I often get asked the question, “Why should I involve a professional with my investing, when I can do it myself?”. To me, the answer is very simple, but there are lots of reasons why. The analogy I like to use is this; if you are unwell, you go and see a doctor. Especially if it’s serious, like an operation, you will go and see a surgeon. Same with a suit, if you want a suit made, very few people will sew it themselves; they will get a tailor to do it. This same logic should apply to finances and investments. Unless you are an expert, like a fund manager, financial analyst, etc, having the input of a professional is always going to be beneficial. Here are five key ways financial advice is better than DIY.

1. Avoiding Scams

Back in 2021, I wrote an article on ‘How to Spot An Investment Scam’ (you can check it out here:

https://danielleteboul.com/2021/12/03/how-to-spot-an-investment-scam/: Why Financial Advice is Better than DIY

Investment scams are still on the rise, with many ‘investments’ offering huge returns over a short period of time. These may either be Ponzi schemes, or just a way to con you out of a lump sum of money. A professional will be able to spot an investment scam, understand the rules and regulations of the country they provide advice in, and could potentially help you save losing a lot of money.

2. Confidence in Investing

If you’re unsure how to even start planning your finances, a professional will guide you with your financial goals and objectives, and put forward an investment plan that will achieve these goals, whilst still being within your means and circumstances. They can provide you with confidence during your investment journey, supplementing their advice with knowledge and data. For example, I know many people that think they are a risk-taker and an adventurous investor. But, as soon as there is an economic downturn, such as Covid or the Russian invasion of Ukraine, they panic, and are concerned that their investment value has dropped. An advisor would be able to provide that person with the perspective they need to ignore short-term fluctuations and to take the emotion out of investing. For my article on this topic, click below:

https://danielleteboul.com/2021/05/27/how-to-take-emotion-out-of-investing/: Why Financial Advice is Better than DIY

3. Reminding You to Invest Long-Term

This links back to my first two points; normally if an investment offers amazing returns over the short-term, it’s too good to be true. Not only that, if you check on your investment every day for fluctuations, you may lose faith in your planning. Investment should be for the long-term. A lot of my clients plan for retirement; a long-term goal that is inevitable (we all have to stop working one day!). But even if you have mid- to long-term goals, your money is bound to go further than if you expect returns in one or two years. This is because investing long-term can withstand short-term fluctuations or drops in the market. Overall, the stock market has risen over the years; even with crashes like the Lehman Brothers, Covid, The Dot Com Bubble, and even The Great Depression. Your advisor will know this and encourage you to diversify and hold long-term, so that you benefit and achieve your financial goals.

4. Providing Something Tax Beneficial

Wealth and tax go hand-in-hand, and a lot of expats will require tax advice or need a tax-efficient investment. If you think about it, it’s pointless in doing an investment that eventually you will have to pay a hefty sum of tax on, and navigating tax is often confusing, time-consuming and possibly costly. Instead of trying to do it yourself, wasting time and possibly money, a professional can offer tax-efficient solutions, advise you on tax reliefs you are eligible for, and connect you with experts for more tricky tax situations. All of this means that you are saving time and also your investment is growing in the most tax-efficient way possible.

For my article on what tax relief you may be eligible for in Singapore, check out this link:

https://danielleteboul.com/2022/04/04/tax-relief-for-foreigners/: Why Financial Advice is Better than DIY

5. Tailoring and Reviewing

Going back to my initial analogy, when you get a suit made, a tailor will do it for you. If you need alterations, a tailor will also help you with this. This is the same with a financial professional; they will tailor a bespoke financial plan for you. Investing is not one-size-fits-all. Just because your friend is doing a certain investment, doesn’t mean it is the right thing for you. A professional will match your goals, lifestyle and personality with a suitable investment plan, and will tweak and make adjustments along the way. Financial planning is a process, one that may change throughout your life, so a financial professional will review regularly to make sure that you are on track.