Asset Management: The Differences Between Corporate and Personal Oversight

You think that managing your financials is as easy as logging onto your institution’s banking website and viewing what you have available. While this may work for your day-to-day checking and savings, it is not nearly enough to take care of other assets you may have. There are different levels of asset management. To ensure you are getting adequate coverage from your finance firm, you should know the differences.

Managing an Infrastructure

For those who own and operate large companies, an infrastructure finance manager is what you need. This specialized account management firm handles not just the financial and economic side of things, but also engineering and practices that apply to the physical assets of the company. It is their job to be objective and provide a level of service that is cost-effective and operates within a given budget constraint.

A good example of infrastructure asset management is the managing of solar power systems. This renewable energy resource has given rise to solar parks, windmills, and is even employed by green companies as a way to offset the use of non-renewable energy sources. In order to manage all of these components, their financial costs and savings, and offer turnkey solutions to investors, there has to be a team working to make it happen.

Enterprise Asset Management

Infrastructure can be considered part of the enterprise. However, it is not the only aspect. When it comes to enterprise oversight, your team is looking at the fixed equity in addition to any digital and information technology inventory the company may have. There are also tangible properties such as the structure and any items within owned by the enterprise that should be taken into account. These items, while they may not be generating funds now, could be sold off in the future to shore up any financial difficulties.

Personal Oversight

While asset management is a common term among businesses and corporations, individuals use the term as well. For personal use, this term describes the supervision of retirement funds and other investments. An individual broker or company handles the account and monitors how well it is doing under current stock conditions.

The idea is that the supervisor uses the money within the fund to make it grow. By using sophisticated software and knowledge of the market, the right investment broker will be able to predict the best times to buy and sell stocks. He or she relays the information back to the account owner for permission to make the purchases or sales. By doing this at the right time, the investments grow.

An experienced financial manager will not just invest the money into stocks, but will diversify the account into savings, bonds, and high yield CODs. This way, if the stock market didn’t behave as predicted, some of the money is safe for the future.

Personal asset management teams work closely with their clients to help them use the funds to plan for their retirement.