Knowing When to Transition from DIY Investing to Working with a Financial Advisor

Signature Wealth Concepts, LLC |

As individuals progress through life, their financial circumstances evolve, often becoming more intricate with time. Many begin their investment journey independently, perhaps through workplace retirement plans like a 401(k) or by setting up individual accounts such as a Roth IRA. However, as complexities arise, the question emerges: when is it prudent to transition from a DIY investor to engaging the services of a financial advisor?

Signs It’s Time to Make the Transition:

  1. Increasing Complexity: As life becomes more complex due to factors like increased wealth, family dynamics, or a diversified portfolio, managing investments can become overwhelming. A sudden influx of wealth from inheritance or business success may require someone with experience to help you navigate effectively.
  2. Lack of Time or Expertise: Balancing personal and professional responsibilities may leave little time for thorough investment research and management. Additionally, navigating intricate financial products and strategies may surpass an individual’s expertise.
  3. Emotional Decision-Making: Emotional reactions to market volatility can lead to impulsive investment decisions. A financial advisor can provide a rational perspective, helping to mitigate emotional biases.
  4. Long-Term Goals and Retirement Planning: As retirement approaches, working to ensure financial security becomes paramount. A financial advisor can help align investment strategies with retirement goals, considering factors like risk tolerance and income needs.      
  5. Tax Optimization and Estate Planning Strategies: Complex tax regulations and estate planning considerations require specialized knowledge. A financial advisor can work with the client’s estate attorney to offer strategies to minimize tax liabilities and ensure a smooth transition of assets to heirs.

Benefits of Working with a Financial Advisor:

  1. Tailored Guidance: Financial advisors provide personalized advice based on individual goals, risk tolerance, and financial situation. They can tailor investment strategies to meet specific needs and objectives.
  2. Professional Expertise: Financial advisors possess extensive knowledge and experience in investments, wealth management, retirement planning, tax efficient strategies, and estate planning strategies. Their experience can help clients optimize investment opportunities and navigate complex financial situations.
  3. Diversification and Risk Management: Financial advisors can help clients construct diversified portfolios aligned with risk tolerance and investment objectives. By spreading investments across asset classes, they can help to reduce portfolio volatility and enhance long-term returns.
  4. Behavioral Coaching: Advisors offer emotional support and behavioral coaching during market fluctuations, helping investors stay disciplined and avoid reactionary decisions that may undermine long-term goals.
  5. Comprehensive Financial Planning: Beyond wealth management, financial advisors offer holistic financial planning services encompassing retirement planning, education funding, insurance analysis, and estate planning strategies. This integrated approach ensures all aspects of financial well-being are addressed.


In summary, the decision to transition from DIY investing to working with a financial advisor is influenced by increasing life complexities, time constraints, and the need for specialized experience. By recognizing the signs and benefits of professional guidance, individuals can make informed decisions to secure their financial future. Ultimately, working with a financial advisor can provide peace of mind and confidence in achieving long-term financial goals.



This informational and educational content does not offer or constitute financial, insurance, investment, legal, tax, or general lending advice. Your unique needs, goals and circumstances require and deserve the individualized attention of your own financial, legal, tax and other professionals. Phil Kim offers securities through Equitable Advisors, LLC (NY, NY 212-314-4600), member FINRA, SIPC (Equitable Financial Advisors in MI & TN). Investment advisory products and services offered through Equitable Advisors, LLC, an SEC-registered investment advisor.  Annuity and insurance products offered through Equitable Network, LLC. Equitable Network conducts business in CA as Equitable Network Insurance Agency of California, LLC, in UT as Equitable Network Insurance Agency of Utah, LLC, in PR as Equitable Network of Puerto Rico, Inc. Signature Wealth Concepts is not a registered investment advisor and is not owned or operated by Equitable Advisors or Equitable Network. Individuals may transact business, which includes offering products and services and/or responding to inquiries, only in state(s) in which they are properly registered and/or licensed. The information in this video is not investment or securities advice and does not constitute an offer. PPG-6630302.1(5/24)(Exp.5/26)