Managing your money and planning for your family’s future are two of the most important responsibilities in life—but it’s not always clear whether you should handle it on your own or partner with a professional. The DIY (do-it-yourself) approach can work well for some, while others find immense value in delegating this responsibility to a trusted financial advisor. So, how do you know which path is right for you?

Let’s explore together.

Can You Succeed as a DIY Manager of Your Money and Long-Term Plan?

The short answer is yes—if you have the right mindset, habits, and knowledge. But being a successful DIY investor is not about picking the right stocks or funds. It’s about emotional discipline, patience, organization, and a strong understanding of how all the pieces of your financial life fit together.

A skilled DIY investor is someone who can remain calm when markets are volatile and resist the urge to panic-sell during a downturn. When the market drops 20% or more (as it does with some frequency!) and their portfolio suddenly feels like it’s taken a major hit, they stay the course, understanding that volatility is part of the process and long-term investing rewards those who don’t react emotionally.

They also understand the power of diversification and low costs. Rather than chasing the latest hot stock or trend, they invest in broadly diversified global index funds and ETFs with low fees, knowing that keeping costs down and avoiding performance-chasing gives them the best chance at strong long-term returns. They recognize that they are not smarter or better informed than the collective wisdom of millions of global investors, and they don’t try to outguess the market.

But investing is only part of the equation. Successful DIY investors also know how to manage the tax side of things. For example, they might take advantage of years with low income to convert money from traditional IRAs into Roth IRAs, minimizing taxes now and creating a source of tax-free income for the future. They understand how Social Security timing can impact benefits, how income affects Medicare premiums, and how to structure withdrawals in retirement to reduce overall tax burdens.

On top of all that, they stay organized—tracking household budgets, projecting future expenses, and maintaining a plan that evolves as life changes. They also know when to bring in experts, like estate attorneys or insurance specialists, to fill in the gaps where their own knowledge might not go deep enough.

If this sounds like you—and you enjoy learning, tracking, adjusting, and planning—then DIY may be a great fit. But for many, especially those with complex financial lives or limited time, going it alone can feel more like a burden than an opportunity.

What Does a Financial Advisor Actually Do?

A common misconception is that financial advisors exist to beat the market or pick the next winning stock. But research consistently shows that this approach usually leads to disappointment. In fact, studies from S&P Dow Jones (SPIVA) have shown that over 85% of actively managed U.S. stock funds underperform their benchmarks over a 10-year period. Trying to time the market or jump in and out of sectors rarely works, including for professional managers.

So if it’s not about stock-picking or market timing, what value does a financial advisor bring?

First and foremost, they act as a behavioral coach. One of the biggest destroyers of wealth is poor timing driven by fear or greed. When markets drop—like they did in early 2020 during COVID or during the 2008 financial crisis—many investors feel the urge to sell. But often, the market rebounds before they get back in. Missing just the 10 best days in the market over a 20-year period can cut your returns in half. A good advisor helps you stay invested, reminding you of your goals and long-term strategy when emotions run high.

Beyond that, financial advisors look at your entire financial life, not just your investment portfolio. They develop customized, actionable plans tailored to your goals and situation. For example, they can help you decide whether it makes sense to delay Social Security to age 70 for increased benefits, and if so, how to bridge any income gap until Social Security starts to be drawn. They can recommend strategies for Roth conversions to take advantage of lower tax brackets in certain years, or suggest ways to reduce taxable income in retirement and avoid Medicare surcharges.

Estate planning is another key area where advisors provide value. They ensure your will, living trust, financial and medical powers of attorney, beneficiary designations, and other legal documents are in order, reducing the chance of family conflict or unintended consequences. They can also help structure charitable giving, legacy planning, and asset protection strategies to align with your values and wishes.

Risk management is another area where an advisor’s holistic view is essential. It’s not just about having the right insurance—it’s about understanding the risks you face across your financial life. Do you have enough liability protection? Is your business properly shielded from legal exposure? Are you overexposed to one employer’s stock or real estate holdings? A strong advisor helps spot those blind spots before they become issues.

Advisors also help coordinate your assets across various account types—brokerage, 401(k), IRA, pension, real estate, annuities—and build a truly diversified plan that accounts for all your sources of income in retirement.

Final Thoughts

Whether you’re managing your finances on your own or working with a professional, the ultimate goal is the same: a secure, fulfilling financial future.

If you enjoy learning about key areas of financial planning and evolving laws, practices and research, developing your own long-term plan, thinking strategically about tax optimization, and revising your plan as life changes—you may thrive as a DIY investor. But if you want a trusted partner who can bring clarity, structure, and confidence to your financial journey, a financial advisor focused on holistic guidance can also be a great member of your team.

After all, financial planning isn’t just about money—it’s about designing a life that gives you freedom, security, and peace of mind.