With online investing now the norm, DIY investing is all the rage. Anyone can do it, but of course not everyone can do it successfully. In our opinion, you need years of experience to consistently make good money investing. Yes you can do it by yourself, but how much money will you lose before you start to finally wise up?
Below are four reasons why we don’t think you should be investing on the stock-market without expert help.
Some investors get out as soon as they start seeing the markets falling quickly. Others get in as soon as they see them rising. Either way it is the kind of impulsive investing that rarely works. For a start any market that goes up and down that quickly is hugely unreliable and you are best advised to wait until it has settled down.
It is said that the best strategy for DIY investing is to invest your money into something for the long term. If you are concerned about the investment at any point talk to a Chartered Financial Planner. You will have to pay for the privilege, but in the long term their advice will prove invaluable.
Choosing the Right Financial Advisor
Every DIY investor needs a good financial advisor. You’ll know he or she is the right person for you because they’ll help you not only to write out a plan of how best to invest your money, but help you to stick to it. If you make are making a bad decision they’ll point out your mistake and steer you in the right direction. They are in short your financial best friend.
The wrong financial advisor will charge you hidden commissions, huge fees and encourage you to make decisions that favour only them. They are in short your financial enemy.
Having no Knowledge About Taxes and Fees
When it comes to taxes and fees there is so much to know. And even when you think you know everything there be something else to slip up on. It’s just one of those things you just have to learn the hard way.
For example did you know how much money expense ratios and trading commissions are affecting your bank balance? Do you know your accumulation from your distribution share classes? Do you know how to cut out unnecessary costs and taxes?
Most People Just Don’t Have the Time
Even if you are retired you probably have commitments in your life that stop you from focusing on your investments as you would like. And that is a problem. Investing is not something you can dip in and out of. You need to keep an eye on it constantly otherwise you can make bad mistakes. That is why it is so important to hire a financial advisor you can trust. Look around, talk to people. Check out reviews. They are the difference between between you making the worst financial decision of your life and the best.