Are you thinking about hiring a financial professional to help you invest your money? Investing money is one of the many services that a CERTIFIED FINANCIAL PLANNER® professional can offer. Now, let’s go over why doing it yourself can be challenging.
There are many reasons why DIY for personal finance is hard. Here are some of them:
- Doing it yourself is stressful
- An investment professional can likely do better than you can
- Doing it yourself is time consuming
Doing It Yourself is Stressful
Let’s assume that you have the knowledge, skill, and time to manage your own money. Perhaps you want to do other things with your time and energy, like exercise, make dinner, and spend time with your family, instead of doing research, filling out forms, and wondering if you are making the right decisions.
You may choose to hire someone to manage your investments and other areas of your financial life. This way you focus spending your time on the things that you would like.
Hiring an Investment Professional
If you’ve been investing for a while in a 401(k), IRA, and investment account while not having a strong grasp on investing principles, you may have a pretty complicated portfolio.
Have you even thought about how you’re investing your money? For example, “Why do I own investment ABC?” Figuring out why you’re investing is important when determining if a portfolio is appropriate for you.
When you figure out why you’re investing your money – retirement in 30 years, kids college in 15 years, and house purchase in 3 years – then you can make a plan that is aimed at these goals.
Hiring a financial professional can help you with this. Once you do determine the goals and the appropriate portfolio with a CERTIFIED FINANCIAL PLANNER® professional, they can keep you on track over the years.
Plus, financial planners help clients over and over again.
Time Consuming
If you’d still like to go it alone, it’s very time consuming. Rebalancing portfolios, and investing the proper amounts in the correct accounts are tedious. The administrative tasks for managing accounts are overwhelming – beneficiaries, managing 401(k) contributions, funding and managing an IRA, rolling old 401(k)s to IRAs. It’s a lot. For instance, how many old 401(k)’s do you have?
There is great value in having a CERTIFIED FINANCIAL PLANNER® professional work with you on your investments and the many other areas of your financial life. We can discuss this more in depth if you would like.