Do It Yourself (DIY) … save the money by bypassing the professional. Just buy this magazine, newsletter, or subscribe free to blog(s) … and invest your money! Sounds good! Why pay for professionals or experts?
Soooo … how much do you pay for health care? Why do you pay it when you can diagnose yourself online? When you can find treatments online? These are rhetorical questions to get you thinking about what you’re really doing with your money. I suspect because you ultimately need the medical expert at the end of the day.
Yet, when it comes to money – something professionals work at full time (and many over 40 hours a week) … you can do better as a hobby?
Here are other blog posts that explain why pay fees and you get what you pay for … adviser worth blogs.
Yes … you need to be careful to ensure the person you choose to work with has your interests at heart. Most people don’t trust financial advisers because they don’t know how to separate those purely interested in the sale from those interested in helping them. Here’s a diagnostic tool that ADVISERS should complete for you – even ask them before you meet them to put their answers in writing on the tool! and send it back to you BEFORE YOU EVEN MEET!- and use the answers to select those two or three you want to meet with as the next stage. This IS the Do-It-Yourself phase! (NAPFA Comprehensive Financial Advisor Diagnostic).
Mistakes with money can be more costly than fees you pay … so select an adviser carefully and happily pay fees to help you come out ahead with your money. And learn to recognize the difference between investing and planning (seeing the bridge through the cables)! A good, honest and trustworthy adviser can help you with both planning (what you’re trying to do) AND investing (how you do that).
PS. Compensation terms confuses many people. What’s the difference between Fee-Only and Fee-Based? Most understand that commissions are a method where the company pays the person for selling their product. It works the same way in the financial world. Fee BASED is where the adviser is paid by both you AND a company (so who are they really working for)? Fee ONLY is where the adviser is paid ONLY by you. The diagnostic tool above will help you determine who is who when they give you their answers back on the form.