First of all the couple should be able to understand the concepts and basics of the aspect of assets management. It is important that they understand the operations of asset management and the various implements it uses. This involves knowing the attributes of the electronic banking system as well as how it will be beneficial to their savings as well as their checking and savings account. Asset management companies are basically involved in managing of different types of assets for their clients which in most instances is in form of money. They major advantage is the extent to which they reduce the risks of losing money by pooling the money of many clients and professionally investing in different areas such as stocks and bonds. In essence their choice of investment is based on intense research and knowledge of the dynamics governing the money market. The field of asset management is flooded by many companies some of which are either fraudulent or not competitive. It is for this reason that the couple should not only know where to get asset management services but also how to get the most competitive services. Asset management is basically a financial service. It can be offered by companies that exclusively specialize in the area or financial institutions that include the aspect in their portfolio such as some banks. The best way to approach the issue is by contacting their respective banks for recommendation and then proceeding to carry out their own study depending on the history of the firm’s recommended the amount of fees their charge and the interest earned. Other examples of asset management firms include depository institutions, stockbrokerage firms and firms that deal with mutual funds.
The couple already have the relevant tools that will enable them to seek the services of an asset manager especially when they want to save for a house. They both have checking accounts from where they can obtain the money for their expenses as well as savings account. It is important that in the event that the income becomes more than the expenses that this money is invested wisely. Mark already has a certificate of deposit from an inheritance worth $10,000 that is expected to mature in five months. This means that he already has money in the asset management field. Trina has also inherited stocks in a brokerage firm that was left for her by her father; in addition she has an individual account where she has invested through a mutual fund. This means that this couple has a lot to start with in terms of asset management because they already have long term investments.
After the couple gets married their expenses will be shared and because they have even agreed to move in Trina’s apartment, they will be able not only to save on rent but also to save on some other expenses. As they start to save for a home they have various options. Mark has inherited money in certificate deposit while Trina has money in stock brokerage firm and she has also invested in a mutual fund. These are the areas of asset management that the couple have engaged in. They can either decide to use the money they have saved as a result of shared expenses to strengthen these areas or venture into other areas of asset management. Both areas have advantages and disadvantages. When they invest in the portfolio that they already have it might be risky, however it might also be helpful because they already have confident with the respective institutions and will only be required to top up their savings with them. Diversification can also be risky because it will constitute venturing into a whole new area which might be time consuming to understand, securing a dependable firm can also be hard.
The use of money market account by the couple is a wise financial move considering that they have future plans. They all have other commitments that cannot allow them to get involved in a business that will be time consuming. In this case by opening a money market account they transfer this responsibility to a given institution. Basically the money invested in this way is money that is not needed presently; therefore they can use this money market account for their monetary asset management provided that the institution is trustworthy. The major advantages of the money market account are the high amount of interest earned and the fact that it greatly reduces the risk of losing money. The money market account is an investment unlike other conventional accounts which are used for saving money. As a result it provides restrictions on issues such as withdrawal of money thereby providing discipline against the constant temptations to spend money. In other words the liquidity of the money is greatly reduced. Money market account allows for one to withdraw, there are restrictions on how many withdrawals that can be made within a month. Furthermore the institutions involved discourages combined withdrawals below a certain minimum amounts by imposing penalties. All this aspects combined ensures that the money market account remains a long term investment.
Electronic banking has revolutionized financial transactions in the sense that it has reduced the lines that were previously commonly seen in banking halls. This was both tedious and time consuming. With the touch of a button the couple can transfer money from one account to another, instruct the stockbrokerage company either to sell or buy their shares or upload funds in the mutual account. The couple can greatly make use of electronic banking to improve and hasten the dealings of their checking and savings account; this can help them to take advantage of the good deals that present themselves on the short term basis because distance will not be an issue. However electronic banking also requires caution due to the constant fraud and theft cases involved with ATM, Debit Cards and Smart Cards. The couple should be careful that they do not reveal the Pin numbers of their cards to anyone. Furthermore whenever a card is stolen they should call the card company immediately and cancel all the transactions.
The best ways for the couple to discuss the management of their money and other finances is first of all by keeping records and updating whenever changes are made. From this perspective, the couple can come with a plan governing aspects such as monthly expenses, combined future plans and individual plans. With this background they can therefore discuss the management of their finances or get the services of a professional if need be.