw from in retirement.
For example, they can help you avoid unexpected tax hits from capital gains distributions or coordinate your investment withdrawals with tax-efficient retirement income planning. When your tax and investment strategy are aligned under one roof, you get a plan that’s not only strategic, but also more financially efficient.
5. Time Savings and Peace of Mind
An investment advisory saves you time by handling all the moving parts, including researching investments, rebalancing your portfolio, keeping up with market shifts, and making strategy adjustments when needed. You don’t have to constantly check the market, stress over headlines, or wonder if you’re making the right call.
Instead, you have a plan in place and a professional who sticks to it. That kind of structure brings peace of mind. You know your investments are being managed with care, so you can focus on everything else in life, without second-guessing your financial decisions.
6. Complete Financial Guidance, All in One Place
A good investment management firm does more than just manage your portfolio. They become a central hub for your entire financial life. This is especially true when you work with a firm that also offers tax planning, retirement strategies, and business advisory services under one roof.
Say you’re selling your business in five years, planning to retire at 55, and want to leave a charitable legacy. An investment manager can bring in the right professionals, structure your investments accordingly, and make sure everything works together.
What’s Your Financial Priority?
Are you preparing for retirement? Building wealth for your family? Managing a business exit? Whatever your financial priorities are, our investment advisory team is here to help you move forward with clarity and confidence.
At Griffiths, Dreher & Evans, PS, all our shareholders are CPAs with most possessing the Personal Financial Specialist (PFS) credential, a designation only awarded to CPAs with advanced training in personal financial planning. Call us to book your FREE, NO-OBLIGATION discovery meeting today*.
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Frequently Asked Questions
How do investment managers get paid?
Most charge a percentage of assets under management (AUM), while others may offer flat fees or hourly rates. Always ask for a clear explanation of fees before you commit, so you understand what you’re paying and what you’re getting.
What’s the difference between a fiduciary and a regular advisor?
A fiduciary is legally obligated to act in your best interest. Not all advisors are fiduciaries, so working with one, like a CPA investment advisor, can give you added peace of mind that your goals come first, not commissions.
Can investment managers help with retirement income planning?
Yes, and they should. A good investment manager will help you shift from saving to withdrawing in a tax-smart, sustainable way, factoring in Social Security, required minimum distributions (RMDs), and long-term income needs.
How do I know if I’m ready to work with an investment manager?
If you have financial goals, uncertainty about how to get there, or simply want to be more strategic with your money, it’s a good time to talk to a professional.
*DISCLAIMER: Investment advisory services are provided by Griffiths, Dreher & Evans, PS, CPAs, a registered investment adviser. Past performance does not guarantee future results. Planning outcomes depend on individual circumstances.