What Exactly is a Daily Money Manager (DMM)? 

The expertise of DMMs covers a broad range of tasks. The actual work they do depends on client need; however, the scope of services generally includes:

Some DMMs also provide additional services,

such as:

• Notary services.
• Fraud review.
• Accepting responsibility to act as power-of-attorney or representative payee for Social Security Benefits.
• Trustee and Executor.
• Preparation of payroll checks for home employees including calculation of Federal and state withholding and FICA taxes.
• Financial counseling.
• Preparing budgets from spending plans.
• Preparing plans to reduce debt.

DMMs provide additional services that may be of particular interest to specific groups.

HIGH NET WORTH INDIVIDUALS

DMMs often are asked to work with High Net Worth Individuals (HNWIs) who engage services for convenience and efficiency. Great service and high expectations are often the norm in their lives and they are often less concerned with cost than they are with exceptional service. For HNWIs, DMMs may be asked to pay more attention to investment files, keeping track of many accounts, and legacy and succession matters. HNWI may also have higher concerns about being properly insured and may ask a DMM to assist in making those arrangements.

BUSY PROFESSIONALS

A DMM will typically assist busy professionals with tasks such as budgeting, assisting with bill paying, monitoring college education accounts, negotiating with creditors, and organizing financial documents.

MILITARY PERSONNEL

Military personnel and their families are frequently overwhelmed by the vast amounts of paperwork and documents generated by the Veterans Administration, legal services, healthcare agencies and other support services specific to veterans. ©2018, American Association of Daily Money Managers

DMMs provide the coordination, organization and liaison work needed which allows those who have served or are currently serving our country to have peace of mind knowing that the details of their finances are being expertly managed by a DMM professional.

PEOPLE WITH DISABILITIES

DMMs are ideally suited to handle the bill paying and financial organization for people with cognitive and physical disabilities because the focus is primarily on clients’ finances. Caregivers are often too overwhelmed with the responsibilities of managing the physical care of their loved ones to manage the financial affairs, so this is frequently overlooked. People with disabilities can become victims of fraud and exploitation, so working with a knowledgeable and trusted professional is crucial.

SENIORS/OLDER ADULTS

A DMM can assist seniors with their daily payment of bills and other tasks such as monitoring and tracking long term care insurance, disability insurance, Medicare and Medicaid, and obtaining required minimum distributions (RMDs).

RETIREES

In the pre-retirement planning process, DMMs can assist a financial advisor with a review of retirement income with the absence of a salary and determine which expenses would go away and which may increase/decrease. DMMs can also assist retirees with RV purchase decisions and enable them to travel worry-free by managing mail, paying bills, monitoring budgets and arranging for home maintenance needs while they are away.

SMALL BUSINESS OWNERS

Small business owners often rely on the oversight of a DMM. By delegating the financial tasks that are the DMM’s expertise, small business owners can devote time and energy to growing the business. DMMs understand the importance of a smooth, accurate flow of information; their proficiency in recordkeeping, reporting, and performing online transactions can be invaluable to small business owners.

LIAISON WITH OTHER PROFESSIONALS

DMMs are often tasked with jobs that require coordinating with other professionals such as CPAs, attorneys, financial advisors, real estate professionals, insurance agents, and health care managers. If a DMM is working on estate issues, or with disgruntled family members, they often need to provide financial information or communicate with attorneys. A client with income-producing properties may require a DMM to deal with property managers or real estate professionals. DMMs work with insurance professionals to ensure that clients have adequate insurance coverage; assisting with managing client’s health care costs and billing issues often require a DMM to interact with health professionals. The role of a DMM requires good communication and coordination skills to ensure all aspects of a client’s financial life run smoothly and seamlessly.