Rushville Republican

Business

Discussion

Add a comment on this story
December 28, 2012

Five reasons not to be a “do-it-yourself” investor

Brian Humphrey Rushville Republican

RUSHVILLE — These days, you can go online and invest, for modest fees. You can also visit various websites for research and watch numerous cable shows for investment recommendations. So, why shouldn’t you be a “do-it-yourself” investor rather than work with a financial professional?

Actually, there are at least five good reasons why a financial advisor can help make you a better investor.

A financial advisor can:

Ask the right questions. If you try to invest on your own, you may find yourself asking the wrong questions, such as: “What’s the hottest investment out there?” A financial professional can help frame better questions, such as: “Given my individual risk tolerance and long-term goals, which investments should I consider to help me build a balanced portfolio?” In other words, a financial professional can help you ask the questions that can lead to better results.

Look at your situation objectively. No matter how hard you try, you won’t be able to take all the emotion out of your investment choices. After all, your investment success will play a large role in some key areas of your life, such as your ability to enjoy a comfortable retirement. Consequently, if you think you’re not making the progress you should with your investments, you may be tempted to make a hasty decision to give your portfolio a “jolt.” Frequently, though, such choices can backfire. When it comes to investing, it’s better to invest with your head, not your heart. A financial advisor can analyze your situation, assess your risk tolerance and make appropriate recommendations.

Show a deeper understanding of investment research. You can look up many types of financial data on your own. But do you know how to put all these pieces together into a cohesive picture? A financial professional, with years of experience and training, is generally more capable of finding the research sources and making the most sense out of the results.

Put experience to work in making portfolio recommendations. Even if you’ve been investing for many years, you might be surprised at all the underlying influences that should go into making investment decisions. But a financial professional understands market patterns, the nature of diversification and other factors necessary in helping you make the right choices for your situation.

Spend time looking for opportunities. Even if you enjoy the process of investing, the chances are quite good that you can’t spend as much time on it as a financial professional. That means, among other things, you aren’t constantly on the lookout for new investment opportunities. Nor are you always looking within your own portfolio for opportunities to rebalance or make other adjustments that can help you move forward toward your goals. But when you work closely with a financial advisor, he or she is exploring the financial markets for new investment prospects while regularly reviewing your portfolio for possibilities of upgrading quality, increasing diversification or making adjustments in response to changes in your life.

The “do-it-yourself” route may be fine for home repairs. But when it comes to managing your investment situation, there are benefits to working with a professional.



 

Text Only
Business
  • Vectren continues amphitheater sponsorship Vectren continues amphitheater sponsorship

    Pictured are Brad Ellsworth and Bob Rogge with Vectren presenting Mayor Mike Pavey a check for $2,500 for the 2013 Riverside Park Amphitheater Concert Series.

    June 11, 2013 1 Photo

  • What does Dow 15,000 mean to you?

    This month, the Dow Jones Industrial Average hit a milestone, when, for the first time, it closed above 15,000.  Of course, 15,000 is a nice, round number, and it sounds pretty big - but what does it mean to you, as an individual investor? Is it cause for celebration - or is it more of a “caution” flag?

    June 11, 2013

  • DeLucia Citizens State Bank adds to executive team

    Citizens State Bank has announced the hiring of John P. DeLucia as the company’s chief lending officer. DeLucia brings more than 20 years of financial services experience to the company, including past positions as branch manager, area manager, treasury management officer and business banker.

    May 31, 2013 1 Photo

  • Smith RushShelby Energy has new director

    Charles A. (Charlie) Smith, Arlington, has been selected to the board of directors of RushShelby Energy Rural Electric Cooperative.

    May 28, 2013 1 Photo

  • Walker PKG Tire welcomes new manager

    PKG Tire, 701 W. First Street, Rushville, is pleased to announce that longtime Rush County resident Ken Walker has joined the business as the manager of the local operation.

    May 28, 2013 1 Photo

  • If rates rise, what should you do with bonds?

    Interest rates are at historic lows. But they will rise eventually. If you invest in fixed-income vehicles, such as bonds, what might higher rates mean for you?

    May 28, 2013

  • Dream Home contest winner Dream Home contest winner

    Pictured (left to right) are Michael Davis, BMO Harris Bank, winner Scott Adkins, Katie Adkins, their children, Debbie O’Neal-Leisure branch manager BMO Harris, Hubert the BMO Harris mascot, Laura Simmonds, Christine Lykins and Steve Eichler of BMO Harris.

    May 17, 2013 1 Photo

  • Wells Fargo makes lead gift to RMH Pediatrics Wells Fargo makes lead gift to RMH Pediatrics

    On behalf of Wells Fargo Bank, Bruce Everhart, Marissa Taylor, and Theresa Alexander recently presented $5,000.00 towards the Rush Memorial Hospital Foundation Kedo’s Kids Campaign to Rush Memorial Hospital President and CEO Brad Smith and RMH Foundation Executive Director Faith Mock.

    May 17, 2013 1 Photo

  • Snyder Local American Family Insurance agent Kevin L. Snyder recognized

    Kevin L. Snyder, an American Family Insurance agent in Rushville has been recognized for providing outstanding customer experience under the American Star Excellence in Customer Experience Certification. Snyder joins other American Family agents who have demonstrated the highest level of commitment to outstanding customer service.

    May 17, 2013 1 Photo

  • Should you take a pension buyout?

    Have you recently received a pension buyout offer? If so, you need to decide if you should take the buyout, which could provide you with a potentially large lump sum, or continue accepting your regular pension payments for the rest of your life. It’s a big decision.

    May 17, 2013