Your investor personality - DIYer or advice-seeker

May 4, 2016

Choosing one approach doesn’t have to mean excluding the other.

When it comes to investing, some people prefer to do all of their own research and choose their own investments. Others work with a financial advisor who can recommend the best products based on their unique financial situation.

There are benefits to each approach, and choosing one doesn’t have to mean excluding the other.

The DIY approach

If you have an interest in personal finance and enough time to commit to performing in-depth, high-quality research on specific investment products and investing in general, the DIY approach may work for you. You’ll want to be very careful with where you’re getting your information, which means doing “research on your research” so you can weed out less-reputable sources.

You’ll also want to get second and third opinions on whatever you learn, which is why you may want to work with a financial advisor. The right financial advisor will encourage independent research on any strategy or products they recommend, because they want you to be confident and comfortable with your investment decisions.

Working with an advisor

Your financial advisor has an obligation to make investment decisions that are suitable for you. They’ll ask you questions about your investment goals and objectives, time horizon and tolerance for risk. They’ll also get a complete picture of your level of financial knowledge.

After getting to know you, your financial advisor will help select the investment products that make the most sense for you. They’ll help you invest in a variety of assets, which may include equities, bonds, money market securities and mutual funds. This is called diversification and it helps limit your investment risk and ensure all of your investments don’t move in tandem. Some may move higher in value while others may decline, resulting in a smoother, less volatile investing experience.

You’re also less likely to avoid higher-risk investments, such as equities, when you work with a financial advisor. Higher-risk investments may lose value from time to time, but they provide higher potential returns over the long term. Lower-risk investments, like money market securities, provide lower returns but help to preserve capital. A mix of higher- and lower-risk investments can help you reach your financial goals.

Working with a financial advisor and doing your own research go hand in hand. Contact your financial advisor or visit to learn more.

The contents of this Web site are provided for informational and educational purposes, and are not intended to provide specific individual advice including, without limitation, investment, financial, legal, accounting or tax. Please consult with your own professional advisor on your particular circumstances.

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