Should You Manage Your Own Portfolio?

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Active participation in an investment club is a great way to learn how to manage one's money in the stock market. NAIC, a non profit organization that has been mentoring investment clubs for about fifty years, has developed excellent instructional and analytic tools. Members learn how to evaluate companies. Having a few dollars in the game make things interesting.
The prime objective of NAIC-sponsored clubs is learning about investing. Second on the list is social...learning with friends. Third is making money at investing. Most investment club members have their own accounts; the amount of money in the club is enough to keep up interest,but it is not the family fortune.

Tim of MD 5:20PM June 22, 2009

There is a rather strange assumption in the article that the illegal seizure of all stocks by the consortium of transfer agents in violation of Article IV of the US Constitution Amendments was ever acceptable. For that matter that permanent adverse possession by broke makers has ever been tolerable.
Having had very large amounts of my net worth stolen by such criminal gangs in the trustee and financial intermediary and broke maker busymesses, the flagrant criminal abrogations of human and civil rights involved in that assumption are offensive to me. It was in fact the criminal theft nature of the trustee and broke maker and other financial intermediary busymesses that persuaded me 48 years ago that I was necessarily going to have to manage my own money.
When I pay my money for something, I expect to receive something of value. Transportable to my choice of where if ever to sell it without interference from thugs maintaining adverse possession and theft of the income and potential (actual in some cases) wipeouts of the "electronic only" property. That an author is capable of talking about those criminal abrogations of Article IV of the US Constitution Amendments (illegal searches via infinitely hackable web sites and illegal seizures via permanent adverse possession) seems very strange indeed to me.

Bob Grumbine of NV 10:19AM June 09, 2009

Of course the average Joe isn't capable of investing for his own retirement! He needs someone like Bernie Madeoff to handle his money!
Guys like him can convince an investor that they can personize the investments for his perticular needs. Depends on how fat you are, how tall you are, but most of all on how stupid you are. Old people don't want returns on thier investments. Young people want big returns on thier investment.
You would have to be an idiot to believe "Investment Counsolers". They have a spiel that they sell thier knowledge with other peoples money. They obviously don't want to invest thier own money or they wouldn't have to have "clients".

charley of LA 8:55PM June 04, 2009

This is a good introductory article on self directed investing. My only disagreement is that YOU, the reader, need to take control of your financial future--whether you self direct using an online broker or have someone else managing your money for you.
Self directed investing using an online broker is not for everyone. But even if you aren't making day to day decisions, you need to understand what your financial adviser is doing and why! And if you think your adviser is not looking out for you, find someone else to manage your money.
Remember, no one cares more about your money than you do!
Get educated and learn how markets work, where the economy is headed, and what stocks will do well in these uncertain times.
If you want to learn about markets, stocks, sectors, and the economy in order to take responsibility for your financial future, I recommend visiting ttp://www.selfdirectedinvestor.com/.

Scott Nystrom, Ph.D. of MD 4:19PM May 31, 2009

Interesting article. I think that people should choose and manage their investments based on their experience and knowledge. They should use and leverage what they know to be successful. I found some great info about self directing from Equity Trust Company www.trustetc.com . Good info. Why not hold your funds in your retirement account and even grow it tax free with a Roth? Working in finance sector for the last few years, I'm all about investing in what I know and having access to funds that I never knew I could access before. I want to be in control of my nest egg (the one that's left).

Jen of OH 3:25PM May 26, 2009

Why not? with a little education and understanding about the market, you could do it yourself. Did we all forget the 60 minutes program years ago where the best financial analysts and planners, etc. picked stocks, along with junior high school students, and a chimpanzee? The chimpanzee that grabbed stocks off a rolodex did better than the best financial planners and professional investment professionals, and the junior high students came in 2nd. DO IT YOURSELF. Professionals are mostly clowns anyway. I am the dictator and I approve this message. www.dictatormovie.com

lucifer of FL 1:59AM May 26, 2009

I suppose you could get a good investment adviser if you had at least half a mill to invest with him/her. In today's market I doubt if I would venture in unless the argument to do so were very convincing.
I made some money years back. Being not too literate, I would screen funds through Kiplinger or by going through newspapers. I never allowed myself to be swayed by the 'pr' in articles in the media.
I thought funds may not give me dramatic returns but were somewhat diversified and the person/manger had all day to screen his investments and I did not.
I only used no load funds with no hidden charges.
I did very well. Friends who got individual stocks through a broker and would chide me for the taxes I paid, over 5 years, did not really do as well as I. Some lost a great deal.
My reasoning was, in part, that a fund can be tracked by the person over time. That is, the fund manager's performance is there for all to see. An individual broker - it is much harder to see a track record over time, and will he work as well for me as one who has more money to invest than I? I think not.

Joan Dalton 9:18AM May 24, 2009