The Real Cost of DIY Investing

By Chris Palabe, CFS®, AIF®

DIY (Do It Yourself) investing has given investors the ability to invest on their own. Going at it alone comes with hidden costs and risks that aren’t always obvious. In this article, we break down the true price of DIY investing—from costly mistakes to missed opportunities—and share strategies to help you make the most of your investments. Whether you’re new to investing or looking to refine your approach, understanding these potential pitfalls is key to long-term financial success.

What Are the Drawbacks?

1) Time-Consuming

One of the most significant drawbacks of DIY investing is the amount of time and effort it can require. Unlike hiring a financial advisor who can manage your investments on your behalf, investing on your own puts the responsibility of research, analysis, and decision-making squarely on your shoulders. This means you’ll need to stay up to date with market trends, research potential investments, and continuously monitor your portfolio to keep it aligned with your goals and risk tolerance.

For the average person, this level of involvement can be time-consuming and overwhelming. With busy work schedules, family commitments, and other responsibilities, it can be challenging to find the time and mental energy to devote to managing your investments effectively. Many DIY investors often find themselves poring over financial reports, analyzing charts and graphs, and researching new investment opportunities late into the night, sacrificing precious time that could be spent on other hobbies or interests.

2) Potentially Emotionally Stressful

The responsibility of managing your investments and making crucial financial decisions can be overwhelming, especially when dealing with volatile markets or unexpected events that can impact your portfolio’s performance. Investors may experience anxiety, fear, or uncertainty, especially when faced with losses or unexpected changes in the market. You may also feel a sense of pressure to make the right investment decisions, which can lead to feelings of self-doubt.

Unlike working with a financial advisor who can provide a professional’s perspective, DIY investors may also become too emotionally attached to their investments, which often leads to poor decision-making. It’s possible they may hold on to underperforming assets for too long, ignoring warning signs or market trends, or make impulsive decisions based on emotions rather than logic. ^[1] In the end, the emotional stress of investing on your own can take a toll on your mental health, leading to burnout and anxiety.

3) Detracts From Important Areas of Life or Work

Going on your investing journey solo has the potential to detract from your personal or professional life, especially if you’re not prepared to handle the time commitment or stress that comes with managing your investments. For those with busy lives, this time commitment can take away from other important activities, such as spending time with family, pursuing hobbies, or advancing your career. This is why it’s critical to be realistic about the amount of time and energy you can commit to managing your wealth and make sure it aligns with your goals and priorities.

4) Costly

Many individuals who invest on their own have the idea that they’re saving money, but the truth is that it can be costly, especially for novice investors who lack experience or knowledge about investing. Without the guidance of a financial advisor, DIY investors may make expensive mistakes, such as buying or selling at the wrong time, investing in high-risk assets, or failing to diversify their portfolio. These mistakes can lead to significant financial losses, reducing the potential returns of their investments.

5) Suboptimal and Risky

Most investors who are not well versed in finance typically lack the expertise or resources available to professional financial advisors. While some DIY investors may have a basic understanding of financial markets and investment strategies, they may not have the in-depth knowledge or experience necessary to make informed investment decisions.

Financial advisors, on the other hand, have years of training and experience, as well as access to a wide range of investment research and analysis tools that can help them identify the best investment opportunities and manage risks. They provide a personalized investment strategy based on your financial goals and risk tolerance, which can help ensure you are investing in a way that aligns with your needs and objectives.

Understanding the Real Value of a Financial Advisor

At the core, a good financial advisor brings value in two major ways: growing your money (offense) and reducing your tax burden (defense).

Even the small, everyday financial choices people make—like how they invest, when they withdraw money, or how they structure their income—eventually add up and impact their bottom line. And that’s where a skilled advisor makes a real difference: implementing each decision in a way that works together to optimize your wealth.

Need Help With Your Investments?

If you’re like many of our clients, your busy schedule leaves little time to actively manage your investments. While DIY investing may seem like a cost-effective option, it often requires more time, knowledge, and attention than most people can realistically spare.

Partnering with an experienced advisor allows you to delegate the complexities of investment management, giving you more time to focus on what truly matters—your career, family, and personal goals.

At Palabe Wealth, we develop customized investment strategies tailored to your financial objectives and risk tolerance, providing experienced guidance to help you navigate market fluctuations with confidence. Ready to take the stress out of investing? Schedule a 20-minute introductory phone call or call us at 847-249-6600 to learn if we are the right fit for your financial goals.

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.

All investing involves risk including loss of principal. No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

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^[1] “How Emotions Can Influence Your Financial Decisions”, City National Bank, 2025