4 Reasons Not to Self-Invest

While many individuals choose to manage their own assets, there are several reasons why it may not be in your best interest to go it alone. Below are four powerful reasons to consider professional help.

Reason #1: Missed Opportunities

The truth is the typical do-it-yourselfer may not have the necessary tools, time, or experience to research and monitor their portfolio effectively. The average investor also does not have access to, or the knowledge of, certain investments that could potentially improve their returns and lessen their risk. The market continues to evolve and change at a fast pace. Several of the investment vehicles available today were not available a few years ago. Unless you live in the investment world, like we do, you may never hear about these important opportunities.

If you enjoy investing, keep a small portion of your portfolio under your own management and have fun. However, unless you are committed to being a full-time financial manager, leave the majority of your portfolio in the hands of a professional. Your family’s financial well-being may depend on it.

Reason #2: A Relationship That Offers Confidence 

An important matter for self-directed investors to consider is what happens in the event the primary financial decision maker passes away or becomes incapacitated. Oftentimes the remaining spouse does not have the same enthusiasm for investing and is left feeling vulnerable or exposed.

Not having a relationship with a financial advisor who can assist them can be a scary and nerve-wracking experience. Your spouse will be stuck trying to find someone they trust and who will have their best interests in mind, all while dealing with a change in health or personal loss. That’s when mistakes can happen.

By having a relationship with Murphy Wealth Management Group our goal is to keep everything on track. Your spouse can grieve on their own terms and still feel confident that their finances are in good hands.

Reason #3: Concern About Commissions 

One of the most important aspects of investing is choosing the right investments for your portfolio based on personal circumstances, risk level, and goals. Many do-it-yourselfers won’t even consider certain investments because there is a commission associated with it. At Murphy Wealth Management Group, we do not receive commissions. Our compensation is completely fee based. We get paid an agreed upon percentage each year. The better you do… the better we do.

We are able to purchase thousands of investments with no commissions. Even if the investment typically charges a commission, it is waived for our clients. As a do-it-yourselfer, ignoring a commission-based account may mean that you are missing out on thousands of great investment choices that could be a perfect fit for your portfolio.

We research the market for the best investments and do not concern ourselves with whether they charge a commission. We control the fee and because of that, have the opportunity to explore more opportunities. Murphy Wealth Management Group can open you up to a whole new world of possibilities.

In a fee-based account clients pay a fee, based on the level of assets in the account, for the services of a financial advisor as part of an advisory relationship.

In deciding to pay a fee rather than commissions, clients should understand that the fee may be higher than a commission alternative during periods of lower trading.

Advisory fees are in addition to the internal expenses charged by mutual funds and other investment company securities.

To the extent that clients intend to hold these securities, the internal expenses should be included when evaluating the costs of a fee-based account.

Clients should periodically re-evaluate whether the use of an asset-based fee continues to be appropriate in servicing their needs.

Reason #4: One Stop Shopping – Your Personal CFO

One of the best advantages of being a Murphy Wealth Management Group client is having us as your Chief Financial Officer. We have created a “one-stop” shopping environment for clients who want it all. Through our tried and true relationships, we provide access to the professionals who can help you deal with your tax and estate planning issues.

This helps us to consider all aspects of your financial well-being and create effective strategies that that address all your needs including: Investments, Tax Planning, Insurance, Retirement, Estate Planning and Debt Management.

We have done the research to find experienced, local independent accountants, lawyers and other advisors who specialize in the areas that are of most concern to you. However, instead of traveling to their offices, we bring these professionals to you at our firm’s headquarters. We participate in the meeting to provide an extra set of eyes and ears on your behalf, all at no cost. The professionals we use can also advise on any complicated issues you may face in the future. This value-added service may not be available with most financial advisors or to the do-it-yourselfers who manage their own wealth. We look forward to servicing the challenges you may face today and in the future.

Here to Help

If you’re a self-investor, the turmoil in the market can be unnerving and leave you feeling vulnerable. If this describes you, it could be time to consider the support of a professional wealth advisor. At Murphy Wealth we’ve been through market ups and downs for over 30 years and work with clients to put strategies in place to help preserve their wealth even during rough periods.  Remember, I am here to help you and your family during this time. Whatever decisions you make, please allow me to support you through them. Feel free to reach out to me with any questions.