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  • Team ArthaPurna

Financial Planning- Need an advisor or Doing it Yourself?

Updated: Sep 1, 2022

The Introduction

The realm of financial consulting is flourishing. There appears to be someone clamoring to manage money everywhere one looks, from Robo-advisors to banks, brokerages to independent financial advisors and financial planners. Financial planning is establishing a framework for accomplishing your life goals in a systematic and planned manner while avoiding surprises and shocks. It has goals, including identifying capital requirements, formulating financial regulations, and ensuring that limited financial resources are used to their full potential.

"Never rely on a single source of income," Buffett advises. Make a financial investment to establish a secondary source. “As a result, investing is vital not just to achieve financial objectives but also to lessen reliance on a single source of income and protect from financial ruin if the primary source of income suddenly disappears.

To do it yourself or not to do it yourself, that is the question!

Nevertheless, to seek financial advice or do it yourself? It depends on person to person and their risk assessment strategy and the kind of investment he/she is ready to make. Recently there has been a surge in individuals managing their finances through different apps in the wake of the pandemic.

Professional financial advisers, who compete with such business organizations, are warning investors about the dangers of going it alone, especially in light of recent

global stock market turbulence. A financial adviser could assist with the crucial work of determining how much risk investors are willing to face and ensure that they establish a well-diversified portfolio to avoid their assets collapsing. While some DIY platforms offer pre-built portfolios based on an investor's aim and risk tolerance, advisers believe that getting to know their clients allows them to design a more accurate and personalized basket.

DIY investment platforms may focus on tax-free investing or push fund suggestions. However, a financial consultant or planner will start by looking at the clients' objectives. They invest with a proven track record, investment experience, professional qualifications, and regulatory obligations to do it successfully," a financial planner would have the discipline to keep a long-term

perspective in the face of global market turbulence.

Possible, but with lot of (unending) hard work!

If one invests in a plan by doing it yourself (DIY), you can save money on the advisor's fee and earn a little more. However, you must do everything yourself, from financial planning to execution to monitoring, to ensure that you do not lose your investment funds. However, DIY will be advantageous only if you are acquainted with the nitty-gritty of financial planning and have the time to study to improve your knowledge, do research to identify suitable investment opportunities, and periodically evaluate your investments. Otherwise, it would be better for you

to focus on what you can do better and increase your efficiency to earn and invest more and leave your assets in the hands of a trustworthy advisor.


To conclude, it is a matter of personal finance management, the knowledge of financial markets, the time one has for investment and many more factors. DIY and hiring a consultant have their pros and cons, but it depends on one's financial needs and requirements and knowledge of the market.

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