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

Print
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 Kim.DeVoss@edwardjones.com.

More about

More about

More about

  • Discuss

Dirty Laundry Alert: Kelly Townsend Drops E-mail Bomb on CD5 Hopeful Andy Biggs

Stephen Lemons A A Andy Biggs probably wishes he never stopped by a recent Legislative District 16 meeting in Mesa, where he reportedly picked…

Published: July 30, 2016 - 1:48 pm @ http://www.phoenixnewtimes.com/news/dirty-laundry-…

This baby Harry Potter fan grew up to be like Hermione Granger

Taken in 2003, this adorable photograph of a six-month-old baby girl with her mum is a perfect example of early Harry Potter fandom.  The baby…

Published: July 30, 2016 - 12:48 pm @ http://mashable.com/2016/07/30/harry-potter-baby/

Justice Department to review fatal Arizona police shooting

PHOENIX (AP) — The U.S. Justice Department will investigate the fatal shooting of a woman by a Winslow police officer. Justice Department spok…

Published: July 30, 2016 - 12:48 pm @ http://bigstory.ap.org/article/e6616d002f73468e856…

Buckeye AZ Police Department - Timeline

@BuckeyeAZPDPublicSee more of Buckeye AZ Police Department by logging into FacebookMessage this Page, learn about upcoming events and more. If…

Published: July 30, 2016 - 12:46 pm @ https://www.facebook.com/BuckeyeAZPD/posts/692718737560052

Reward offered after armed robbery at Taco Bell

SCOTTSDALE, AZ - Know this man? Silent Witness is offering a reward after they believe he robbed a Taco Bell. The incident happened at a Scott…

Published: July 30, 2016 - 12:26 pm @ http://www.abc15.com/news/region-northeast-valley/…

The return of the Luddite president

Whether Hillary Clinton or Donald Trump wins the White House, one thing seems sure: The U.S. will get a president with scant first-hand unders…

Published: July 30, 2016 - 12:18 pm @ http://www.politico.com/story/2016/07/luddite-pres…

Radio Phoenix Podcast with Man Hands

Local punk rockers Man Hands came down to the Phoenix Center for the Arts for another installment of Rise on Radio Phoenix. And of course they…

Published: July 30, 2016 - 11:55 am @ https://www.yabyumwest.com/2016/07/radio-phoenix-p…

The Noise Addicts of New York City: Best #Cityreads of the Week

“Noise is a Drug and New York is Full of Addicts,” Susie Neilson, Nautilus As soon as the door slams, I slide to the floor in a cross-legged p…

Published: July 30, 2016 - 10:19 am @ http://www.citylab.com/design/2016/07/the-noise-ad…

Space Standoff: The next Cold War is already playing out right above our heads

There’s a cold war in space and virtually no one knows about it. Right now, miles above your head, there are fleets of robotic, weaponized sat…

Published: July 30, 2016 - 10:18 am @ http://www.digitaltrends.com/cool-tech/weaponized-…

Mesa Mountain View's Hodges Commits to Sun Devils

The good times continue to role for Arizona State this offseason from a recruiting stand point as the Sun Devils have added another local pros…

Published: July 30, 2016 - 9:46 am @ http://www.sports360az.com/2016/07/mountain-views-…

Facebook

ahwatukee.com on Facebook

Twitter

ahwatukee.com on Twitter

RSS

Subscribe to ahwatukee.com via RSS

RSS Feeds

Spacer4px

Most Popular

Online poll

Loading…