5 key tips for self-directed investors
No. 5: Consider getting professional help
Too many investors buy a $5 investment magazine, read an article about the latest financial trend and consider themselves experts, Schatz says. But financial articles can't take into account a specific investor's personal goals, risk tolerance and time horizon.
If you find yourself reacting to market fluctuations or making decisions based on the news, consider hiring a financial planner to review your plan, offer feedback and make suggestions. Most financial advisers have honed their strategy, learned what works and what doesn't work, and know how to establish a well-thought-out investment plan, Schatz says.
You don't have to relinquish control of your assets. You can simply pay a professional by the hour or on a per-project basis. For instance, you might want someone to review your investment plan to see if it's appropriate for your situation.