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Financial Residency

Oct 28, 2022

What does do-it-yourself (DIY) investment management look like? Taking this route isn’t for everyone. It depends on your situation and personal interest. Just because you can do it, doesn’t mean you should do it. If you want to do investment management yourself, learn how to do it right.

In this episode of the Finance For Physicians Podcast, Daniel Wrenne talks to Dr. Kris Roach, a financial planning client who talks about what it’s like to take this on during his first year of practice. Kris has quickly and accurately implemented high-level investment advice. He’s doing it for the right way for the right reasons.

Topics Discussed:
• Investing Knowledge and Experience:
◦ Before: Basic but vague understanding of the stock market
◦ After: Create and execute a financial plan to manage investments
• Why follow the DIY vs. professional path? Interest, curiosity, and inherent satisfaction
• Getting Started: Commit to learning portfolio process and motivated to achieve
• Analysis Paralysis? Plenty of options makes picking perfect funds intimidating
• Asset Allocation: Stick with active or passively managed funds, not both
• Information Overload: So much, so sort and shortcut through invaluable sources
• Time Investment: Takes a few months to set up accounts and select securities
• Downturn Temptations: Buy and invest in different stocks? Stick to your plan
• Ongoing Tasks: Fund accounts, rebalance, tax law harvesting, invest in the market
• Suggestions: If not interested in DIY, find a fiduciary to dedicate time to finances
• Fiduciary vs. Financial Advisor: Watch out for wine-and-dine opportunities