DIY

The DIY or doing it yourself approach is where you are actively managing a portfolio of assets to achieve your specific financial objectives rather than relying on a paid human or automated financial advisor. It involves researching and selecting your investments, monitoring your portfolio’s performance, and making investment decisions.

DIY investing can involve various types of investments, such as individual stocks, bonds, mutual funds, ETFs, REITs and other financial instruments. To pursue this approach, you will use online brokerage platforms or investment apps to buy, sell, trade, and monitor your investments.

The biggest advantage of DIY investing is that it allows you to have more control over your investment decisions and potentially save on fees associated with hiring a financial advisor. Also, DIY investors can be more flexible in their investment strategies and can quickly adjust their portfolios when the market changes.

Is the DIY approch right for you?

The DIY approach may be best if:

you'd like to learn more about investment options and don’t mind putting in the time;
you want to know exactly where your money is invested and have full control; and
you don't want to pay any investment management fees.

Doesn’t sound like you? Check out the other approaches here!

How to Choose a Brokerage

When you are ready to choose a brokerage, consider the following:

Services and products offered: Consider what types of investments you want to make and into which type of accounts. Make sure the brokerage firm offers access to what you need.
Fees and commissions: Look for a brokerage firm with transparent and reasonable fees and commissions. These days, many brokerage firms charge relatively low fees. Make sure you understand the fee structure and any potential hidden costs before opening an account.
Technology and tools: Check what kind of technology and tools the brokerage firm provides to help you manage your investments. This could include mobile apps, online trading platforms, research tools, and educational resources.
Regulatory compliance: Make sure the brokerage firm is registered with and regulated by the Securities and Exchange Commission.
Customer service: Consider the quality of customer service and support offered that you may want. Ideally, you will have easy access to support when you have questions or issues with your account.

Note: Be sure to choose a brokerage firm that is a member of the Securities Investor Protection Corporation (SIPC), which is a non-profit organization created by the U.S. Congress to protect investors in the event of a brokerage firm’s failure. SIPC protection applies to the custody of securities and cash in a brokerage account, up to certain limits. Specifically, SIPC will protect up to $500,000 of securities and cash, with a maximum of $250,000 in cash, per customer, per account. However, SIPC does not protect against losses due to market fluctuations or other investment losses.

If you'd like brokerage recommendations, please reach out to your Finanli coach!