Category: Planning

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Commercial Loan Structuring

When businesses need money to buy a new piece of equipment or to fund short-term operational costs, they’ll most likely consider taking out a commercial loan. A commercial loan is credit that’s typically extended to businesses, such as partnerships and corporations, which are looking to fund a particular expenditure (e.g., new equipment) or another specific business purpose. 

This debt typically involves a security, meaning businesses might be required to submit their financial statements or put up a collateral, which can be equipment, other business property, or even accounts receivables. The most common types of commercial loans include lines of credit, term loans, commercial mortgages, and acquisition loans. 

Now with each commercial loan comes specific terms that the business as a debtor must abide by. These terms include the purpose of the loan, its amortization period, the repayment schedule or interval, the loan collateral, and the interest rate. All of these compose the commercial loan structure. 

What is commercial loan structuring?

At its core, commercial loan structuring is a matching game: Commercial lenders identify the needs of the business and its repayment source and compare those with the available financing options that fit. A loan structure is designed to cater to the needs of both the lender and the borrower. The business receives the funds it needs, while the lender is protected from risks and potential losses should the business default on its payments. In short, it provides a win-win solution to both parties.

According to the Risk Management Association, commercial lenders make use of four keys to come up with the best loan structuring possible for each business borrower. The first two are the goals of the bank or commercial lender and those of the customer or debtor. The third key is the source or sources of repayment and the competition the lender faces for them, and the fourth key are the loan elements that the commercial lender or bank deem are appropriate for the other three keys.

The components of a commercial loan structure

A commercial loan structure consists of the following components. When people talk about commercial loan structure, this is what they typically mean.

  • Loan term – This is the period in which the business has to repay the loan. This period is determined by the lender.

  • Interest rate – This is the amount the lender charges the business debtor and is usually a percentage of the principal loan amount.

  • Credit risk – Simply put, this refers to the probability that the lender won’t receive the loan repayments from the business. That is, the debtor or borrower has defaulted on the loan or failed to pay for the principal and interest owed to the lender. In addition to financial loss, high credit risk also increases collection costs.

  • Loan collateral – This is a valuable item that a business pledges as security for the loan. A collateral reduces the risk of the debtor defaulting on the commercial loan as it can be sold so that the lender can recover its losses.

  • Repayment – This refers to a period in which the business can pay back the principal and the interest of the loan. Commercial lenders typically ask about the business’ source of repayment and if it has alternative sources of repayment.

Factors that influence commercial loan structuring

There are several factors that influence how a commercial loan will be structured. These are as follows: 

  • Purpose of the loan

For what purpose is the business taking on the commercial loan? It could be to reduce an existing term debt or so that the business has revolving credit available.

  • Risk profile of the business

Is the business more likely to default on its loan repayments? This is the question that commercial lenders seek to answer when assessing a business’ risk profile. They do so through complex models that help them determine the risk rating of a borrower. Normally, the higher the risk rating is, the greater the possibility of that debtor to default on a repayment.

  • Ability to pay the repayments

Does the business have the ability to fulfill the payments within the loan term? Where does its repayment funds come from? Does it have other sources it can tap to fulfill the loan repayments?

  • Desirability and useful life of the collateral

Most commercial loans require collateral, and this influences the loan structure too. In this case, the commercial lender will check the quality of the asset. The higher the asset’s quality is, the more desirable it is, and as a result, the loan structure will be more flexible. The collateral’s quality is determined by how likely it will retain its value, how active the secondary market is, and if its price can be ascertained easily.

  • Transaction or asset-specific risks

This covers the details of the loan agreement. For instance, should a loan covenant be in place to safeguard the interests of the commercial lender and if yes, what should the covenant include? Basically, anything that the lender finds is risky, it can try to mitigate through the terms or covenants included in the commercial loan agreement. 

Why is loan structuring important?

Loan structuring is important for both commercial lenders and their debtors, aka businesses. For businesses, especially those involved in an enterprise that’s seasonal in nature, commercial loan structuring can allow them access to funds during their low or off season. On the other hand, for commercial lenders, loan structuring means securing the best chance for the loan to be repaid by the business, whether that’s from cash flow, asset liquidation, or other sources. If a commercial loan is not structured properly, both parties won’t be able to achieve their individual goals. 

On the other hand, appropriate commercial loan structuring can provide many benefits to the lender and the borrower. A properly structured commercial loan can help the lender mitigate risks and price the loan so that it provides an acceptable yield. For the business, it means tax benefits, protection of collateral, and the opportunity to be able to restructure the loan in case there’s a change in its situation.

Commercial loan structuring

In short, appropriate commercial loan structuring is a win-win for both the lender and the borrower.

Finance

How Can a Company Improve its Financial Stability?

When looking to regain financial stability and return to conventional financing as soon as possible, asset-based lenders tend to have the opportunity to provide working capital to medium-sized businesses with a nimble approach that typically includes some of the following:

  • First security interest in all assets of the borrower

Asset-based lenders first take a security interest in all the borrower’s assets, meaning they can take ownership of the assets if the borrower defaults on their loan.

  • Personal guaranty of principal owner(s) > 20%

The lender also requires a personal guaranty from the business’s principal owner(s) to repay the loan.

  • Weekly borrowing base reporting

Additionally, the lender requires weekly reports on the business’s borrowing base and quarterly field exams to ensure the loan is used responsibly.

  • 12-month facilities; no early termination fees

Meaning the borrower has the flexibility to pay back the loan over a set time

  • Full dominion of funds, with lockbox

With an asset-based loan, the lender has full dominion of the loaned funds

  • Quarterly field exams

By working to understand the client’s business, these types of companies can structure flexible financing with asset-based lines of credit, construct financial packages that meet the immediate needs of the business, and help companies regain financial stability to return to conventional financing.

Financial stability is essential for any business, big or small. It is the ability to maintain a healthy cash flow and balance the needs of the business with its available funds. Without financial stability, businesses can struggle to meet their financial obligations, leading to decreased performance and the potential for bankruptcy.

One way a company can improve its financial stability is to work with an asset-based lender. This type of lender works with businesses of all sizes to provide financing for their operations.

In short, asset-based lenders can provide businesses with a way to improve their financial stability. By working with an asset-based lender, businesses can access the funds they need to continue operations and grow their business. The lender’s structure ensures that the loan is used responsibly and that the business is held accountable for its repayment. As the business’s financial stability improves, it can return to conventional financing.

How do you ensure financial stability of a company?

When attempting to ensure financial stability, businesses should first and foremost contact a professional who can help them navigate the process most efficiently and cost-effectively.

  • Get advice from a professional
  • Recover outstanding debt.
  • Reduce or rearrange expenses.
  • Sell assets.
  • Offer markdowns or increase prices
  • Consolidate debt
  • Use new marketing techniques
  • Offer additional payment options
  • Look for government grants
  • Keep track of and improve your cash flow

Financial stability is essential for businesses of all sizes.

Businesses should also consider recovering outstanding debt, reducing or rearranging expenses, selling assets, offering markdowns or increasing prices, consolidating debt, using new marketing techniques, offering additional payment options, looking for government grants, and keeping track of and improving their cash flow.

To be clear, ensuring financial stability requires a multi-pronged approach. By consulting with a professional and taking steps to reduce expenses, increase revenues, and improve cash flow, businesses can ensure they have the resources to meet their financial obligations and remain sustainable.

How to improve the company’s market performance

Improving market performance is a key goal for any business. Market performance can be improved by taking a comprehensive marketing approach. Just another area of your business that you should leave up to the professionals to do. Here are some tips on how to improve market performance from a marketing perspective:

Start by creating a comprehensive marketing plan. A comprehensive marketing plan should include a detailed analysis of the target market, competitive landscape, and marketing objectives. It should also include a timeline for implementation and a strategy for evaluating results.

Utilizing multiple marketing channels, such as email, social media, and traditional advertising, can help reach more potential customers and increase brand visibility.

Utilize data-driven strategies to help your business determine which marketing strategies are most effective and where they should focus their efforts. But, again, a good marketing company should do this for you.

A focus on customer retention should be a top priority for any business. Utilizing customer loyalty programs, providing excellent customer service, and creating an engaging customer experience can help businesses retain customers and increase their market performance. In addition, maintaining a solid form of communication should be a top priority with your marketing company.

Track your progress. Tracking progress is essential for monitoring the success of marketing efforts. Utilizing analytics tools can help businesses assess the effectiveness of their strategies and make adjustments as needed.

Digital marketing includes a great website (a place where you can showcase your content as well as products and services). It can also mean utilizing social media channels, as well as email campaigns, online reputation management, and online review platforms.

Together with web development and SEO partners, professional digital marketers help companies update their websites, develop new ones, and maximize their visibility through Search Engine Optimization.

By taking a comprehensive approach to marketing and utilizing data-driven strategies, businesses can improve their market performance and increase their overall success. And any reputable marketing firm knows this. So, when seeking potential agencies, see to it that they are utilizing these efforts and even more.

What are the 4 keys to effective marketing?

The four Ps are the key considerations that must be thoughtfully reviewed and wisely implemented to market a product or service successfully. The four Ps of marketing are the key strategies businesses use to market their products and services.

They are product, price, place, and promotion. The four Ps are often referred to as the marketing mix.

  • Product: The product is the item or service that a business is selling. Ensuring that the product meets the target market’s high-quality needs is vital.
  • Price: The price of the product or service should be set according to the target market and the competition. It should be high enough to cover costs and generate a profit but low enough to remain competitive.
  • Place: Place refers to the distribution of the product or service. Ensuring the product or service is available in the right places and at the correct times is imperative.
  • Promotion: Promotion is the process of communicating the features and benefits of the product or service to the target market. Using the right promotional strategies to reach the target market is important.

Businesses can effectively market their products and services by utilizing the four Ps of marketing. It is vital to ensure that the product meets the target market’s needs, the price is competitive, the product is available in the right places, and the right promotional strategies are used to reach the target market.

How can a company improve its financial stability?

When looking to improve your company’s financial stability, getting help from experts is key. Hiring professionals like financial firms, lenders, and marketers can help you get back on track and ensure your business is in a solid financial position. With their help, you can make sure your company is in the best shape possible for the future.

Investments

What Are the Methods of Funding?

For artists to fund their work, there are a few different ways to explore that we will cover. The most common way we found was through grants, which are usually given by government agencies or industry-specific foundations. These organizations, whose intention is to support the arts, are happy to give money to artists.

Since grants can be challenging to obtain, they also often have very strict guidelines about how the funds can be used.

Another option is to find a customer who has faith in you, your art and, ultimately, is willing to provide the necessary funding for your goals. Historically, this was the most common method of funding, but obviously, it has become less common since the industrial age.

You could also finance your work through sales, and of course, this is the most common method for visual artists, but it can be challenging to sell your work for a high enough price to make a profit. For example, a caricature artist must be on site, live, creating their art at local and regional events, zoos, aquariums, the list goes on. Bottom line is, these types of artists must continue to create new art to present to their potential customers in order to maintain a solid income.

Some artists are able to take on commissioned projects. This type of funding is much like finding a customer who has faith in you, but with the added bonus that the project is already outlined for you. The parameters for the project will be set beforehand and it will be your job as the artist to complete the project within those confines.

Another example of how a visual artist could be funded would be when a professional commercial photographer is hired to shoot, for instance, a hamburger for a local chain. That burger joint then commissions the photographer to take photos of their hamburger, paying them based on the “usage” of the images. Will they be on a billboard? In a national magazine? In an international food publication? Or just used on their menu and on their website? The cost depends on these factors.

Whichever method you choose, funding your work is a vital part of being an artist.

Suppose we are talking about all kinds of businesses other than just the arts; The following is a list of other options to explore.

Some of the best ways to get capital to grow your business:

  • Bootstrapping; the funding source to start with is yourself
  • Loans from friends and family. Sometimes friends or family members will provide loans
  • Credit cards (not the most brilliant move, though, use only in an emergency)
  • Crowdfunding sites (GoFundMe)
  • Bank loans
  • Angel investors
  • Venture capital

How many types of funding are there?

The three types of startup funding are equity funding, debt funding, and government grants. Equity funding is when you sell a portion of your company to an investor in exchange for capital. The benefit of this type of funding is that you do not have to repay the money, and it does not put you in debt. However, the downside is that you lose some control over your company, and you may have to give up a more significant percentage of the profits should the company become successful.

Debt funding is when you take out a loan from a bank or other lending institution. The advantage of this type of funding is that you can get the money you need without giving up any ownership stake in your company. The disadvantage is that you will eventually have to repay the loan with interest, which can put a strain on your finances.

Government grants are another option for startup funding. These are typically provided by federal or state governments and come with certain restrictions on how they can be used. However, they can be a valuable source of capital for startups that meet the eligibility criteria.

Do investors get their money back if the business fails?

An equity investor is someone who provides money for your business in exchange for an ownership stake in the company. Equity investors are often referred to as “venture capitalists” because they are usually willing to take on more risk than other types of investors, such as debt investors. If your business fails, equity investors will likely lose all of their investment. However, if your business is successful, they stand to make a significant profit. So, while they are prepared to lose their investment, they are also hoping for a big payoff if your business succeeds.

On the other hand, debt investors are typically banks or other financial institutions that lend you money that must be paid back with interest. If your business fails, debt investors may attempt to collect the money they are owed through collections or other legal means. However, if your business is successful, you will simply pay back the loan plus interest. As you can see, equity and debt investors have very different risks and rewards when it comes to investing in a business.

When a business fails, its investors do not typically get their money back. If the company has any assets, they may be sold off to repay creditors. However, collections can be difficult and time-consuming, and often only a fraction of the debt is actually repaid.

For example, if a company owes $1 million to its creditors, it may only be able to raise $500,000 through asset sales. In addition, loans from family and friends are often not paid back if the business fails. As a result, investors should be aware that there is a risk of losing their entire investment when investing in a startup.

How do independent artists get funding?

If you are an independent artist swimming in debt or financial fear — here are some resources that may be helpful to you:

Most artist investors like to see a return on their investment quickly, so they tend to invest in projects with a shorter timeline. That said, there are artist investors who are willing to support projects with a longer timeline, such as an album or a tour. If you’re looking for artist investors,

It’s essential to do your research and find people who align with your vision. Many crowdfunding platforms cater to independent artists, such as Kickstarter, Indiegogo, and PledgeMusic. These platforms allow you to set up a campaign and collect pledges from supporters.

You can also create a page on GoFundMe or Patreon, which are popular platforms for fundraising for personal causes. Whatever platform you choose, be sure to promote your campaign widely and offer rewards that will incentivize people to donate.

And whatever you do, do NOT forget to have your estate done by an attorney. When the artist Prince passed away, his multimillion-dollar estate ended up in probate, which is the last place you want it to be. Prince’s estate was finally settled after a six-year court battle as the late singer did not leave a will regarding his $156 million estate. After Prince died in 2016, his six half-siblings were named his legal heirs.

What are the methods of funding?

In conclusion, the best method of funding will vary depending on the project and the amount of money required. However, grants and private donations are generally the most reliable funding sources. Grants can be difficult to obtain, but they offer a stable source of funding that does not need to be repaid. Private donations can be more volatile, but they can also be a major source of funding for projects that are unpopular or lack government support. Ultimately, the best source of funding will depend on the needs of the project and the willingness of donors to support it.

Finance

Is Being an Accountant Hard?

Being an accountant is not a hard job, but it does require a lot of dedication and attention to detail. To be successful as an accountant, you need to stay organized and keep track of all the finances of your clients or company. Being an accountant is a great career choice if you can do that.

Learning the basics of accounting starts in grade school when kids are taught debits and credits. That is a great foundation, and while most kids forget what they learn in school, the basics do stay with them. Then when they go into a career, they can build on that knowledge. Secondary schools specializing in Math, Science, Social Studies, and Reader’s and Writer’s Workshop courses usually comply with and exceed their state and national content and learning standards, especially in the STEM programs.

While accounting does require a complex set of skills and abilities and excellent attention to detail, it isn’t any more complicated than many of the other popular fields of study that lead to excellent lifelong career opportunities.

But being an accountant isn’t just about numbers. It’s also about understanding how to present them in an understandable and useful way for all the other people working at your company. If you want to be an accountant, you will have to familiarize yourself with computer programs. And even though the job of an accountant is not considered to be an exciting one, if you’re good at what you do and you like it enough, it can become a fruitful, life-long career.

The most common reason people become accountants is for job security and good pay. The demand for accountants is always high, and the job outlook is excellent. According to the Bureau of Labor Statistics, the employment of accountants and auditors is projected to grow 11 percent from 2016 to 2026, faster than the average for all occupations.

In addition, accountants can work in any industry, and there are a wide variety of accounting jobs to choose from. Accountants also have the opportunity to advance their careers by becoming Certified Public Accountants (CPAs), controllers, auditors or managers.

What are some of the advantages in an accounting career?

Benefits of a Career in Accounting

  1. Accountants Have a Better Understanding of Finances
  2. The Growing Demand for Accountants
  3. Opportunities for Advancement
  4. The Pay Range for Accountants is Competitive
  5. The Ability to Start Your Own Business
  6. Gaining a Better Understanding of Taxation and Business Law

Is it worth being an accountant?

Becoming an accountant is worth it if you truly enjoy what it’s about. Of course, you will have to work hard and put a lot of time into training. But, in the end, it’ll all be worth it because you will have been able to provide so much for your career and your company.

  • Accounting allows different professions to work together. Without accountants, no one would know where their money has gone and where it’s supposed to go.
  • Accounting allows people to predict the future of their companies. This helps people take action before it’s too late.
  • Accounting makes it easier for businesses to communicate important information with each other regarding money, services, goods, etc.

Disadvantages of being an accountant

  1. There is a lot of competition. While the need for accountants continues to grow, there are more and more job-seeking accounting graduates.  
  2. Hard work There’s a lot of competition out there.
  3. Long training period
  4. Additional qualifications
  5. Continuing education
  6. Work hours  
  7. Tedious labor includes anything from data entry to reviewing ledgers and preparing financial statements.
  8. Repetitive tasks This is often a con for those who don’t like monotony
  9. Stressful environment Tax season can be pretty intense for accountants, as can audits and other important deadlines.
  10. “Boring” reputation. The stereotypical accountant is dull and doesn’t have much of a social life.

How stressful is accounting?

Stress can result from audit deadlines and the potential fines for false reporting. Because accounting departments don’t produce money, staff reductions are common during economic downturns, creating exhaustion and anxiety for remaining employees. Tax season is particularly stressful for accountants in the United States.

A 2013 survey by Careercast.com found that tax examiner and collector was the most stressful job in America, with an average stress level of 8.95 out of 10.

The second most stressful job was an auditor, with a stress level of 8.54. The survey looked at 11 different factors to determine the rankings, including travel, deadlines, working in the public eye, physical dangers and environmental conditions.

A 2013 survey by Careercast.com found that tax examiner and collector was the most stressful job in America, with an average stress level of 8.95 out of 10.

The second most stressful job was an auditor, with a stress level of 8.54. The survey looked at 11 different factors to determine the rankings, including travel, deadlines, public eye work, physical dangers, and environmental conditions. An auditor is like an accountant but works for a company or organization, running their accounting department, instead of being self-employed.

What is the highest position in accounting?

Controller/Accounting Manager. In companies that do not have a CFO, the controller or accounting manager is usually the highest-ranking accountant. The controller is responsible for the day-to-day accounting of a company.

Will robots replace accountants?

Accountants will be supplemented rather than supplanted by robots. Automation is particularly useful for the kinds of mind-numbingly repetitious tasks that require no degree in accounting or a CPA. Automation allows accountants to spend more time on more important activities and add value.

Automation is utilized throughout many fields, and accounting is no different. In fact, automation in accounting has been around for quite some time now in the form of bookkeeping software. This software has allowed accountants to focus less on menial tasks, such as data entry, and more on analysis and interpretation.

Is Being an Accountant Hard?

So, is accounting a stressful career? The answer is yes. While there are certainly some benefits to the job, such as a regular salary and the chance to work independently, the stress factors can be overwhelming. If you’re considering a career in accounting, be prepared for long hours, intense deadlines, and a lot of pressure.

While being an accountant has its disadvantages, it also has a lot of advantages, such as job security, good pay, and opportunities for advancement. If you’re interested in a career in accounting, research the different types of accounting jobs to see which one is right for you. Being an accountant can also be a very rewarding career in helping businesses and individuals succeed financially.

So, go get an accounting degree from a good school, and you’ll be on your way to a successful career in no time.

401k

Average Investment Management Fees

When you are just getting started with an investment management company, it can be overwhelming to understand all the ins and outs, the fees, and what exactly your investment manager does. When you think about your daily life, from filling your gas tank to picking up groceries, there is a cost to doing business. Investment management is no different, and the fees associated with it can add up if don’t know what to look for and aren’t paying attention. Let’s take a look at typical investment fees and then find out what an investment manager does

Investment fees are not all bad. They cover some important costs to help ensure that your investments are managed well. You want to make sure you’re getting good value from your investments without letting excessive fees cut into your returns.  

You should never invest in anything until you understand how it works. And that includes investment fees. Your investment management company should clearly outline any fees associated with services and answer any questions you have about where the money your spending is going.

The average fee for a professional financial advisor’s services is 1.02% of assets under management annually for an account of one million dollars (the industry average fee is 0.95% and decreases depending on the size of your account).

There are several types of investment fees. Let’s review several of the most common fees you’ll come across when you start investing.

Loads (sales commissions)

If you are putting money into a Roth IRA, you’re actually buying shares in a mutual fund. The investment manager you’re buying those shares from will get a percentage of the money you invest, otherwise known as a load. When you see the word load, just think of a sales charge or a commission; there are three types of loads:

  • Front-end load: When you invest in a mutual fund with a front-end load, you are charged when you put money into your retirement fund.
  • Back-end load: Back-end loads are charged when you take money out of your retirement account.
  • No-load: With a no-load fund, you aren’t hiring an investment manager, so you don’t have to pay commission. However, when the value of your fund goes up, the expenses—like an annual maintenance fee—will cut into your profits.

Advisor fees

When you invest in mutual funds, you’ll either pay your investment manager through a load (commission-only advisors), advisor fee (fee-only advisors) or some combination of both (fee-based advisors).

Expense ratios (annual fund operating expenses)

You’ve paid your investment manager, now you need to help cover the costs of running the mutual fund. That’s where the expense ratio comes in. Several fees that make up the expense ratio:

  • Management fees: The stocks that make up your mutual fund aren’t there because of magic. Your investment management company makes sure that only the best investments make the cut. These fees help them manage the fund well.
  • Distribution and service (12b-1) fees: These fees pay for the fund’s marketing costs—how much it takes to promote the fund.
  • Administrative fees and operating costs: These cover things like salaries for the fund’s managers, record keeping and research. Some funds are more expensive to run than others which will impact how high or low the expense ratio is.

Now that you know more about the potential fees, what does an investment manager do?

Investment management companies are designed to clarify, simplify and maximize potential returns on clients’ investments. Various investments are used to help clients reach their unique goals. Often investment managers will focus on three key areas:

Create Income for Retirement

Most of us intend to save for the day we retire or just slow down a bit. Making sure there’s enough steady income to live on, where it comes from, how much is needed, and how it affects taxes are just a few of the things that need to be addressed. Your investment manager is well experienced in answering these questions and has helped create income for countless of retirees over the years. They will help plan and navigate your retirement journey.

Focus on Growth

You may not be ready for retirement and you want your investments to grow sufficiently so that when you are, the financial portions of the transition will be seamless. Determining the right balance between different investments is critical to long-term growth.

Consolidate and Coordinate

Very often people have so many varied investments that their portfolios become almost impossible to track, let alone manage. Investment managers help you coordinate and consolidate investments in ways that focus on increasing efficiency and reducing unnecessary complexity. They provide you with a detailed statement of all your investments that can be viewed on one page, helping them make better long-term decisions.

Investment companies will have a clear management process. Your investment manager will walk you through their particular process, but it typically involves these basics:

Review

The starting point for any portfolio is to review where you have your current investments. Your investment manager will try to keep it as simple and straightforward as possible, so you may be disappointed if you’re looking for an inch-thick book with a detailed analysis of your life history. You should expect a concise, easy-to-understand, one-page synopsis.

Plan

Your investment manager may determine some of what you currently have invested in is worth keeping, should be tweaked a bit, or maybe needs to go. They will address questions about taxes, growth, income requirements, and planning strategies. You will get a simple, easy-to-understand plan that addresses your specific needs, and the best ways to structure your investments to reach your goals.

Execute

No job is over until the paperwork is done. Your investment manager will assist in completing all the documentation necessary to execute your plans. They coordinate rollovers, work with you to complete applications, and monitor transfers of money. And, at completion, they provide you with copies of everything needed for your files. The investment management company staff is there to answer questions and provide assistance every step of the way.

Monitor

Managing investments is an ongoing process, and that includes the continuous monitoring, and assessing, of your investments as well as your investment managers performance. You should expect results, not just strategies. Your investment manager should encourage regular conversation to discuss performances of their investments, how they compare to market averages and your expectations, and if changes need to be made to the plan.