Managing Your Own Investment Portfolio

  • 111
  • 115

Financial advisors help pave the way to financial freedom for many people because they often console people to not freak out when markets are in a panic situation. Still, it is suggested that everyone should try managing his/her own portfolio first because it can be one of the most advantageous do-it-yourself projects to take.

This article will tell you some of the reasons why knowing how to manage your own portfolio can greatly help you.

• Being Aware of Your Wealth Status Can Help You Spend Less

You may realize just how much your investments can earn over a long period of time, which will encourage you to deposit more to your reserve as early as possible. You may also realize that minimizing your spending just a little can reduce the years of slaving away at the work desk. It is easier to understand the power of saving and spending and how it can affect your retirement if you are better sync with your wealth.

See also Tips on Lifestyle Changes If You Want to Earn More Money

• Learn the Basics First Before Allowing Someone Touch Your Money

Financial advisors can be useful, but only if you can look for a good one. Not knowing the theories of good money management and investing principles, you might just let a financial advisor legally transmit your hard-earned money into his own pockets without you even noticing. Having sound investment principles will help you challenge the state of affairs enough for the advisor to pay more attention. All this will translate to your money matching your needs more appropriately.

• You May Have What It Takes To Do It Yourself

For people who have the desire to learn more than the basics and have the emotional control to continue the undertaking during negative scenarios, doing it yourself means you can save all the additional costs of dealing with a financial advisor. After all, managing your own money can be simple to do, even if making the right decisions may not be easy to do on a consistent basis.

Managing Investment Portfolio

• The Costs Last Beyond A Yearly Fee

Whether you find an advisor who will take a fixed amount per visit for compensation or one who takes a percentage of your portfolio each year, there may be other fees associated with having someone else manage your portfolio. For instance, you will be paying full capital gains taxes on everything that is sold every time an advisor changes your holdings irrespective of whether it is in your best interest to do so on an individual level. That is not to say advisors would not take your certain circumstances into consideration, but they often work with a number of clients and will buy and sell funds or equities in bulk that seem like a good idea for most people. You can always ask him or her to hold onto investments as long as you want them in your portfolio, but the calculations in determining what is most efficient for you specifically will often fall on your own shoulders.

• There Is Non-financial Cost

All the time spent interacting, driving to meetings, the interview process when you select a financial advisor, and so on are all costs that can be avoided if you manage portfolio yourself.

• You Can Manage Your Wealth on Your Own

Because of regulation, not every advisor get to manage your retirement accounts, which opposes the purpose somewhat since you end up spending just as much time, but only managing fraction of your money. In fact, you might be spending even more time because the time spent communicating with your advisor will be added on top of the time spent managing your retirement accounts.

See also List of Techniques in Earnings Management

• Asset Allocation Can Better Reflect Your Circumstances

An advisor will change your plan based on what he believes are your circumstances. But it depends on you to be fluent and patient enough to communicate all your needs and wants to the financial advisor every time you meet. Additionally, many people use basic groups of portfolios to maximize economies of scale. This may result in fitting your circumstances perfectly, or it may not.

• You Can Adjust Your Plan to Suit Your Needs

There are a lot of moving parts when you need to modify your plan. The required percentage to earmark for each investment, and whether it makes sense with all the tax laws affecting the after-tax benefit are just two details that need to be researched. Most financial advisors simply cannot deal with this for every client. This ends up with lots of sub-optimal being made, with you bearing all the consequences. When you are managing your portfolio on your own, you will have the needed knowledge to look further to see if any change makes sense, reducing costs.

See also Some Questions to Ask Your Financial Advisor


Having a financial advisor is a helpful way to make the path for retirement comfortable. This may work well for others but not for everyone. As mentioned above, managing your investment portfolio on your own can be beneficial to you, as a trader, and to your trading experience. You just need to make yourself aware of the necessary things as you put your trading decisions into actions.

You must be armed to the teeth with the best and most useful knowledge in trading. Visit Bworld Review to turn yourself into a sharper and wiser investor! Register an account now with BWorld and start your investment journey.

  • investment portfolio
  • portfolio management
  • investor
  • financial advisor
  • investing
  • investment
  • bworldpedia
  • bworldreview