Do you Self-manage your Portfolio?

Do it Yourself Investing

As an investor, you might be encouraged to self-manage your portfolio. This could prevail a feeling of control over your financial future. However, it’s best to address this approach from a different angle. If your car were to break down, would you repair it yourself? Or, if you fell ill, would you diagnose a health ailment?

Most people would not. Unless, of course, they have undergone the coursework for their doctorate or have apprenticed under a car mechanic. The truth is, many individuals have built up a false sense of confidence with their ability to manage their own investments.

Self-investors, given the lack of vigorous training, tend to view their investment decisions through their own emotional lens. Often, a reliance is built upon gut feeling and mental shortcuts. We believe shortcuts lead to failure.

People do not realize how money and their emotions are bound together. When you put it all together, you get a high tendency to fall into decision traps, lacking the wealth of information needed.

Investing involves much more than knowing when to buy and sell. In fact, most investment experts avoid market timing. It’s a gamble. Most importantly, self-advisors rarely know when to sell an investment.

Investment Advisors know the rules and use fact-based modules to determine when a stock should be sold. Often, self-advisors don’t have rules or are unable to stick to them.

Have you Considered an Investment Advisor?

Self-investors must be able to perform research, investment management, and proper decision making. But, first ask yourself, what kind of benefits can an Investment Advisor provide versus what you sign up for when you do it yourself?

1. They get to know your personal objectives and they know how to meet them.

When speaking to an Investment Advisor, they get to know your short-term and long-term goals, what you’re saving, your spending behaviors, and the lifestyle you’re working toward. Then, they build a personalized strategy designed to help you achieve those goals.

Can you analyze your financial picture and track progress over time with general strategies when to exit the market?

By partnering with an Investment Advisor, you can reap the benefits of having someone who has a deep understanding of both investments and your financial goals.

2. Objective Advice.

Many DIY investors fall into a common investing trap. The emotional investing trap. Chasing performance and moving into and out of the markets can lead to poor diversification. An investment advisor offers objective, personalized advice that is needed when the markets become volatile.

3. Able to understand investment research.

An Investment Advisor understands market patterns. They also know the nature of diversification and other factors necessary in helping you make investment choices for your situation. As a DIY investor, you can spend time doing investment research and still may not having considered everything that can impact your decision making.

4. Complicated investment needs.

When preparing for retirement, you’ll need to involve your accountant and your attorney into your financial strategy, whether you own your own business, are expecting an inheritance, or have specific estate considerations. An Investment Advisor has the depth of knowledge and experience to help you navigate most situations, as well as work with your tax advisor and attorney to develop solutions to meet your needs.

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