Are you DIY-er? This one’s for you!
Are you a Do-It-Yourself (DIY)-er type of person? Maybe you are the one who sees something that needs to get done or fixed around your home or office and takes it on, or maybe you like doing things on your own in general. It could be a much-needed bookshelf. A computer program that needs tweaking. Perhaps a car part needs to be put in. Your neighbor might like going to the gym, but you prefer working out on your own and trying different things.
And so you make a plan. You get the necessary materials and resources. You watch tutorials and videos online. You get to work. You finish the project, take a selfie, post on social media, or call your best friend and celebrate!
Or -- not. Maybe you run into a snag. Maybe something else came up that needed your attention. Maybe you got confused with the instructions and decided to work on it later. Maybe you needed a guide, or perhaps some kind of accountability partner to help you get your DIY project done.
So how does being DIY-er and the idea of an “accountability partner” relate to financial planning anyway?
As you may know, much of the financial services industry is built on complexity and lack of transparency. We see this continually, and more recently, with the 2008-09 financial services meltdown and the major legislation that followed. The public generally does not trust the financial services industry. However, if there was transparency, and you are the DIY type of person, then you would do these things on your own. Wouldn’t you?
This is why I say you should not hire a financial advisor to “manage” your money. Having someone manage your money often implies or requires a minimum of assets to manage. You can educate yourself and do this on your own. You can see the appetite for financial education with the abundance of books, podcasts, and Facebook groups on how to manage money.
In the past, it was not easy to manage your money with all of the different options and not good research easily available to back up your assumptions. But with the Internet and basically zero-commission trading, there really is no excuse to not do it on your own. All you need is some guidance and an Internet connection!
For instance, you can get a low-cost target-based retirement fund that automatically adjusts for your retirement age. And most employers have realized this and provide employees access to these funds for their 401k plans. There are also many options for an all in one portfolio which makes investing easy for any goal. These funds are diversified, automatically rebalance, and can be chosen by you by your projected retirement date or other goals. Not too hard, right??
What you should know more about are other more important issues such as financial planning. Financial planning is working with you to achieve both short and long term personal financial goals. Essentially, helping you through life’s ups and downs. Questions financial planner can help with:
Will you have enough saved for retirement?
Are you doing tax planning in order to reduce your tax liability?
Do you have adequate insurance coverage to protect you against risks?
Can you save enough money for a goal such as your child’s college?
How do I pay down my credit card or student loan debt?
A financial planner is your accountability partner that works to help you achieve your personal financial goals. You need an accountability partner that will be by your side through the ups and downs of life. In the spirit of DIY and independence to figure things out, you can educate and thereby empower yourself to make the best financial decisions as you see fit. You got this!
*This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither the information presented nor any opinion expressed constitutes a representation by us of a specific investment or the purchase or sale of any securities. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets.