IN Brentwood-Baldwin-Whitehall Spring 2016 | Page 15

INDUSTRY INSIGHT

YOUR RETIREMENT

SPONSORED CONTENT

An Argument Against
Do-It-Yourself
Investing

O

f late, it seems that there are more and more individuals
managing their financial plans with an assortment of
internet-based tools marketed to supplant the services of a
human financial advisor. In a financial marketplace that has become
increasingly complex, and with the decline in the use of definedbenefit pension plans, this is a very dangerous trend.
When we get ill, we go to a doctor. When we get into legal trouble,
we seek the advice of an attorney. Why do we think it is appropri ate
to navigate the multifaceted financial landscape without professional
advice?
In a report titled “Alpha,
Beta, and now Gamma,” David
Blanchett and Paul Kaplan
of Morningstar found that
individual investors can add approximately 1.59% annually to returns
by simply making more intelligent financial planning decisions. These
decisions include asset location and withdrawal sourcing, total wealth
allocation, and a dynamic withdrawal strategy, among others. These
are the value-added actions and services that highly trained and
ethically based financial professionals can provide.
Perhaps the greatest service that a financial advisor can provide is
wise counsel during troubled times. Many do-it-yourself investors have
been pushing the panic button in response to recent market volatility.
While we can’t control what happens in Washington, or on Wall
Street or Main Street, we can control how we prepare for and respond
to the resulting gyrations. Thoughtful goal identification, sound
financial planning, disciplined investment, and responsive client
services are things we can control.
Sound investment management is about consistently making good
decisions over time. Investors who succeed do so long term by sticking
to their plan, especially when the markets are dicey. The current
market volatility is uncomfortable, but it’s not unusual or unexpected.
Investors working with professionals are being advised to stay the
course and plan for the long haul.
My job as an LPL Financial Advisor is to take the emotion out of
the process. If we react irrationally during emotional situations we no
longer have a process, but instead a fad. Investors trying to do it on
their own, or using a “robo” advisor, lack the support and structure to
prevent emotional decision making.
By remaining rational and disciplined we prevent investors from
straying off their path of long-term objectives. Another advantage
of using a Financial Advisor during volatile times is relying on his/her
education and resources. I have spent as much as six weeks a year
in continuing education. In addition, most Financial Advisors have
tremendous resources available to them through their broker/dealers,
investment companies and other independent sources.

Lean on a good Financial Advisor’s experience, education and
resources in these volatile times. Let my 30 years of experience enable
you to navigate toward the right course for you.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or
recommendations for any individual.
There is no assurance that the techniques and strategies discussed are suitable for all investors or will yield positive
outcomes. Investing involves risks including possible loss of principal.
Securities offered through LPL Financial, member FINRA/SIPC.
This Industry Insight was written by Edward J. Harris, CPA.

For more than four decades, Edward Harris has provided his clients
with professional service in wealth planning, investments, tax
planning and preparation, as well as estate planning. Ed is fully
licensed as a Certified Public Accountant and LPL Investment Advisor
Representative. To maintain his licenses, Ed upholds high ethical
standards and meets the profession’s rigorous requirements for
ongoing education. He has access to variable annuities as well as
accident, health, and long-term care insurance. For more information
contact Edward Harris at 724.942.3300 or visit www.harriswm.com.

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