Can Financial Planning Be A DIY Job?

Today’s Prep:

Wondering whether or not you really need a financial advisor or if you could just figure it out on your own? Why do people choose to approach financial planning like a DIY project, and why do some of those DIYers later change their mind?

(Click the featured times below to jump forward in the episode)

 

Equipping Points:

We all love a bit of do-it-yourself (or DIY), when it comes to home improvement projects or arts and crafts. There are entire tv shows and websites dedicated to the art of DIY. But what about when it comes to financial stuff? Should planning for retirement be a DIY job?

There are a number of reasons that people decide to do retirement planning on their own. A big one is often about the cost. Some people want to save the money and feel like they can save for retirement without the fees. Are they right to think that?

Many of Eric’s clients were also former financial DIYers. So, what causes someone to switch to working with an advisor? For starters, sometimes the DIY mistakes can look bigger when you are dealing with a bigger account after years of saving.

Two things that often get overlooked when it comes to DIY financial planning is factoring in taxes and inflation. As nice as your DIY spreadsheet may look, does it have room in the plan for both of those? How about the rate of return, is that aligned with the potential volatility of the market?

Listen to the entire episode to see if DIY financial planning is the right thing for you or click the timestamps below for a specific segment.

[1:04] – Why don’t some people choose to work with a financial advisor?

[2:49] – What triggers someone to go from DIY to working with a financial advisor?

[4:38] – What is a big mistake that happens with those who decide to DIY their financial plans?

[6:34] – Is risk factored into a DIY financial plan?

 

Related Resources:

What’s in Your Financial Junk Drawer

Tending to Your Retirement Garden

Today’s Takeaway:

More From Eric:

The host: Eric Peterson - Contact - Call: (515) 226-1500

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