First off, let me explain that I haven’t an issue with someone managing their own money. I actually love the idea of it, if you are in the right position financially and you know what you’re doing.
I can’t tell you how many people I have run into who want to brag to me about how they don’t need me (a professional money manager and financial advisor) to manage their money as they can do it all on their own. Again, fantastic!
The problem I have is that 99% of the people who are managing their own money start with a puffed up chest and then when they start to get into what they’ve invested in, on their own volition, they tell me about all of the losses, the poor timed choices and how this year has just been awful for their account. I can tell you with confidence that this year shouldn’t be bad for your portfolio, it should be incredible.
Let me ask you a question, would you consult with your doctor if you were having an issue? Or would you leave it to Dr. Google and your own management? I already mentioned I was fine with someone managing their own money if they knew what they were doing. I’d be fine with someone diagnosing themselves if they knew what they were doing there as well. Similar to a doctor (although not nearly as much), I have had to go through years of studying and education to be able to look after peoples money. I can’t speak for all advisors and I know some who shouldn’t be in the business at all but think of it like this: like your health, you look after some and the doctor looks after most. Your money should be the same, if you want, you can look after some and a professional should look after most.
I encourage you to know what you’re doing with your money, but, I also encourage you to work on making the money so we have something to work with. Otherwise, every up and down in the market will make you crazy if you’re relying on the money to live on and for long term use. Trust me, I used to be a day trader and I have relied solely on my gains for living and for investing.
Definitely do it yourself, but a small portion. Someone I know from my trading days went from having $2,700,000 to $1,300,000 very quickly because they looked after their own finances and investments. I offered to leave them with $50,000 and help them find an advisor who could help them with the rest. Scary right.
Be smart and be well,