Reasons not to be a ‘do-it-yourself’ investor - Ahwatukee Foothills News: Money

default avatar
Welcome to the site! Login or Signup below.
Logout|My Dashboard

Reasons not to be a ‘do-it-yourself’ investor

Font Size:
Default font size
Larger font size

Related Stories

Posted: Tuesday, January 29, 2013 2:47 pm

These days, you can go online and invest, for modest fees. You can also visit various websites for research and watch numerous cable shows for investment recommendations. So, why shouldn’t you be a “do-it-yourself” investor rather than work with a financial professional?

Actually, there are at least five good reasons why a financial advisor can help make you a better investor.

A financial advisor can:

• Ask the right questions. If you try to invest on your own, you may find yourself asking the wrong questions, such as: “What’s the ‘hottest’ investment out there?”

A financial professional can help frame better questions, such as: “Given my individual risk tolerance and long-term goals, which investments should I consider to help me build a balanced portfolio?” In other words, a financial professional can help you ask the questions that can lead to better results.

• Look at your situation objectively. No matter how hard you try, you won’t be able to take all the emotion out of your investment choices. After all, your investment success will play a large role in some key areas of your life, such as your ability to enjoy a comfortable retirement.

Consequently, if you think you’re not making the progress you should with your investments, you may be tempted to make a hasty decision to give your portfolio a “jolt.” Frequently, though, such choices can backfire.

When it comes to investing, it’s better to invest with your head, not your heart. A financial advisor can analyze your situation, assess your risk tolerance and make appropriate recommendations.

• Show a deeper understanding of investment research. You can look up many types of financial data on your own. But do you know how to put all these pieces together into a cohesive picture?

A financial professional, with years of experience and training, is generally more capable of finding the research sources and making the most sense out of the results.

Put experience to work in making portfolio recommendations. Even if you’ve been investing for many years, you might be surprised at all the underlying influences that should go into making investment decisions.

But a financial professional understands market patterns, the nature of diversification and other factors necessary in helping you make the right choices for your situation.

• Spend time looking for opportunities. Even if you enjoy the process of investing, the chances are quite good that you can’t spend as much time on it as a financial professional. That means, among other things, you aren’t constantly on the lookout for new investment opportunities.

Nor are you always looking within your own portfolio for opportunities to rebalance or make other adjustments that can help you move forward toward your goals.

But when you work closely with a financial advisor, he or she is exploring the financial markets for new investment prospects while regularly reviewing your portfolio for possibilities of upgrading quality, increasing diversification or making adjustments in response to changes in your life.

The “do-it-yourself” route may be fine for home repairs. But when it comes to managing your investment situation, there are benefits to working with a professional.

This article was written by Edward Jones for use by Ahwatukee Foothills Edward Jones Financial Advisor Kim DeVoss, CFP. Reach her at (480) 785-4751 or

More about

More about

More about

  • Discuss

but dysfunction is here to stay

Control of Congress hangs in the balance in 2016's elections A Democratic Senate could be short-lived, as the party faces a brutal 2018 map Wa…

Published: October 25, 2016 - 7:39 am @…

100 Things I Learned in 10 Years and 100 Reads of Marcus Aurelius’s ‘Meditations’

Almost exactly ten years ago, I bought the Meditations of Marcus Aurelius on Amazon. Amazon Prime didn’t exist then and to qualify for free sh…

Published: October 25, 2016 - 6:58 am @…

Hillary Clinton has 32 offices open in Arizona. Donald Trump doesn’t.

Arizona is, suddenly, a swing state in the presidential election. How? Why? And can Hillary Clinton actually win? I reached out to the Arizona…

Published: October 25, 2016 - 6:48 am @…

Meet Arizona Agriculture's W.T. Gladden

By Lauren Scott, Arizona Farm Bureau Intern: W.T. Gladden has been in the business of agriculture for over six decades, and doesn’t plan on st…

Published: October 25, 2016 - 6:46 am @…

Why the law turns a blind eye to right-wing militias

Read Mother Jones reporter Shane Bauer's undercover look at the right-wing militia movement. When Mother Jones reporter Shane Bauer signed up …

Published: October 25, 2016 - 6:39 am @…

Soros group is accused of violating Arizona election law

PHOENIX (AP) - A campaign finance violation complaint has been filed with the Maricopa County Recorder's Office against a newly formed indepen…

Published: October 25, 2016 - 5:47 am @…

Driver sought after deadly pedestrian collision in downtown Phoenix

PHOENIX -  Police are investigating a deadly pedestrian crash overnight in downtown Phoenix. The incident happened just before midnight on Mon…

Published: October 25, 2016 - 5:17 am @…

Rep. Meadows to run for Freedom Caucus chairman

By Scott Wong - The conservative rabble-rouser who successfully led the charge to oust Speaker John BoehnerJohn BoehnerRep. Meadows to run for…

Published: October 25, 2016 - 5:15 am @…

Articles: Hillary and Taxes

According to the Clinton campaign website: Hillary is committed to restoring basic fairness in our tax code and ensuring that the wealthiest A…

Published: October 25, 2016 - 4:46 am @…

American Hotel Income Properties REIT LP Announces Acquisition of Six Branded, Select-Service Hotels in Florida for US$61.0 Million

OTC Disclosure & News Service - American Hotel Income Properties REIT LP Announces Acquisition of Six Branded, Select-Service Hotels in Fl…

Published: October 25, 2016 - 4:27 am @

Facebook on Facebook

Twitter on Twitter


Subscribe to via RSS

RSS Feeds


Most Popular

Online poll