Many handymen feel pride when they build their backyard decks. Yet, they may regret it later when they find themselves involved in a frightening viral video. The video could show a prom photo shoot going wrong and the deck collapses under the weight of too many people. Likewise, financial planning can appear easy to do. Individuals believe that because they earn a good income, they should be able to manage it as well. And yet, while you can build a retirement plan, it may not withstand the pressure.
5 Reasons You Don’t Want a Do-It-Yourself Financial Plan
Reason #1 – Third Party Perspective. Tiger Woods, Michael Jordan and Tom Brady are arguably some of the greatest of all time in each of their sports, and they know a few secrets to success. One of them says that the best players in the world have coaches. Coaches, plural. We all need someone to step back to watch our moves and instruct us on where we need to make changes. Can you imagine an athlete beating his chest, saying he is too fast, too smart and too experienced for advice? By contrast, I have often heard in murmured conversations, people think they are too smart, too rich and too experienced to need financial advice.
Reason #2 – Save Time. Most Financial advisors have been down the same road you are going, quite a few times. We specialize in working with retirees. This means that while you may retire only once in a lifetime, we help people retire every day. One of the great things about working with a professional is that you don’t know what you don’t know – but they do. Financial advisors should be watching the markets; this is their business. They should be up to date on current tax and investment law changes. One trap for investors is thinking that the accumulation of assets is the same as distributing them.
Reason #3 – Accountability. After every meeting we have with a client, we take notes. And at the bottom of that sheet is a section for my homework and the client’s homework. Even in college, most students need professors because some people cannot learn everything alone. One reason that we need teachers is because they help keep us accountable to make sure that we learn and implement new ideas.
Reason #4 – What About Your Spouse?. You could have the best financial plan in the world, but if you handle it exclusively, it could cause problems down the road. We are all finite, and even the longest life ends. Please don’t leave your beloved spouse alone to figure out their financial plan with people they may not trust.
Reason #5 – Time Constraints. You may have put three kids through college, you saved and worked hard for 35 years and now you are retired. Do you want to spend your time following the markets, balancing your portfolio, researching investments and trying to get your legal documents online done correctly? I know I don’t want that for my retirement, and this is my life’s work. You have prepared for retirement in order to pursue hobbies and spend quality time with your loved ones. You deserve to sit back and enjoy it.
One of the reasons people DIY is because they believe they are saving money. I have showed families countless ways to help increase their returns, help lower their taxes, help minimize probate and help protect their family better. Did it cost them? Of course it did. We do not work for free, but most families gladly pay us because they know the value they receive for the cost. Someone once said to me, “Andrew, if you hate the cost of advice, you’ll hate the cost of the mistakes you make even more.”
Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM) and/or Swan Capital. AEWM and Swan Capital are not affiliated companies. 00636350
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