Should you invest on your own instead?

Some people with an IRA or taxable investment account consider managing their account themselves. If you have sufficient resources, time, knowledge, discipline and desire, that can be effective. However, most people lack at least one of those critical components. If you do want to do it on your own, WealthStep generally recommends utilizing low-cost, passively managed, pre-built portfolio mutual funds (e.g. Vanguard Target Date Funds or Target Allocation funds, or for more flexibility but more work maintaining the target allocation… a simple portfolio combining a global stock fund and a global or broad US bond fund). However, such funds often lack full diversification and pose complications from a tax viewpoint if you need to make an adjustment in the future (in the case of TDF’s and TAF’s), or if your risk profile and planning needs does not match the risk profile of the Target Date Fund or TAF. Additionally, doing it alone might leave you without some important advice resources, which can have a big impact on whether or not you achieve your goal. As an analogy, you can buy a cheap car that may reduce the speed to your destination, or build and maintain your own car, but it might not get you to your destination. Be sure to consider the full picture, including opportunity costs (i.e. the cost of mistakes) rather than just the sticker price or cost on the surface. By the way, if you have the resources, time, knowledge, discipline and desire… we encourage you to consider a career in objective financial advice, helping other people get to their financial destination!