Working with investment management firms in Minnesota allows investors to work toward their financial goals with the help of experts. Investment firms manage securities such as bonds and stock shares. Many also manage asset investments, such as real estate investments.

These professionals sometimes will go by the title "asset managers" if they specifically manage assets. Wealth management, portfolio management and money management are terms often associated with individuals specializing in security investment. Keep the following in mind when considering investment management in Minnesota:

1. Choose Minnesota investment services that specialize in a particular asset, such as annuities and mutual funds, or operate as life insurance professionals.

2. Note that Minnesota investment firms cannot guarantee returns since valuations depend directly on market conditions.

3. Seek trustworthy investment firms Minnesota offers, but keep in mind that past performance may not be a direct reflection of future success.

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Work with a Minnesota investment management firm for specialized strategies

Expect individualized services when working with a Minnesota investment management company. Many companies will work with the investor to determine the best strategy for their portfolios to achieve the investor's goals. This often takes risk tolerance into consideration.

I recommend: Select an investment management agency in Minnesota capable of offering individualized services. RiverSource Distributors offers services that have are designed specifically for the investor's life. They work to develop a balanced portfolio with businesses and individual investors. Thrivent Financial for Lutherans provides specialized care for individuals, churches and institutions. They offer options including small cap value funds, municipal bond funds and other mutual funds.

Focus on products offered by MN money managers

Minnesota money managers offer a range of services. Select the right company to invest with based on the types of investments offered and how well these meet particular investment goals. Businesses may wish to consider a management company offering a large number of options to meet investment goals.

I recommend: Learn options in investments offered by an investment agency in Minnesota. First American Funds offers a large number of investment options, including collective and stable funds and closed end funds. In mutual funds, they offer tax-free income, income, index, small and mid cap funds, plus additional funds. Some companies offer a more specialized service such as Voyageur Asset Management. They offer equity and fixed income funds, money market funds for institutional investment and money market funds for retail investment.

Locate MN Investment services with high standards and experience

When working with investment management firms, Minnesota investors have the ability to locate trustworthy, proven professionals with solid communication skills. Companies with proven track records reduce risk and enhance an investors' confidence in the company.

I recommend: Turn to investment management in MN able to highlight long-term success and high quality management skills. Galliard Capital Management provides consistency through a time tested investment process that has been used by the same team of professionals since 1988. The Clifton Group offers long term, proven records. The company's team has worked together for 15 years, providing clients with quality communication and achievement of their goals.

Minnesota investment firms invest equities, income securities, real estate and derivative products. Managers of investment firms in MN are the customers that represent the “buy side” of the investment business while investment bankers are on the “sell side."

Minnesota investment services may be categorized by the type of asset managed by the investment firms. Minnesota companies may concentrate on a specific type of client base while others may accept investment from a variety of client types, including businesses that have assets to invest.

You must be able to identify the following three basic types of investments when you select Minnesota investment firms:

1. Hedge funds typically invest in public securities or their financial derivatives and come from members of private partnerships. A Minnesota investment management company may use many strategies for making a profit.

2. Mutual funds typically come from individual investors that do not have a high net worth. Minnesota investment firms combine the individual contributions and invest them as a single asset.

3. The basis for institutional funds are pensions, endowments and foundations for non-profit organizations. This type of Minnesota investment management firm must adopt a more conservative investment strategy than for mutual funds.

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Locate a company for investment management in Minnesota that seeks long-term results

Creating a highly diversified portfolio to minimize the risks is the goal for these investment firms. Minnesota investment managers for these portfolios should pick stocks with a high earnings potential and a value that is not reflected in their current prices.

I recommend: Workman Securities deals in a range of investment services, including retirement planning. Workman's website allows you to find representatives by state. Complete the form at Retirement Job Center and a single agent licensed to sell retirement planning services in Minnesota will contact you.

Select investment management in Minnesota that caters to wealthy investors

Wealthy clients often need an investment plan customized to their unique needs. An investment management firm with experience working with affluent clients will work closely with their financial advisers to increase each client's worth over the long-term.

I recommend: The National Association of Active Investment Managers is a non-profit association of registered investment advisers. You can find the nearest registered adviser by providing your city and state at its website. Country Financial has specialized experience in serving clients who have attained sudden wealth. You can find the nearest agent with its search form.

Select Minnesota investment services to support local businesses

Local MN money managers are best able to select the businesses in your area in which to invest your funds. That local knowledge will put your money to good use, not only increasing your own worth, but helping other local business owners expand and prosper as well.

I recommend: White Oaks Wealth Advisors in Minneapolis is a fee-only independent investment management firm that also has an office in Sarasota, FL. CHS Foundation is based in Inver Grove Heights and invests in rural and cooperative businesses throughout the United States.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  You should use the type of assets that are being invested to predict the performance of long-term investments. For example, a Minnesota investment management firm usually holds that the investment of equities produces a higher return than bonds, which in turn are more profitable than cash. Financial theory predicts this because equities have a higher risk than bonds, which are more volatile than cash.

Investment management firms in Minnesota advice and ratings will not only help you find a good adviser who works for a Minnesota investment management firm, you may also gain a better understanding of the current financial climate in the process. Minnesota investment services include purchasing securities, portfolio management, advice and counsel, risk management and retirement planning.

A good investment management agency in Minnesota can help you with all phases of financial planning. Investment management firms in Minnesota advice and ratings will help you make informed decisions. MN money managers have to pass the same rigorous Securities and Exchange Commission (SEC) exams as their colleagues in the rest of the country. Minnesota money managers need to be credentialed, savvy, and have the ability to understand the goals and risk tolerance of their clients while providing advice based on their training and experience.

1. Obtain a list of investment firms in Minnesota and see which ones are close to your home or office.

2. Ensure that any investment agency in Minnesota that you work with is accredited and its advisers have passed the appropriate SEC exams.

3. Review investment management firms in Minnesota advice and ratings to become comfortable that you are making a reasonable choice.

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Retrieve and review listings of MN investment services agencies

It never hurts to start with a list. You can find a list of SEC approved financial services firms in any Minnesota telephone directory or you can go online. Another good way to obtain a list is to talk to your friends and see who they turn to for financial advice in Minnesota.

I recommend: The Financial Planning Association of Minnesota provides lists of its member firms that have pledged to advise clients ethically and in good faith. You can also find more general lists by community of interest. The online Minneapolis Star Tribune newspaper provides directory listings for financial firms in Minneapolis and St. Paul. You can find similar listings for your community in Minnesota.

Customize your search of Minnesota investment firms by using referral services

There are watchdog companies that will take information you provide and help you find a financial planner well suited for your needs. This approach will save you time and could yield an appropriate match for you relatively early in the process.

I recommend: The Paladin Registry collects some basic information from you and uses that to match you with an accredited financial planner in your community. If you are a senior in Minnesota, for example, Senior Resource has culled a list along with advice and ratings of financial services firms in Minnesota adept at working with senior issues. You can find similar agencies for your specific area of need or interest in Minnesota.

Peruse ratings lists of Minnesota investment services firms and try to match needs and capabilities

You can benefit from the experiences of others by reviewing rating lists, case histories, and anecdotal evidence of investment firm practices in Minnesota. The local Better Business Bureau along with Chambers of Commerce are great places to start.

I recommend: There is a website devoted to advice and ratings of Minnesota Financial Advisors that starts with a list and works down into more detailed information. For a very safe approach, you can review a list of financial firms in Minnesota that have passed the Better Business Bureau accreditation program.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Compare your colleagues' lists of favorite financial advisers with your own research of investment management in Minnesota to determine whether you have some overlap. Personal experience and testimonials go a long way, so ask the important questions upfront and ask financial planners for a list of references you can contact.

Got money to invest but don't know what to do next? Your first step may be to hire an investment management firm in Minnesota. An investment management firm can help you with a variety of your investment strategies and is skilled in selecting and monitoring your investments to match your objectives. It may be helpful to educate yourself on the basics of investing. Learning the following key terms may help in building a relationship with your money manager so you can better communicate your goals.

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Wealth management

Wealth management is also called portfolio management or money management. All of the terms mean the same thing. Portfolio management is the process that investment management firms in Minnesota use to manage an investment strategy, allocating funds when needed and monitoring specific investments.

I recommend: Read more about wealth management services as offered by Minnesota firm Cornerstone Wealth Advisors.

Hedge funds

A hedge fund is an investment option that uses aggressive strategies unavailable with other investments and is not governed by the same rules and regulations of mutual funds. However, each fund is limited to 100 investors, requiring a sizable investment by each member. Those managing hedge funds in Minnesota bank a percentage of the profits.

I recommend: Check out this informative Minnesota Law & Politics article regarding alternative investments, including hedge funds.

Mutual funds

A mutual fund is operated by an investment company and gains money from shareholders investing with the same set of objectives. The value of public shares rise and fall. When a Minnesota shareholder buys in to a mutual fund, he or she also gains an equity position in the fund and all of its underlying securities.

I recommend: The Minnesota Municipal Income mutual fund at Fidelity Investments offers a growth chart and its performance numbers to review.

Annuity

An annuity acts like a contract, sold by an insurance company, providing regular payments to the account holder. Earnings on annuities are tax deferred and the holder only pays taxes on distributions when it is withdrawn. Those fixed annuities offer a payment guarantee of a certain amount, while variable annuities are not guaranteed, but can yield higher returns. Both variable and fixed annuities are considered low-risk, conservative investments by Minnesota investment management firms.

I recommend: The Minnesota Attorney General's Office provides tips for deferred annuities.

Bonds

If you purchase a bond, you are essentially loaning money to the issuer, whether it is a government or corporation. In return, the issuer agrees to pay you interest on that loan and repay you the value of the bond after a specified period of time. Types of bonds include foreign government bonds, municipal bonds, U.S. government securities, corporate bonds and federal agency securities.

I recommend: Get the latest information on state-issued bonds from the Minnesota Office of Management & Budget.

Endowment

An endowment is a special category given to charitable giving. An endowment acts as a permanent fund given to a specific person or entity for a specific purpose. Endowments in Minnesota are commonly given to institutions like schools or hospitals.

I recommend: Find out more about endowments through the Minnesota Orchestra's endowment program.