Should I try a do-it-yourself approach when beginning to invest 50% in stocks and 50% in bond mutual funds, or hire a financial advisor to select a basket of stock options and bond mutual funds? 

I am retired and I want to invest the money in my 401(k) and IRA accounts using the 50% stock and 50% bond asset allocation model. Do you suggest that I try a do-it-yourself approach when beginning to invest 50% in stocks and 50% in bond mutual funds? Or should I hire a financial advisor to select a basket of stock options and bond mutual funds? 

Asset Allocation, Bonds / Fixed Income, Choosing an Advisor
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March 2018

There are pros and cons to managing your own investments versus hiring an advisor to do so.  On the pro side there is a wealth of information available to you to assist in decisions regarding asset allocation, the risk you accept with various investment choices, strategies for investing such as dollar cost averaging, market timing, and buy and hold strategies to name a few.

On the con side, inexperience can cost far more in losses and missed opportunities than you will pay someone to assist you.  You may have trouble sleeping at night having taken on the responsibility managing your investments brings.

That said, the most important step is to know yourself, are you well versed in finance?  Do you have an interest in learning or applying what you know to your investments?  Do you have the discipline to stay with your investment strategy in good times and bad?  The answers to these questions will assist in your decision.

Should you decide to hire a financial advisor, choose a CFP (Certified Financial Planner) and if possible a fee-only approach.  NAPFA is a good place to look for qualified advisors in your area.

Enjoy your retirement!  

March 2018
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March 2018