Do You Want to Manage Your Own Money?
In today's financial landscape, many people are working with advice-only financial advisors like BWP who offer guidance without taking over the management of assets. This model may appeal to you if you wish to maintain control over your investments while still benefiting from expert financial advice. The life of a DIYer is not for everyone, and if you're considering this route, here are questions to ponder before engaging with an advice-only advisor:
Do I enjoy learning about finances and managing my money and plan?
Not everyone finds joy or takes interest in the intricacies of financial planning and would rather let someone else do it for them. Reflecting on whether you enjoy this process is vital. If you find financial management engaging, an advice-only model might be ideal. However, if it feels like a chore, you might need to reconsider if this is the right path for you. There are lots of great advisors out there that could manage everything for you for an AUM or flat fee.
Do I have and want to spend the time to do it? How much is my time worth to me? Is there something else I’d rather be doing?
Financial management requires time not just for decision-making but also for ongoing education and adjustment based on market changes. Figure out if you have the availability and willingness to dedicate this time. The amount of time required has many variables, but you can make your plan and management as complex or simple as you want. Technology has helped streamline a lot of the process!
Am I confident in making investment decisions based on advice?
Unlike full-service advisors, you'll be the one pulling the triggers on investments. Confidence in your decision-making capability, even when advised, is crucial.
Can I stick to a financial and investment plan without someone enforcing it?
You may want to hire an advisor to have someone to talk you through the uncertainties of market volatilities. Without an advisor executing transactions on your behalf, you need the discipline to follow through with your plan and not jump ship when the market volatility becomes stressful. Having someone managing the assets for you can be helpful in these situations. Advice-only advisors can also provide insight during those times of uncertainty.
Being a DIYer can be a lot of work, so working with an advice-only financial advisor can be empowering because you still have control over your financial destiny while leveraging professional insights. If this sounds like you and want to get a little guidance, please reach out!
