I’m stingy and like to save money. So, there are a few jobs around the house I try to do on my own. Changing a light bulb (still) fits my skill set, but anything much beyond that is too close to the edge of my “circle of competence” in home repair.
So, I turn to professionals when I need to. They are not free, but they are accountable, competent and their results can be quantified and measured for value.
Some people I know have essentially hired themselves as their own investment manager. They might have a portfolio they have built over the years of mutual funds, stocks and bonds. This saves on fees. But do they track their own performance? And I wonder how much time are they able to spend researching their choices given the time obligations of both family and professional duties?
The goal as I see it in investing is not to focus only on fees but to maximize investment returns after the impact of fees and taxes.
A full-time investment adviser can offer his or her clients a full-time focus on their portfolio and goals. They also provide accountability as their performance results over the long run are quantifiable. But perhaps more importantly, an adviser can provide an outside perspective and guidance in times of market turbulence when it can be needed the most.