Why DIY Investment Planning Can Be A Risk

We make money to buy things, pay our bills, feed ourselves. With some of this money, we choose to save it or invest it, so we will have more money in the future to feel financially stable and comfortable to make more purchases, travel more, or invest more. In nearly every industry, DIY (Do-It-Yourself) is “hot” right now. People are enjoying creating their own things without the help of a professional to save money, create a hobby, or develop something they are proud of. Now, there is no shame in doing things yourself, but we are all not skilled, educated, or informed enough to do certain tasks in life. In our opinion, investing, for some, is one of those tasks people shouldn’t always do on their own.

The Cons of Investing on Your Own

When you’re doing all your own investing without any help, your personal biases and emotions can get in the way of your decisions. You will potentially miss out on opportunities because of emotionally-led decisions – and you may have no idea you’re doing this to yourself! Many DIY investors take their eye off critical opportunities to save or make drastic decisions in the heat of the moment, which could possibly hurt their portfolios. If you are not well-read on investing, you may not know where to start, how much to invest, what you can manage, what and when you should sell, etc. You may not know any rules of investing, so your decisions are not informed and chosen at random. DIY investment planning is a lot of work and research – hours and hours of research is required, especially if you are interested in stocks and need to know when to buy or sell. Even with hours of research, investing isn’t a cakewalk, for many; these individuals still may not understand certain aspects of investing and what they should or shouldn’t do – there’s a big learning curve. It truly takes years to become proficient in understanding the financial market and its behaviors.

Investing is a part of financial planning and you may need to have a strategy that also includes risk management, spending, withdrawal, college planning, estate planning, tax management, and more. We believe a big problem with many DIY investors is many do not stick to their plans. “Investing for retirement is inherently complicated, particularly as people get closer to retirement,” said Robert R. Johnson, president and CEO of the American College of Financial Services, in Bryn Mawr, Pennsylvania, in a U.S. News & World Report article. “The costs of mistakes can be major and many individuals are simply not wired to be effective DIY retirement investors. One simply can’t make up for major retirement mistakes both early and late in one’s working life.” If you’re in legal trouble, you seek the advice and help of a lawyer. If you are ill, you schedule an appointment with a doctor. If you want to invest or make a financial plan for your life, you should consider seeking the help of a financial advisor.

Looking for a Financial Planner?

Working with a financial planner on your investments may bring a lot of value into your life. He or she can guide you and introduce you to things you never knew existed. Investing should be  something you’re proud of, and if you’re making a lot of uninformed decisions on your own where you’re losing money or missing opportunities, you will only have yourself to blame. At Montoya Financial Strategies, we want to help you invest. We offer a bunch of financial services. Our financial advisors will sit down you and help you understand all aspects that may affect your personal financial situation. We listen to you and figure out the most appropriate investment plan for you. Let’s get started planning your financial future today! We have over 29 years of experience in helping our clients move forward in their personal finances. To get started, click our investment planning page to learn more or call us at 800-965-5554.


The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation. Comments concerning the past performance are not intended to be forward looking and should not be viewed as an indication of future results.

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