Investment Management Training Will Strengthen The Skills Of An Investment Advisor

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By Cory Bowman

Every investment is a trade-off between current income and appreciation potential, which means that some compromise must be made. Investment management training helps an annuity specialist expand his or her asset knowledge. Financial investing involves a great deal of trust, so investors seek out a specialist with a deep understanding of annuity concepts. Trusts are a very common form of annuities, as the investments are delivered to the trustee in designated amounts over a specified time period. When setting up the details of a trust with an advisor, the client must make sure that the chosen trustee is not only honest, but also that he or she has the desire and ability to take on the job.

The client may decide that the trustee should have considerable financial expertise. Ideally, a trustee will possess a wide range of desired qualities; it is always important to keep in mind, however, that the trustee can always hire investment advisors. A trustworthy and motivated investment advisor is an invaluable part of an investment team. Investment management training leads to certification for many financial advisors, who are then prepared to assist and guide any investor or trustee on asset management. Different types of ongoing trusts raise different concerns when it comes to choosing a trustee. Legally, a client can name two or more people to serve as co-trustees. However, having two or more people serve as trustees for a trust that may last a long time can lead to serious conflict or confusion. If co-trustees are appointed, the client must decide how they will share authoritywhether each can act separately for the trust or whether all must agree in writing to act for the trust.


More significantly, a client should be certain that the trustees are cordial with each other and get along. Sharing power and property can lead to unexpected results and arguing, which can lead to legal trouble. If co-trustees cannot agree on any given matter, they could end up in court. This would use up trust money, but the end result might be worse, accumulating more hostility. Financial planners with a deep knowledge of annuity concepts work to decide upon the best options for the trust. Clients should consider in advance how such disagreements would be resolved. For example, if there were three co-trustees, a majority vote could decide. If there were two or four co-trustees, the toss of a coin could break a tie vote. The trust could also be quite specific and call out who would be in charge of specific decisions. For example, Matters related to XYZ property securities will be decided by John Smith and matters related to XYZ apartment upkeep will be decided by Helen Jones.

If there is no person a client has confidence in, he or she will have to select a financial institution as the trustee. And, with certain types of property, such as oil and gas interests, beneficiaries can benefit from professional management. When possible, if an individual cannot be found, the client should use a private trust company, which employs financial specialists who have completed investment management training. These companies tend to be smaller and more personal than banks, and emphasize a greater focus on trust management and annuity concepts.

About the Author: Cory Bowman is Director of Ops at the Institute of Business Finance. IBF has helped thousands of members of the financial services industry attain designations. For more information about

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