I hope you all had your seatbelts on for last week’s wild ride through the markets. What started on the other side of the world quickly headed our way like a tsunami and wreaked almost as much havoc. But just like the seas calm after a storm, so too will the markets recover and hopefully prosper at some point.
All of this got me thinking about the do-it-yourself investor and how they coped this past week. Even with mounds of information and support, it was a daunting week for professional money managers. But as professionals they were able to take their emotions out of the equation and almost immediately understood what was causing the disruption to our markets.
As a financial professional I handle my own investing, but I certainly don’t do it alone. I utilize all of the tools, information and resources that we use for our clients. I couldn’t imagine being on my own to face the volatility that hit last week with the limited resources of a personal investor. Now don’t get me wrong, there are plenty of times that I’ve been a do-it-yourselfer, but they typically involve household projects.
The other challenge every investor faces, particularly the do-it-yourself investor, is the ability to separate your emotions from the decision making. This your nest-egg we are talking about, the future well-being of not only yourself, but also your loved ones hangs in the balance. It’s only natural to have some emotional interference but that can be a dangerous thing when it comes to investing. It’s the reason a surgeon doesn’t normally operate on a loved one. You need a clear thinking professional with no emotional baggage when it comes time to make an investment decision.
If you are a do-it-yourself investor, why not at least visit with a qualified financial professional and find out how their support and services may be able to supplement your efforts. Just because you work with a financial professional doesn’t mean you have to relinquish control of your ability to invest for yourself. Why not see how adding their research and knowledge might make your strategy that much stronger.
Many qualified financial professionals offer complimentary, no-obligation meetings and welcome the do-it-yourself investor. Take advantage of one of these free meetings and if nothing else you can get a second opinion on your portfolio so you can have the resources of a financial team at your disposal and still remain actively involved in the decision making. With that type of support you can finally get around to fixing those things around the house you’ve been putting off.