An investor certainly can manage their own money. It is a part-time job, managing a portfolio, doing the research, and keeping up with the accounting, but it can be done with time and disipline. However, should you manage your own portfolio? You have to be unemotional about your money.
Often investors become attached to an investment. Even if it is a well-managed company that is going through a short-term situation, you don’t want to be invested in it if the stock is running into the ground.
At Henssler Financial, we approach money management by first establishing a financial plan. You need to have all financial areas of your life in place before you begin investing. Even if you have the knowledge and discipline to manage your portfolio, you are not likely a tax expert or an insurance agent or an estate planning attorney. You need to consult these experts for help in fields you do not understand.
We have many clients who have done an excellent job managing their own money. When they retire, they bring their portfolio to us because they want to relax and not worry about it anymore. Some come to us to manage their portfolio for a year or two while they travel, but very few ever take back the reins. Likewise, once retired, very few ever decide they now have the time to do it on their own.
If you are going to go about managing your portfolio yourself, we recommend sitting down with a financial planner and paying for an analysis. They will highlight your mistakes or problem areas and provide suggestions as to how you can improve your situation. We believe it takes a financial planner to help you coordinate your experts, such as your C.P.A., your attorney and your insurance agent.
You don’t have to sign up for a full wealth management program. Most financial advisory firms have programs that can be tailored to your needs. Likewise, you do not need millions of dollars to have a financial planner. Only a few elite firms have stringent minimums.
The 2013 Retirement Confidence Survey from the Employee Benefit Research Institute reported that only 23% of workers have consulted professionals when it comes to their personal finances. At Henssler Financial, we believe you should Live Ready, and that includes consulting experts for financial matters you do not understand. If you have questions regarding your financial situation the experts at Henssler Financial will be glad to help. You may call us at 770-429-9166 or email at firstname.lastname@example.org.