Enter for a chance to win $5,000!

Skip to Main Content
Retirement

The Truth About Investments

Myth: I don’t need an investing professional. I’ll save money and my investments will do just as well if I use online brokerage services.
Truth: Always trust the important stuff to the pros. Professionals have years of training and experience, and it is their full-time job to manage your investments.

We’ve all seen the clever online brokerage ads offering free trades, “supercharged” services, and even investment apps for your phone. These companies have made do-it-yourself investing easier and cheaper, so the question isn’t can you do it, but should you?

Cheap Isn’t Always Better

Most online brokers lure you in with 100 free trades and fees that are less than $10. It’s easy to think you’ll save on commissions or other fees you’d pay a pro to do the same job. But, because online brokers make it so easy to buy and sell, the do-it-yourselfer ends up trying to time the market—and losing money along the way.

Based on the history of the S&P 500, a benchmark for stock market performance, investments held for 30 years average 12% annual growth. Timing the market can reduce returns by more than 7%.

chart

Market chaos, inflation, your future—work with a pro to navigate this stuff.

Investors who use a professional simply don’t buy and sell as often, which makes it more likely for them to reach their investment goals because they aren’t trying to time the market.

What Are The Options?

Take a look at some popular brokerage sites, and you’ll probably find an option offering professional help. Even the folks promoting do-it-yourself investing know you’ll need some tips somewhere along the way!

So why not start things off under some professional guidance? An investing professional will help you nail down your goals, identify problems and opportunities, understand future tax implications of your investments, and stay on top of new products and rules.

And, when difficult times come, like the 2007–2008 market downturn, your investing pro will be there to stop you from selling in a panic, keeping you on track.

How Do I Find A Good Investing Professional?

Need help? Try this free and easy way to find an investing professional in your area.

This article provides general guidelines about investing topics. Your situation may be unique. If you have questions, connect with a SmartVestor Pro. Ramsey Solutions is a paid, non-client promoter of participating Pros. 

Ramsey Solutions

About the author

Ramsey Solutions

Ramsey Solutions has been committed to helping people regain control of their money, build wealth, grow their leadership skills, and enhance their lives through personal development since 1992. Millions of people have used our financial advice through 22 books (including 12 national bestsellers) published by Ramsey Press, as well as two syndicated radio shows and 10 podcasts, which have over 17 million weekly listeners. Learn More.

Related Articles

What is a financial consultant and a financial coach?
Retirement

What Is a Financial Consultant?

You’ve heard all the names: financial consultant, advisor, coach. What’re the differences? And how can they help you with your money problems? Let’s break it down.

Ramsey Solutions Ramsey Solutions
Thank you!  Your guide is on its way.

Invest In Your Future With a SmartVestor Pro

Find Your Pros

Invest In Your Future With a SmartVestor Pro

Find one near you for free and navigate the ups and downs of the market with the help of an investing pro.
Find Your Pros

Invest In Your Future With a SmartVestor Pro

Find one near you for free and navigate the ups and downs of the market with the help of an investing pro.
Find Your Pros