Top 4 Benefits of Managing Your Retirement Savings Yourself rather than Using a Financial Advisor

by Allan Jones

If you have been smart enough to save sufficient funds for your retirement, there shouldn't be any reason why you should be unable to manage your retirement savings yourself. Most people are able to save money that isn't sufficient to cover up all their day to day needs. The uncertain future looming ahead does not guarantee that the funds will last till the point you will require them. So it becomes necessary for one to invest one's retirement savings to generate consistent streams of income in addition to other ones that might already exist such as pension and superannuation.

Many retirees choose to avail the services of financial managers to help them invest their retirement funds in the right places. But seeking professional help comes with its own set of pros and cons. People usually know the advantages of using a financial advisor. But what are the disadvantages?

Save Money

The fund management agencies incur administrative and HR costs which are covered up by the returns generated by your funds. Similarly, financial advisors earn their living by charging people for their expert opinion. If you have even the least know how of what bonds and other instruments are, you can easily invest in them. Even if you don't, the internet today, is pretty much like a friend who knows it all. Simply surf the web and find out the options you have and which ones of them are more appropriate for your needs. Hence, doing it yourself may help you enjoy higher return on your investment.


Financial advisors are human after all and they may not always necessarily be right. If you understand the basics of finance such as how investments work, there is no reason why you should be unable to understand the differences among the various types of investment options.

The different factors that determine where you invest your retirement savings include:

* The period of time you are willing to wait for before getting returns on investment
* The minimum acceptable rate of return on your investments
* Your attitude towards risk
* The level of diversification of investments that you are ready to manage

Once you do understand what you want and invest time there should be no trouble in making the final choices.

Out of Touch

Seeking help from a financial advisor may make you feel completely dependent on him/her. What you should do is hire a financial advisor right at the beginning of your retirement and ask him to train you in a way that enables you to take care of your funds in the long run. Instead of being served by the fisherman, it is better for you to learn how to fish.


Most people opt for financial advisors to reduce the risk they run by investing their savings in certain areas. This notion is not entirely true. Financial advisors only suggest what is less risky and what is more risky. In actual, it is your choice that determines the risk involved. So if you are choosing relatively less risky options for investment, your financial advisor isn't really creating a difference.

Allan has been using a Ubank self managed super fund to save for his retirement and has been happy with the results. Allan is also a regular guest poster and has been featured on several personal finance blogs.

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