DIY Financial Planning? Like Performing Your Own Surgery!

Nikkhiel Nerkaar
Nov 14, 2024By Nikkhiel Nerkaar
Financial Planning
You need expert-led financial planning, certainly not finfluencers advise

Ever tried fixing your own car to save money? How did that work out? Yet surprisingly, many people think managing their life savings is simpler than changing spark plugs. Let me share a tale that might make you think twice.

Meet Ashish and Amit (names changed) – two successful software engineers from Pune. Both earned well, and both dreamed big. Ashish thought, "How hard can investing be? There's Google for everything!" Meanwhile, Amit decided to consult a certified financial planner (spoiler alert: that's how I met him).

The Expensive Cost Of “No Cost” Services

Ashish heeded investment recommendations , stock tips from WhatsApp groups and YouTube gurus. He even created an Excel sheet to track his investments (God Bless). Amit? He got a professional to create a structured financial plan aligned with his life goals.

Let’s jump ahead, five years into the future:

Ashish's "diversified" portfolio: 70% in tech stocks (because he understood the sector), 20% in random cryptocurrencies (because FOMO), and 10% in his savings account (because panic)
Amit's professional portfolio: Strategically balanced across equity, debt and real estate with regular rebalancing and risk assessment
The Numbers That'll Make You Cringe

According to SEBI data, 90% of individual traders lose money in the stock market. Why? Because watching "Top 10 Stocks to Buy Now!" videos doesn't equal a degree in financial planning. Would you trust a YouTube tutorial to perform dental surgery? Then why trust your retirement savings to one? (PS: I recently started my YouTube channel that educates - https://www.youtube.com/@BeingWealthWise

Real Horror Stories (Names Changed to Protect the Embarrassed)

Remember the 2020 market crash? While DIY investors were panic-selling their portfolios, my clients were actually buying more – because we had planned for such scenarios. One client called it their "financial vaccine" against market viruses!

For Business Owners: Double the Risk

If you're running a business, DIY financial planning is like playing a game of chess while blindfolded. My client Vikram learned this the hard way when he mixed his business capital with personal investments. His colleague Sanjay, who worked with a financial advisor (ok, that’s me), created separate strategies for business growth and personal wealth – guess who slept better during the pandemic?

Why Professional Planning Isn't a Luxury – It's a Necessity

  • Emotional Discipline: Markets run on two emotions – fear and greed. A professional advisor is your emotional circuit breaker
    Goal-Based Planning: It's not about random investments; it's about mapping your life goals to financial strategies
  • Risk Management: Because one wrong move can wipe out years of savings
  • Tax Efficiency: Don’t run behind saving taxes. Really. (Connect with me on why this.)


The Wake-Up Call

According to recent data from HDFC Bank, investors who worked with professional advisors earned on average 3-4% higher annual returns compared to DIY investors over a 10-year period. That's not just numbers – that's the difference between retiring at 50 versus working till 65.

Think About It:

Would you repair your own AC?
Would you write your own legal contracts?
Would you diagnose your own illness?

Then why would you gamble with your financial future?

While I'd be honored to guide your financial journey, what matters most is that you choose a certified professional you trust – whether that's me or another qualified advisor. But here's the truth: Your financial future is far too precious to be someone's learning curve. The real cost of DIY investing isn't just the money you might lose – it's the dreams you'll never achieve because of amateur mistakes. Professional guidance isn't an expense; it's your financial insurance policy.

Action Steps (Because Your Money Deserves Better)

  • Stop treating investments like a hobby
  • Seek qualified financial advisors (look for proper certifications)
  • Demand a comprehensive financial plan, not just investment tips
  • Regular professional reviews of your portfolio

The Bottom Line

DIY might work for home decor, but when it comes to your financial future, professional guidance isn't an expense – it's an investment with the highest returns.

Remember: The most expensive advice is free advice that goes wrong.

P.S. Ashish finally became my client last year. His first words? "I wish I had done this sooner."