Should You Be Your Own Investment Advisor?
There are three things that “Do-it-Yourselfers” commonly do: Home repairs, auto maintenance and acting as their own investment advisor.
We certainly see the appeal in saving some money on what may seem to be simple tasks, but there may be a hidden cost behind acting as your own investment advisor.
Yes, there are helpful “DIY” tools and more information available online than ever before. These tools and information can help investors make good investing decisions. Additionally, Exchange Traded Funds (ETFs) are powerful and simple and widely accessible. However, good, careful and complete research is time consuming. If you are not already an investment professional, such as a Chartered Financial Analyst or a Registered Investment Advisor, how much is your time worth? Can you afford to redirect your time, effort and energy into something other than your primary livelihood?
Your Time vs. Hiring an Investment Advisor
So what is your time actually worth? Have you done the math? What kind of return do you need to get back on the time you would spend researching investments and associated financial planning? Are you convinced that you can consistently match or outperform the stock market? Will your investment of time generate superior returns compared to the average investment advisor? And this last question is critically important: Can you manage your money without allowing your emotions to influence your decisions?
Consider the Value of an Investment Advisor
Are you choosing yourself to be your advisor? Whether you do it yourself, or hire an Registered Investment Advisor, the most expensive advice is often free advice.
If your investment situation is simple, you may be able to competently manage your investments yourself. However, if your investment situation becomes more complex, the more you can benefit from professional investment advice. Have you inherited stock? Are you searching for distribution strategies during retirement? Is there a divorce pending? Are illness and possible medical costs expected to be a factor? Certainly these can be emotional situations. The subject of money can be emotional. Once again, ask yourself if you can manage your money without allowing your emotions to influence your decisions?
The Value of a Fiduciary Relationship
As we wrote recently, Registered Investment Advisors are obligated, legally and ethically, to put your financial interests first. We take strict care to ensure no conflicts of interest exist. Our role as professionals is to provide the best options for your investment goals. How much might this be worth to you? You can trust us to make the best investment decisions for you while you focus your time and energy in other areas that need you.
If you are actively investing on your own, or thinking about starting to invest, you’ll want to visit with a Registered Investment Advisor. To learn more, click here to download our free eBook “3 Things an Investment Advisor Should Do for You”.
Anatoliy Cherevach is a Chartered Financial Analyst and a Portfolio Manager with Kunath Karren Rinne & Atkin, LLC, with over 19 years of portfolio management and security analysis experience. Prior to joining KKRA, he was a Portfolio Manager and Research Analyst with Cohen & Steers. Anatoliy holds an MBA in finance from Pacific Lutheran University. He is an active member of the CFA Institute and CFA Society Seattle.
Tags: growing your money, investments, Selling Your Business