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Is there a Benefit to Self-Managing?

An investor may be able to save money in management fees self-managing, but there are also limitations and risks. Perhaps the biggest risk is the role that emotion can play in investing.

Even the most skilled professionals are tempted by emotions in the market - big declines like the financial crisis can make one second-guess whether the market has hope of recovering, and big gains can create confidence that leads to less prudent risk-taking.

What’s more, what many self-managers do not realize is that managing a portfolio is a full-time job, one that involves constant decision-making and market analysis. That can be very trying on an investor that’s trying to enjoy retirement.

An advisor is helpful to make sure the long-term investment plan is adhered to and that emotional, knee-jerk decisions are avoided as often as possible.

Do I Need a Financial Advisor?
How do Advisors Charge and How Much Should I Pay?

Keywords: portfolio management, investment, investment portfolio, active management, fees & commissions,