Investment planning can feel overwhelming, especially if you’re a new baby in the financial world. Many people ponder two key questions: what to invest in, and how to get started. Deciding between DIY investing and hiring a financial advisor depends on several factors, including your experience, availability, financial literacy, risk tolerance, priorities, long-term goals, and the strength of your financial safety net.
Every investor has their own approach, and both DIY investing and professional advice come with pros and cons. While DIY investing can save money on fees, it often involves emotional decision-making and may lack the expertise needed to navigate complex financial situations.
Some investors take a hybrid approach—managing part of their portfolio themselves while relying on a financial advisor for more complex areas like retirement planning or tax strategy.
This article covers choosing between DIY investing and financial advice.
What Is DIY Investing?
DIY stands for “Do It Yourself.” In the context of investing, it refers to a method where individuals build and manage their investment portfolios without the help of a financial advisor. DIY investors research, select, and monitor their investments independently, often using online platforms and tools.
DIY investing requires time and effort to stay aligned with market trends, but it can significantly boost your financial knowledge, especially if you’re fully committed.
Some firms and individuals use robo-advisors to support their DIY investment strategies. A robo-advisor is an automated software platform that leverages algorithms to offer you the best investment guidance.
Tip – Before you start DIY investing, learn the 5 key principles of investing.
What Does a Full Financial Advisor Offer?
A full financial advisor delivers a broad range of financial planning services, such as investment strategy, retirement preparation, tax optimisation, debt reduction, estate planning, and additional personalised guidance.
A registered financial advisor charges a fee for their services, which is typically based on your financial situation and long-term goals. The charges can be a flat fee, a commission, a retainer fee, or a hybrid of the first two.
Working with an advisor offers several benefits, including saving time, receiving expert guidance, and gaining confidence in your financial decisions. Their advice helps you make choices grounded in data and analysis, rather than emotions or the influence of financial influencers (also called finfluencers).
Stay cautious and don’t be fooled online: Don’t blindly follow financial influencers. While their content may seem appealing, you often can’t verify how credible or qualified they truly are. Many are paid to promote products or services, and the person behind the screen may not have any real financial expertise. Their luxurious lifestyles might be exaggerated—or even entirely fake. Always check if they are registered professionals before taking their advice seriously.
Social media is a valuable tool for building connections, but it’s important to use it thoughtfully and responsibly.
Who Should Consider DIY Investing?
DIY investing may not be suitable for beginners who don’t actively follow the markets, lack a solid understanding of investment options, or haven’t assessed their risk tolerance. Without these fundamentals, the risks of poor decision-making are much higher.
DIY (Do-It-Yourself) investing is best suited for individuals who have a strong interest in financial markets, are willing to dedicate time to research, and understand different investment products and strategies. It requires discipline, a clear understanding of risk tolerance, and the ability to make decisions without emotional bias.
DIY investing can be a cost-effective way to grow wealth, but it may not be ideal for beginners who lack market knowledge or the time to stay informed. If you’re confident in analysing financial information and comfortable managing your own portfolio, DIY investing can be a rewarding approach.
When Does It Make Sense to Hire a Financial Advisor?
Hiring a financial advisor makes sense when your finances become more complex or you find yourself drifting from your financial goals. A full financial advisor can help with investment planning, tax strategies, retirement goals, and more, bringing expert insight and structure to your financial life.
If you feel overwhelmed, unsure about your next financial steps, or are straying from your goals, a professional can help you build a clear, personalised roadmap and keep you accountable. Their guidance can save time, reduce costly mistakes, and help ensure your financial decisions are aligned with your long-term objectives.
Major life changes like marriage, inheritance, or approaching retirement can complicate your finances. A financial advisor supports you during major changes, making sure your financial plans match your goals and that your investments are managed wisely.
Cost Comparison: DIY vs. Professional Advice
When deciding between DIY investing and hiring a financial advisor, cost is a major factor. DIY investing typically has lower direct costs, as you’re not paying advisory fees. You may only incur trading fees, platform charges, or fund expense ratios. This can make DIY appealing for those with smaller portfolios or strong financial knowledge. However, lower costs come with the responsibility of research, analysis, and risk management. Mistakes or emotional decisions could lead to costly outcomes, potentially offsetting the money saved on fees.
On the other hand, professional financial advisors usually charge a fee based on a percentage of assets under management (typically 0.5% to 1%), flat fees, or hourly rates. While this increases your costs, it also provides access to expert guidance, customised planning, and long-term strategy. Advisors can help you avoid emotional decisions, optimise taxes, and improve portfolio performance through disciplined investing and planning.
In essence, DIY is cost-effective if you have the time, knowledge, and discipline. Professional advice costs more but may add value through personalised strategies and peace of mind. The right choice depends on your confidence, the complexity of your needs, and your willingness to manage your financial future independently.
DIY Investing vs. Professional Advice
With DIY investing, you have full control over your portfolio with lower costs. It’s ideal for investors who have the time, discipline, and knowledge to research markets, assess risk, and manage their investments independently. However, it also involves greater responsibility, and emotional or uninformed decisions can lead to costly mistakes.
In contrast, professional financial advice offers expert guidance tailored to your goals, risk tolerance, and life situation. Advisors guide you in planning your investments, managing taxes, preparing for retirement, and much more. While their services come at a cost—usually a fee or percentage of assets—they provide structure, experience, and peace of mind.
Your choice between DIY and a financial advisor comes down to how confident you are, how much you know about investing, and how complex your finances are. For simple portfolios, DIY may suffice; for complex situations, professional advice can add significant long-term value.
