I’m a big “do-it-yourself” guy. I love researching and figuring out what to do with my money. It’s like a hobby I guess. But it’s not for everybody. It has its drawbacks.
Here are some pros and cons for you to think about before deciding on a DIY investment plan (it’s definitely not a complete list):
Pros to DIY:
- It can be fun or at least interesting;
- It can save you money if you make good decisions;
- It can feel good to plan for your family’s future;
- You have no loyalties to any mutual fund or wealth management companies;
- You don’t work on commission or other fee basis that could encourage steering to a particular investment or rush through an answer to reduce time spent on a flat-fee basis;
- It could be a productive way to spend (ahem) “spare” time; and
- It’s not rocket science – almost anyone can figure it out.
Cons to DIY:
- You may not have the interest in finance;
- If you’re not into personal finance you could make mistakes;
- It can be time consuming, so you may not have enough “spare” time;
- Some decisions require specialties and you may not have the network a financial planner has to ask a quick question (like tax advice or estate planning for example); and
- Planners (should) keep up with the newest investment, savings and other valuable options;
What did I miss? In short, you could spend some time, learn and do it yourself and you could be fine. But for some folks it’s not worth the time and effort. That’s fine. It’s not for everyone. So how do you pick a financial planner? I’ll share some ideas on that soon.
Anyone use a financial planner? How did you choose them? What do you prefer, fee- or commission-based? The experts seem to prefer fee-based. I tend to agree, but I’m sure it’s not as easy a decision as simply not using a commission-based financial planner as a matter of course. More on this later.
Until then, put your credit card down and slowly step away from the mall!
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