Would You Hire Yourself As Your Financial Advisor?

Would You Hire Yourself As Your Financial Advisor?
089photoshootings / Pixabay

Editor’s note: This our first guest post from Pam Krueger and we are excited to announce that she will be contributing to ValueWalk on a regular basis. After spending 20 years as a stock broker, Pam took a different course and is now devoting her time to teaching people how to manage their personal finances through her PBS show MoneyTrack.

Looking through the eyes of the typical investor, financial advisors have been vilified since the massive fraud Bernie Madoff pulled off years ago. And then there’s the internet, which has given us all the money management tools we need to make us feel comfortable enough to handle everything from budgeting to investing for retirement ourselves. But is it really smart to become your own financial advisor?

Financial Advisor

Study after study suggests we are our own worst enemies when it comes to investing our own money. That’s because we have to fight two big cross-currents: our emotions and the transaction costs we pay each time we make an investment or change our minds and sell something. Bloomberg pulled a few of these studies together and confirmed how much individual investors under