I recently heard a great analogy that aligns well with the topic of DIY investing—consider the process of changing your car’s oil. While you could learn to do it yourself and save some money, it can be messy and mistakes can happen, as my husband discovered years ago when oil dripped on his face while changing our Jeep’s oil. The same goes for DIY investing. While there’s a wealth of information online, it takes time, effort, and patience to navigate, and the outcome may not always be what you expect.
Another example is building a kit car. It’s possible to assemble a full-sized vehicle for much less than buying one from a dealership, which sounds appealing for those focused on saving money. However, you may have to deal with over 30,000 parts, spend 100–1,500 hours building it, and pass an inspection before it’s even roadworthy.
While saving money is important, knowing your limitations is crucial. I know little about car mechanics, let alone building one, so I choose to invest in a ready-made car instead of risking time and effort on something that may not work out in the end. The same principle applies to investing—sometimes, the initial cost of professional guidance can prevent significant losses down the road.
Where am I going with this? I aim to highlight that the comparison between building a DIY car and engaging in DIY investing underscores a vital point: this approach is not for everyone. Many individuals prefer and benefit from the guidance of a human financial advisor, particularly during turbulent market conditions when emotions can lead to impulsive decisions, such as liquidating investments in favor of cash. A skilled advisor can provide the necessary support and coaching to help you navigate these challenges and avoid costly mistakes.
Moreover, financial advisors offer invaluable guidance on a range of financial decisions beyond investments, including career changes, home purchases, and more.
At our firm, we emphasize several key areas in our approach to Wealth Management:
- Wealth Navigation: Identifying and achieving your cash flow goals.
- Wealth Defense: Protecting against blind spots, such as taxes, liabilities, and risk management.
- Wealth Transfer: Planning for the effective transfer of your wealth to future generations.
- Investment Management: Providing strategic oversight of your investment portfolio.
We are dedicated to understanding and addressing your unique financial goals. Additionally, financial advisors commit to ongoing education through continuous learning, attending industry conferences, and staying updated on best practices and industry standards. This dedication ensures that we remain at the forefront of our field, providing you with informed and effective advice.
If you have any questions or would like to learn more about how a financial advisor can assist you in achieving your financial objectives, please don’t hesitate to reach out.
Disclosure
*Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Stephens Consulting, LLC, doing business as Stephens Wealth Management Group (SWMG), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.
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Any opinions are those of Jill Carr and not necessarily those of Stephens Consulting. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete.