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How DMMs and Wealth Managers Work Together

June 22, 2023

When speaking with prospective clients, I find that they often don’t know if they’re in search of a Daily Money Manager (DMM), a wealth manager, or both. During those conversations, it helps to first highlight the major differences between a DMM and a wealth manager, but then also speak to how DMMs and wealth managers work together. So, I’ll break it down just like that!

Daily Money Managers:

  • Track real-time financial data to make timely recommendations.
  • Are “in the weeds” with clients; often communicating several times per month.
  • Are focused on short-to-medium term cash flow goals and strategies; examples: debt reduction plans, second home or vacation savings strategies, projecting cash flow 6-12 months in advance (especially for clients with variable income).

Wealth Managers:

  • Look at historical spending figures to understand the possibilities for the distant future.
  • Generally have annual check-in meetings with their clients.
  • Are focused on long term goals and strategies; examples: retirement plans, investment strategies to build generational wealth, college savings, long term care and life insurance, and estate planning.

Good DMMs and wealth managers stay in their lanes. In other words, they don’t try to be all things to all people. When they’re each doing their jobs well, DMMs and wealth managers work together seamlessly. Together, they can guide a client through their current financial situation and into the future. They can collectively help a client to understand that todays financial actions impact their future. They can team up to make mutual clients feel comfortable and confident that if they stick to the plan, their financial goals and aspirations can come to fruition!

So, if you’re not sure if you’re looking for a DMM or a wealth manager, perhaps the answer is BOTH. I’m happy to have this discussion any time. Shoot me an email or give me a phone call!