About This Episode
In this episode of GDS Unplugged, Glen and Robert dive into the world of do-it-yourself (D.I.Y.) financial planning. While managing your own investments can be empowering, it also comes with significant risks. From emotional decision-making to tax missteps and sector bias, this episode unpacks the common challenges that can derail even the most well-intentioned D.I.Y. investor.
If you're a seasoned self-manager or just considering taking the reins, this episode offers valuable insights and considers when it might be a good time to partner with a professional.
The Allure and Risk of Going It Alone
D.I.Y. investing can feel rewarding. You’re in control, you make the calls, and you may save on fees. But as Glen and Robert explain, the biggest pitfall isn’t lack of knowledge; it’s overconfidence. Many D.I.Y. investors believe they can beat the market, but research shows few actually do. The emotional rollercoaster of fear and greed often leads to poor decisions, like chasing hot stocks or panic-selling during downturns.
Emotions vs. Experience
Fear and greed are powerful forces. D.I.Y. investors often get caught up in market hype or media-driven panic. Glen and Robert share real-life stories of clients who lost significant wealth by making emotional decisions, like over-investing in a single stock or selling during a market dip. At GDS, our role is to help navigate volatility with perspective developed through years of market experience.
The Tax Trap
Taxes are another minefield for D.I.Y. investors. From short-term capital gains to wash sale rules, the tax implications of your trades can be costly if you’re not careful. Glen and Robert highlight how a lack of tax strategy can double your tax bill, or worse, invalidate deductions you were counting on. While we don’t provide tax advice, we work closely with clients and their tax professionals so that investment strategies take tax considerations into account.
Time Is Money
Managing your own portfolio isn’t just about having the knowledge; it’s also about having the time. That’s why even former financial advisers, clients who know the markets well, turn to GDS to help them reclaim their time. As life evolves, so do personal goals and values. For many, the priority shifts toward spending more meaningful moments with family or pursuing personal passions. That’s where GDS Wealth Management steps in, handling the financial complexities so our clients can focus on what matters most.
Real-Life Lessons
From the client who lost millions betting on a single stock to the one who narrowly avoided disaster by diversifying just in time, Glen and Robert share compelling stories that underscore the importance of having a strategy and a trusted adviser. These aren’t just cautionary tales; they’re reminders that financial planning requires time, strategy, expertise, and focus.
Why GDS?
At GDS Wealth Management, we don’t just manage money; we build relationships. We take the time to understand what is important to you and tailor our strategies accordingly. We’re not here to tell you what you want to hear; we’re here to help you succeed.
Resources
Ready to take your learning to the next step?
- Connect with Glen Smith and Robert Casey on LinkedIn.
- Check out our blog on Strategic vs. Tactical Investing.
- Subscribe to our YouTube channel.
- Contact GDS Wealth Management for a complimentary financial consultation.
- Submit your questions to Glen and Robert, GDS Unplugged mailbag by emailing gds@gdswealth.com.
Why Listen?
This episode is a must-listen for anyone managing their own investments or considering it. Glen and Robert break down the emotional, strategic, and tax-related challenges of D.I.Y. investing, and explain how a professional adviser can help you avoid costly mistakes. Tune in to learn how to protect your portfolio, your time, and your future.
GDS Wealth Management (“GDS”) is an investment adviser registered with the Securities and Exchange Commission (“SEC”). Registration does not imply a certain level of skill or training. The information provided in this blog and podcast is for informational purposes only and should not be construed as investment advice or a recommendation to buy or sell any specific securities. All investing involves risk, including the potential loss of principal. Past performance is not indicative of future results. The examples provided are for illustrative purposes only and do not reflect actual client experiences or outcomes. Tax information provided is general in nature and should not be construed as tax or legal advice. For additional information about our advisory services, fees, and disclosures, please visit www.gdswealth.com.
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