Want content like this in your inbox each week? Leave your email here.
diy
DIY or D-I-Don’t?
DIY, DIFM, or In-Between
In many industries, people distinguish between DIY and DIFM: “do-it-yourself” versus “do-it-for-me.” The same is true of investing and financial planning.
Whether you are trying to build a deck or a retirement portfolio, the internet is full of pertinent information to help you on your way. You may not be a carpenter, but you may have the tools and skills to build a deck. Add some information, time, and motivation, perhaps that new deck will appear in your backyard through your own efforts.
A successful DIYer has all of those things. It does not always work out, but when it does, someone has used their own skills and efforts to do something many others pay for.
When the do-it-for-me or DIFM route works out, people trade money for the time and abilities of professionals in order to get what they want and need. I’ve mentioned before that I mow my lawn with a checkbook—a textbook case of DIFM.
When it comes to plans and financial planning, we believe that is either a DIY thing—you are the expert on your plans and planning—or a collaborative process of discovery. We may support your efforts, help you define or refine what you’re trying to do, maybe do some arithmetic, but you are still the expert.
On the investment front, though, we operate on a DIFM basis. We strive to grow the buckets: we research investments and manage portfolios for those who do not want to go the do-it-yourself route. DIYers have plenty of resources available other places; we’re busy trying to grow the buckets for those who say “do it for me.”
(Of course, our perspectives on everything from planning to investing are available online 24/7 to anyone with an interest in reading our blogs, listening to the podcasts, or watching the videos. There are some DIYers who check in regularly there. But our one-to-one efforts all go to investment services on a DIFM basis.)
Anybody could be a DIYer, in any number of areas… but it doesn’t mean you have to DIY. Clients, if you would like to talk about this or anything else, please email us or call.
Want content like this in your inbox each week? Leave your email here.
Play the audio version of this post below:
DIY, DIFM, or In-Between? – 228Main.com Presents: The Best of Leibman Financial Services
This text is available at https://www.228Main.com/.
DIY and Dangerous Doors [VIDEO]
Want content like this in your inbox each week? Leave your email here.
Through a Dangerous Door
Life in the 21st century is more connected and accessible than ever before. The Internet has brought whole new worlds of opportunity that would have been all but unimaginable before.
New opportunities have also created new pitfalls. Online stockbrokers have opened new doors for small-time traders, racing to cut commissions and expand access to trading instruments—even ever riskier ones.
Traditionally, trading features such as derivatives and margin trading were reserved for experienced investors who had money to lose. New online trading platforms have been pushing down the barriers to entry, allowing traders with just a few thousand dollars to their name to make heavily-leveraged speculative bets.
Our investment philosophy centers on traditional equity investing. We believe in owning pieces of real companies that have physical property and actual products. This provides no guarantees for us; equity investments are considered volatile, and they risk loss if a company disappears from the map.
Even so, these risks are small potatoes compared to what investors may get themselves into when they start playing around with complicated investment vehicles. Derivative investments can very easily be wiped out, and margin traders may find themselves owing more money than they put in to begin with. Traders beware!
At some point, it seems frankly irresponsible to turn inexperienced traders loose with such dangerous financial instruments. (In June, tragedy followed when a young trader misread his online trading statement and thought he was $700,000 in debt.) Online platforms have opened some doors that would have been best left closed.
Our goal here at 228Main.com is to make investing more accessible, more transparent, and more understandable for our clients. Part of that mission is making sure that we are not steering clients into inappropriate investments, a protection that do-it-yourselfers trading online lack.
We do not believe our role as advisors is to play “high priest” and tell you that we cannot be bothered to explain things to laypeople: we want to lay everything out on the table and make sure that our clients understand what they are getting into.
Clients, if you have any questions or concerns please call or email us.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.
All investing involves risk including loss of principal. No strategy assures success or protects against loss.
Stock investing includes risks, including fluctuating prices and loss of principal.
Want content like this in your inbox each week? Leave your email here.
You must be logged in to post a comment.