You can manage your account yourself, or you can choose to have a 3rd party money manager do it for you.  The 3rd party manager will manage your portfolio consistent with your level of tolerance for risk and will endeavor to keep your money in the right funds at the right time.  This involves monitoring the market closely and adjusting your account to reflect changes in the market.  There is a fee for this service which is usually paid out of your account.  3rd party management frees you from making decisions about the market and how to allocate your portfolio.  It is recommended for investors who do not have the experience, knowledge, time, or desire to manage their own account alone.

“Buy –and-hold” vs. “Active Management”

For many years the default system of investing in the market was to “buy-and-hold”.  This meant buying a portfolio of mutual funds or variable annuities that matched your goals and level of tolerance for risk.  The idea was to maintain this portfolio over the long term and to ride the market.  This meant no buying and selling of funds over that time period.  This system of investing has worked particularly well over secular bull markets, periods of time when most securities were trending upwards.

Buy-and-hold does not work during secular bear markets, periods of time in which securities stay within a trading range or trend downward.  Many market analysts consider that we are now in a secular bear market, which does not bode well for those who choose the buy-and-hold strategy.

Texas 1st Wealth Management, LLC

Texas 1st Wealth Management, LLC is a registered investment advisory firm and is registered with the State Securities Board of Texas.  We offer 3rd party money management services through our partnership with other money management firms.

Our goal is to provide individual investors a range of choices for money management.