If you prefer to live life on your terms, you might like the idea of managing your own investments, too.
Self-directed investing (also known as DIY-investing) is when you manage your investment portfolio without help from a financial advisor or robo-advisor.
From the stocks you buy to the trades you make, all the decisions are in your hands.
Need help deciding if self-directed investing is right for you? We’re covering the pros and cons of this approach – and how you can take advantage of a cash back offer for DIY investors through our partner Qtrade Direct Investing®:
This approach may be right for you if you’re looking for:
The biggest draw to a DIY approach for many investors: lower fees. Since you’re managing your own portfolio, you won’t pay fees for an advisor to buy and trade investments for you.
Self-directed investing can be a rewarding way to put your financial literacy to the test. With your portfolio, you can take an active approach (making frequent trades as stocks rise and drop in value), or a passive one (sitting on the same investments over a long period of time). It’s all up to you!
With robust online trading platforms like Qtrade, it’s never been easier to manage your own investment portfolio. You’ll have all the tools you need right at your fingertips.
With investing, it’s generally true that you can’t have reward without some risk. Before you decide to invest on your own, consider the following:
With any investment or strategy, the value of your portfolio can fluctuate. Make sure you have savings set aside and don’t invest money you plan to use in the immediate future.
As you research different investments and strategies, you could be subject to misinformation. It’s important to ensure the research you’re referencing comes from credible sources.
If your risk tolerance is low, self-directed investing may not be for you. When markets are down, it can be easy to have a knee-jerk reaction and make drastic changes to your portfolio.
Until you feel more comfortable investing money in the market on your own, it may be best to work with a financial advisor for guidance.
As the one managing your investments, you need to stay on top of making decisions as the markets change.
But if you prefer the “set it and forget it” approach, a guided portfolio may be a better fit.
Learn more about the differences between self-directed and guided portfolios.
You’ve made the decision to start managing part or all of your investment portfolio on your own. What are the next steps? Let’s get into it!
Your investment strategy will look very different depending on your time horizon.
Learn more about how market volatility works.
How much money do you feel comfortable investing in the market each month?
It all depends on your expenses and cashflow, as well as what your goals are.
Check out our blog on zero-based budgeting to find how much money you have left over to invest each month!
Ready to take control of your investments? Check out Cambrian’s Online Investing page for all your DIY Investment options and offers!
Disclaimer
Online brokerage services are offered through Qtrade Direct Investing, a division of Aviso Financial Inc. Qtrade Guided Portfolios is a division of Aviso Financial Inc.
The information contained in this article was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete. This article is provided as a general source of information and should not be considered personal investment advice or a solicitation to buy or sell any mutual funds and other securities.
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