How to Find the Right Investment Firm for Your Assets with Grays Peak Capital LP’s Scott Stevens

Asset management is an important factor that influences wealth creation and preservation

Picking the right investment firm can multiply your assets and help you create greater wealth. Picking the wrong one can hurt your prospects. You could also decide to go at it alone, which is another way of managing your funds. However, picking the right investment firm means giving your assets over to a team that has expert knowledge and experience in the investment and asset management field. So, how do you decide which investment firm is right for you? Scott Stevens, partner at Grays Peak Capital LP, offers three considerations to evaluate when determining the right investment firm to manage your assets.

What is Your Net Worth?

This may sound like a simple question, but it has profound implications on the type of investment firm you should work with. For example, if your net worth is lower than $100,000, says Scott Stevens, you are probably better off investing the money yourself. Most investment firms have fees, and if your assets cannot absorb these fees, you may end up losing out in the long run. Some investment options you can consider are robo advisors and discount brokers. If you have assets of between $100,000 and $1 million, you may benefit from working with a full-service broker, asset manager, or wealth management firm. The bottom line, says Scott Stevens, is that your net worth determines the type of investment firm you should work with to maximize your returns.

What is Your Investment Horizon?

Time is another important aspect when picking an investment firm for your assets. If you are young, let’s say in your twenties or thirties, you have quite a bit of time available to invest. As such, you should look for investment firms that offer mid to long-term investment services. Also, you may consider working with a wealth manager or financial planner to help you also manage the income side of your finances. If you are older and have a larger asset base, says Scott Stevens, you need an investment firm such as a money management firm that can help you maximize your short-term gains while preserving your assets.

What are your Investment Goals?

This is the third factor that will influence the type of investment firm you pick. Investment goals vary. For some, the goal may be to secure a down payment for a home. For others, the goal may be to preserve intergenerational wealth. Others may want to invest money coming from a business’s profits. Each of these goals has different dynamics that influence the investment style and asset management process. For instance, if your goal is to preserve inter-generational wealth, a discount brokerage would be a poor choice. A better choice according to Scott Stevens, would be a wealth management firm. So, depending on your goals, interrogate each investment firm to find out which one will help you best achieve them.

Scott Stevens’ Final Thoughts

Your net worth, investment horizon, and investment goals matter when it comes to picking the right investment firm for your assets. However, other factors you also must consider include fees, team composition and experience level, and historical performance. Always remember that making the right investment choices takes time, so do take your time as hasty investment decisions may cost you dearly in the long run.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store