Frequently Asked Questions
If I hire a DMM, why do I need an accountant, lawyer, or social worker?
A DMM does not take the place of professionals in the accounting, investment, or social service fields. Their work complements the specialization of other professionals by facilitating the completion of your day-to-day tasks.
For example, a DMM organizes and maintains accurate financial records and can easily compile the necessary documents for tax preparation by an accountant. When the accountant has prepared the required tax returns, the DMM makes sure they are correctly signed, that the appropriate checks are attached, and that returns are mailed on time.
What types of tasks will a DMM handle?
The expertise of DMMs covers a broad range of tasks, and the actual work they do depends on client need. However, the scope of a DMM’s work generally includes the following:
- Bill-paying, including calls to payees regarding incorrect bills
- Balancing checkbooks and maintaining organization of bank records
- Preparing and delivering bank deposits
- Organizing tax documents and other paperwork
- Negotiating with creditors
- Providing referrals to and working with legal, tax, and investment professionals.
What will the services of a DMM cost and what are the common billing methods?
Most DMMs charge for their services on an hourly basis – rates varying with geographic areas and expertise. In addition to the hourly rates, most DMMs charge for their travel time and for out-of-pocket expenses such as postage costs incurred for their clients and or other purchases made on the client’s behalf. Some DMMs request payment at the time of service and others bill on a monthly or bi-weekly basis. You may also find some DMMs are willing to set a flat rate for service each month.
Will I be giving up my independence if I hire a DMM?
On the contrary, hiring a daily money manager will enable you to maintain your independence as the DMM is there to assist you with your finances while keeping you involved in any decision-making.
As a senior, they can give you the comfort of another set of eyes reviewing documents and ensuring bills are paid, potentially delaying any need for family members to step in. As a busy professional, they can free you up to focus on other important things like your family and career while keeping you informed of where your finances stand, avoiding late fees and poor credit because things will no longer fall through the cracks. For high net worth clients, you can be assured that someone else is watching over your financial life to make sure whatever tasks are required to be done to keep your household operating, they are done. The involvement of an outsider in personal financial affairs may be intimidating for some, but most clients of DMMs find that once they have established a relationship with their DMM, they don’t know how they survived without one.