Investment help - is it for you?
Investing on your own can be rewarding, however, based on your situation you may want professional help. There are both advantages and disadvantages to consider when evaluating between working with a professional or trying to go it alone. Below are some of the advantages of disadvantages between investing on your own or seeking the advise of an expert.
Investing on your own
- Advantages
- No management fees. Your only expenses are trading commissions and research costs.
- Knowing your investments.
- You always know how, and why, your assets are invested.
- You can adjust your portfolio on your own schedule.
- Personal satisfaction of personal investment success.
- Disavantages
- Time commitment - self-directed investing can be time consuming. If you do not have the time to research, analyze your portfolio on a periodic basis, track performance, etc. you may miss growth opportunities or not realize excessive risks.
- Potential stress - depending on your own level of confidence and investing skills, it can be very stressful to take sole responsiblity to make investment decisions.
Hiring an expert
- Advantages
- Investment professionals are skilled in helping you identify, design and maintain a financial plan. As a professional they can:
- Help stick to your plan by providing perspective without emotion. This is especially important in times of market turbulance.
- Suggest appropriate adjustments to your plans as life changes occur.
- Disadvantages
- Management fees may be charged, including one or more of the following:
- A percentage of the assets under their control.
- Commissions on transactions or a flat fee for certain services.
- An hourly rate or retainer for services provided.
