You can invest and achieve professional results
It is no secret that most investors under perform the standard S&P 500 benchmark. Poor behaviors like chasing past performance, neglecting asset allocation, and succumbing to emotion in bear markets leaves average investors with returns that barely beat inflation. Keeping these behaviors in check takes strategic discipline and emotional control.
They are traits that many suggest that non-professionals can’t maintain on their own during a bear market. But at DIY.Fund, we believe in giving the tools, insights and confidence they need to achieve professional results on their own. Here are three reasons that every DIY investor should have the audacity to invest on their own.
Professionals and Nonprofessionals have access to the same information
At DIY.Fund, we provide everyone with free access to the exact tools that professional registered investment advisors use. You can investigate historic stock prices. You can view a stock’s correlation with various indicies. We even give you the power to see how an individual stock fits into your overall portfolio. The information that you need to be an informed investor is at your fingertips.
Historically, professional investment advisors had access to proprietary tools that allowed them to accurately measure portfolio performance. Today, individual investors have access to the tools that they need to be a success. Is individual investing audacious? Not as much when you’ve got the right tools.
Professionals and Nonprofessionals can control the same things
Nobody can control the markets, and nobody can explain why prices aren’t always rational. But professionals and nonprofessionals can control the same factors. You can control your emotions, your fees and your strategy. You can keep your portfolio properly diversified, and you can maintain your asset allocation. Nobody cares about your investments as much as you do, so you may manage your portfolio better than a professional.
There is nothing wrong with hiring a professional. Perhaps you don’t care for DIY investing. Maybe you want some emotional support during a market downturn. However, your investment advisor won’t control anything that you can’t control on your own.
You can customize in ways that professionals won’t
Investing helps you achieve your long term lifestyle goals. However, consistent investing in the stock market isn’t always the right choice for you. If you’ve received a windfall, you may want to capitalize on market opportunities now rather than later. If you want to start a business, you may decide it makes sense to withdraw earlier than expected.
A professional investment advisor needs to manage the money of several hundred clients. If your personal situation or aspirations change, it’s up to you to inform your advisor, so they can put you onto a new track. If a professional manages your money, you will always be part of a system. You have more power to customize your portfolio than a financial advisor does.
If you see an opportunity to achieve your goal, you should be free to investigate more. Research the opportunity, check your blindspots, understand a worst case scenario. Then feel free to act. As a DIY investor, you’re in the drivers seat. You’re the person who will achieve your goals.