Working With an Independent Financial Advisor vs. DIY Investing

Woman doing her financial planning.

Many people are tempted to try DIY investing, generally for reasons similar to the reasons people put off financial planning in the first place: having an advisor sounds too expensive or time-consuming, and why pay someone when you can just find the answers on Google?

Unfortunately, DIY investing doesn’t usually bring the same benefits of a financial planner. In this article, we’ll discuss reasons why you might try DIY vs. when it’s better to work with a professional.

When You Might Try DIY

There are times where DIY may truly be the best option, particularly if you’re looking only for a simple investment plan and you are not trying to maximize your profits or investments.

Many DIY investors use a robo-advisor, which uses computer algorithms to manage your investments. Those are typically one-size-fits all investments that are fairly limited in their ability to offer anything other than basic returns.

If you don’t use a robo-advisor, you need to do research on your own to determine risks and opportunities. In this case, you should consider the value of your time versus the value you may get with a financial advisor. Is it worth all the hours you could spend on research, compared to simply having a one-hour meeting with an advisor? More choices make it even harder to make a decision, so it’s best to do this only if finances are something you’re really interested in.

In most cases, working with an independent financial advisor is the better option.

Benefits of an Independent Financial Advisor

Financially, hiring a professional independent financial planner is a better overall investment due to the returns you may receive from an advisor’s experience in taxes, investments, and more.

Imagine the difference between an investment plan and overall financial planning. Financial advisors help with more than just investing: they proactively identify risks and opportunities for you, offer advice, and help you navigate college finances, business succession, and estate planning. This holistic view can save you money in the long run because advisors know how they interplay.

If you have extremely simple needs, you may be able to manage your money yourself. However, money tends to bring out our emotions, particularly when you’re going through a major life change or when there is any sort of political or economic upheaval. You need an objective point of view to serve as a voice of reason, whether that’s a group of like-minded friends who are interested and knowledgeable in finance or an independent financial advisor.

Discover the Benefits Yourself

Whether you’re working with an advisor or investing on your own, you’ll still be making the final investment decisions. However, having an independent financial advisor like the ones at Focus Financial means that you’ll have a team of experts along the way to guide you and offer support.

Ready to discover the benefits yourself? Contact us today!

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