The Two Worst Mistakes Advisors Make When Hiring a TAMP
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A turn-key asset management program (TAMP) provides many benefits, but you must choose wisely and select one that is a good fit for both you and your clients.
There are many ways to go wrong in choosing a TAMP. Here are two no one is talking about.
The first mistake: Investment management is not a commodity
A TAMP manages money for the clients of financial advisors. TAMPs provide many ancillary services, but the heart of its offering is asset management.
It is fashionable to say that asset management is a commodity. Believing that, and acting upon that belief, is a mistake you should avoid. Both you and your clients will pay dearly if you fail to heed this warning.
Investopedia defines a commodity as “a basic good used in commerce that is interchangeable with other goods of the same type…The quality of a given commodity may differ slightly, but it is essentially uniform across producers.”