I am fortunate, given my background in wealth management and insurance, to manage the investments for our household. As I have mentioned in previous articles, my husband and I have specific roles within our “finance and investment team”.

He acts as the CFO (chief financial officer), managing the day-to-day finances, while my role is CIO (chief investment officer). My responsibility is to invest our capital and follow our strategy, which, for the most part, has delivered sound returns.

However, as I grow older, I am acutely aware of the proliferation of new and far more sophisticated financial instruments, alongside the rapid expansion of digital assets. Consequently, I feel the time may be coming to consult an investment adviser to review our strategy and determine whether any adjustments need to be made.

Let’s face it: managing your money is one of the most impactful responsibilities of adult life. When it comes to steering your financial future, you stand at a fundamental crossroads: should you take the do-it-yourself (DIY) route, or should you enlist the guidance of a professional financial adviser?

This is not a one-size-fits-all decision. It’s a choice that hinges on your personality, knowledge, time, and the complexity of your financial life. Understanding the nuanced pros and cons of each path is essential to making the choice that will best help you achieve your goals.

The DIY approach

The DIY investor is the captain of their own ship. This model involves personally managing your investments, retirement accounts, tax planning, and overall financial strategy, often using low-cost online brokerages and investment platforms readily available from your bank.

Benefits of DIY finance

Cost savings: this is the most significant advantage. By eliminating professional adviser fees, which can typically range from 0.5 per cent to 1.5 per cent of assets under management annually, you keep more of your money compounding over time. Over a 30-year period, these saved fees can amount to a staggering sum, allowing money to stay in your account rather than going to an adviser.

Ultimate control and flexibility: you have complete autonomy over every decision. You can buy or sell investments the moment you decide and build a portfolio that aligns with your personal values — for example, I do not invest in anything that tests on animals. You can develop this strategy on your own timeline without needing to consult anyone.

Education and empowerment: the DIY path encourages you to become financially literate. You will learn about asset allocation, rebalancing, the impacts of withholding tax, and market cycles. This deep understanding can be incredibly empowering and builds confidence in your financial decision-making.

Speed and direct access: with a few clicks on your computer or phone, you can execute trades, check your statement, or rebalance your portfolio. There’s no need to schedule a meeting or wait for an e-mail back from an adviser.

Disadvantages of DIY finance

Burden of behavioural finance: this is the single greatest risk for the DIY investor. Financial markets are driven by two powerful emotions: fear and greed. When markets take a downturn, the DIY investor must fight the primal urge to sell and lock in losses. When markets are euphoric, they must resist the temptation to chase performance and buy at the peak. Without an adviser to provide a steadying hand, even the most knowledgeable individuals can make catastrophic, emotionally-driven mistakes.

Time and effort commitment: successful DIY investing is not a passive hobby; it is an ongoing responsibility. It requires hours of research, continuous monitoring of your portfolio, staying updated on tax law changes, and reading financial news. For many, this feels like a second, unpaid job.

Risk of knowledge gaps: the financial world is vast and complex. A DIY investor might be excellent at picking stocks but completely overlook crucial estate planning, tax optimisation strategies, or insurance needs. This can lead to blind spots that cost far more than an adviser’s fee would have.

Lack of a comprehensive plan: it is easy for a DIYer to focus solely on investment returns while missing the bigger picture. How do those investments fit into a cohesive plan for retirement, university funding, and legacy goals? Without a structured financial plan, you may be simply collecting assets without a clear road map to your destination.

Benefits of a using a financial adviser

Behavioural coaching and emotional discipline: this is arguably the most valuable service an adviser provides. They are an objective third party who can talk you down during a market panic and temper your enthusiasm during a bubble. This behavioural coaching alone can save an investor from mistakes that would dwarf a lifetime of advisory fees.

Holistic and expert knowledge: a good adviser looks at your entire financial life, including investments, taxes, insurance, estate planning, and retirement — and connects the dots. They bring expertise in areas you may not have considered, such as long-term care planning, tax-efficient strategies in retirement, and charitable giving techniques.

Structured, personalised financial plan: an adviser creates a detailed road map for your life goals. This plan answers critical questions: when can I afford to retire? How much do I need to save for my child’s university? Am I on track? This provides immense peace of mind and a clear, documented strategy to follow.

Saving you time and reducing stress: by delegating the day-to-day management and complex planning to an expert, you reclaim your most valuable asset: time. You can focus on your career, family, and hobbies, knowing that a professional is minding your financial future.

Disadvantages of using a financial adviser

Direct cost: as mentioned, advisers charge fees. These can be a percentage of assets under management (AUM), a flat fee, or an hourly rate. This cost directly reduces your net returns and must be justified by the value the adviser provides.

Potential for misaligned incentives: the financial advisory world has varying standards of care. Some advisers are fiduciaries, legally obligated to act in your best interest. Others may operate on a sales-based model where commissions can create conflicts of interest. It is crucial to understand how your adviser is compensated.

Finding the right fit is critical: not all advisers are created equal. Finding one who is competent, trustworthy, and with whom you have a good personal rapport takes effort. A bad adviser can be worse than no adviser at all.

Perceived loss of control: some individuals are uncomfortable delegating decisions about their money. While a good adviser will collaborate with you, the ultimate authority for implementing the plan often lies with them, which can be a difficult adjustment for a hands-on person.

Ultimately, the best path is the one that aligns with who you are. The disciplined, engaged, and financially-literate individual may thrive as a DIY investor. The person with a complex life, a low tolerance for financial stress, or a recognised tendency for emotional decision-making will likely find that a good financial adviser is worth far more than they cost.

The goal is not to pick a “winning” side, but to make a conscious, informed choice that sets your financial future up for success.

• Carla Seely has 25 years of experience in the international financial services, wealth management, and insurance industries. During her career, she has obtained several investment licences through the Canadian Securities Institute. She holds the ACSI certification through the Chartered Institute for Securities and Investments (UK), the QAFP designation through FP Canada, and the AINS designation through The Institutes. She also holds a MSc majoring in Business and Management from the University of Essex