Many new investors are faced with a question, should I do this on my own or should I entrust my investment portfolio to a financial advisor? The new era of online brokers and deep discount brokers online has led to an increase in the amount of investors running their own portfolio. While there are no set guidelines that tell you whether you should do it on your own or get an adivisor, there are 
some questions you can ask yourself to understand what it is you are looking for and how you should get there.
The first question an investor thinking of going it alone in portfolio management must think about is, how much time can I devote to researching my investments? If you are unable to keep up to date with the recent news surrounding your investments, then you simply cannot do this on your own. Stocks are especially important to keep up to date with the recent happenings and financial health of your individual securities.
The second thing a prospective investor must ask is what there goals are with their investment portfolio, and if they believe they can acheive these on their own. The key must always be to maximize your portfolio and its real rate of return. Since advisors charge fairly large fees, managing your own portfolio is almost always the more cost-efficient method, but is it the method that you will get the greatest investment returns? The answer is it depends on your personal knowledge of your investment options.
Knowledge is the key in the investment world, and those who do not understand how investments work should certainly find a trustworthy advisor. Those who have done their homework and understand the risks involved and the time necessary into being successful can probably do well picking mutual funds, stocks, bonds, or other financial instruments to place into their portfolio. There are many websites such as Motley Fool and Investopedia which have large sections devoted solely to educating beginning investors, you should take advantage of these resources.
If you want to trade stocks or investments on your own, you would be well served to educate yourself through reading some of the top investment books written, as well as trying to build their portfolio through a good stock simulation game before trading for real. Choosing whether to run your investment portfolio or pick a trustworthy advisor is not a question to take lightly, your future is riding on you making a wise decision. Educate yourself and make the decision you believe best serves your interests.
Comment Preview