How many DIY Investors Do You Know

[frayne]

Just curious and thought I would pose the question as to how many people you personally know that are investment DIYers. Basically those who manage their portfolios without the aid of a financial advisor. I have many friends and darn near all of them use a FA/Broker and really don't have a good handle on what investments they actually own. I would think that we here at the ER forum are pretty much in the minority.

Thoughts, comments, etc. ?

 

[Midpack]

I don't know any in person, just a bunch here anonymously. Thank goodness for this place!

 

[REWahoo]

Other than on this forum and my two adult children, the number of DIY investors I'm acquainted with = zero. (I don't consider several relatives who have their entire nest eggs in CDs to meet my definition of an investor...)

 

[nash031]

Same as above - none in person, though I'm only really familiar with the financial workings of one person outside of this forum other than my family.

 

[sengsational]

Pretty much everybody at every megacorp. They pick something for their 401k funds and let it ride. Wouldn't that count?

 

[RobbieB]

I don't know any personally either.

I do know a guy on the home theater forum that does his own stuff, but he works for a broker and holds a securities license and I've never met him.

 

[NW-Bound]

... those who manage their portfolios without the aid of a financial advisor...

My two brothers, my sister and brother-in-law, now my children, son-in-law. My friends and former co-workers, but then we were all nerdy engineers. And I know of only one past coworker with an FA.


PS. The thread title should state "DIY investors". I first thought it was about people owning radial/table saws, floor jacks, pneumatic tools, etc...

 

[harley]

Pretty much everybody at every megacorp. They pick something for their 401k funds and let it ride. Wouldn't that count?

+1. Most of my ex-coworkers had no idea what their 401ks were invested in.

Other than that, one buddy (in person) is DIY.

 

[Ronstar]

My 3 former partners manage their own investments. Other than that - none personally. Most of the people I know work or used to work at megacorps that are actively marketed by FAs. And those people rely on the FAs to handle their investments.

 

[MRG]

Pretty much everybody at every megacorp. They pick something for their 401k funds and let it ride. Wouldn't that count?

I know one guy who proudly pays an FA 1% of other monies to have his FA tell him where to put his 401k contributions.

Other than 1. My sister, 2. a friend who's SO was a CFO, 3. me, that's the universe according to me.

 

[jjquantz]

Daughters and sons-in law are DIY. The thing is, about the only way I know of anyone else's investment process is when they say something like, "My guy tells me I'm doing OK." I suspect that there are DIYers out there that don't advertise the way that people with FAs do. So I would say that I know of several people who don't DIY, but the truth is, that for the vast majority of people I know, I haven't a clue.

 

[mickeyd]

I do not know the answer to that Q. My finances/investments are not discussed with anyone that I am around. DW's family recently went thru an inheritance issue and I believe that she discussed briefly that we invest on our own @ VG. Not even sure if they grasped what that means.

 

[Free To Canoe]

I don't know any in person, just a bunch here anonymously. Thank goodness for this place!

+1

I am racking my brain on this one. One friend is DYI but doesn't understand money (or investments). I used to have more but I have been losing them. One decided it was a good idea to turn his whole nest egg over to a pretty annuity saleswoman. I hope it works out for him.
Lost contact with people managing their 401ks when I left megacorp.

 

[GrayHare]

I'm sure DIYers are out there but finances tend not to be a topic of discussion with friends, at least not in detail, such as who is investing in what and how. Too much potential for hard feelings one way or the other.

 

[splitwdw]

I know 1 1/2 people. A co-worker and I talk stocks, compare online brokers and other investments. He's into real estate but I'm not. Sounds interesting but not something I'm looking to invest in. The half is a sister that has all her money in savings account and cd's. She lost money in the stock market years ago and is afraid of losing again. I'm always surprised at other friends that are using FA's. They talk about what the FA has them in and how their accounts are doing. Some of these are smart people that have successful businesses. We don't talk details but talk general.

 

[frayne]

Pretty much everybody at every megacorp. They pick something for their 401k funds and let it ride. Wouldn't that count?

Only if they know the name of the fund, exp. ratio and if it is an actively managed fund or and index fund.

I did taxes, five years for Block and three years for VITA and if I saw on a W2 if a person had contributed to a 401K I would tell them how smart they were for tax deferring income and saving for retirement. I would then ask them what kind of fund and exp. ratio and not a one out of probably over two hundred people could answer.

 

[W2R]

Just curious and thought I would pose the question as to how many people you personally know that are investment DIYers. Basically those who manage their portfolios without the aid of a financial advisor. I have many friends and darn near all of them use a FA/Broker and really don't have a good handle on what investments they actually own. I would think that we here at the ER forum are pretty much in the minority.

Thoughts, comments, etc. ?

I'm not really sure. It is surprising how many people do not even choose to do their own taxes, much less their own investing.

One woman at the gym found out that I am a DIY investor, and wanted a hot stock tip. I told her just index funds.

 

[youbet]

Pretty much everybody at every megacorp. They pick something for their 401k funds and let it ride. Wouldn't that count?

That would absolutely count. Determining an AA, making investment choices to support it and doing the "buy and hold" thing is the classic DIYer.

 

[RE2Boys]

, but the truth is, that for the vast majority of people I know, I haven't a clue.

Ditto

 

[youbet]

Only if they know the name of the fund, exp. ratio and if it is an actively managed fund or and index fund.

I did taxes, five years for Block and three years for VITA and if I saw on a W2 if a person had contributed to a 401K I would tell them how smart they were for tax deferring income and saving for retirement. I would then ask them what kind of fund and exp. ratio and not a one out of probably over two hundred people could answer.

Not being diligent and/or knowledgeable doesn't mean they are not DIYers. They are indeed doing it themselves.

 

[frayne]

Not being diligent and/or knowledgeable doesn't mean they are not DIYers. They are indeed doing it themselves.

We will agree to disagree or on a scale of 1-10, 10 being a true DIYer I would give the 401K crowd a 5. Unless they could meet the criteria above, knowing fund name, exp. ratio, managed or index.

I have seen too many people only contribute to a 401K because it was encouraged by their HR department and were absolutely clueless as to what they owned.

 

[Dash man]

My son is the only one I know other than myself for certain. I have two cousins I've pointed toward Vanguard to lower their expenses since they asked after receiving an inheritance, so maybe I know two more.


Sent from my iPhone using Early Retirement Forum

 

[youbet]

I know a number of people who have self-managed brokerage accounts which certainly implies they're DIYing for those. But I don't know if they utilize some form of financial advise or assistance such as robo-advisors or on-line advise commonly available from 401k administrators and similar.

I know a number of them seek financial advise through books, periodicals, web sites, newsletters, discussion groups, adult-ed classes, etc. Not sure if that would impact their status as DIYers or not. For example, if someone followed a newsletter recommended portfolio of low cost index funds with an AA appropirate for their age and circumstances, would that be DIY or "getting advise?"

And I'm at an age where the interaction between investing, taxes and estate planning can sometimes get complicated. I'm buying some advise to get my estate plan and some tax planning in synch. So, I don't know if I can even count myself as a DIYer purist.

 

[youbet]

We will agree to disagree or on a scale of 1-10, 10 being a true DIYer I would give the 401K crowd a 5.

OK, let's just disagree then. I say you are "doing it yourself" if you give it a try and even if you don't have a clue what you're doing. You seem to think some diligence, knowledge or skill must be involved.

Or, said another way, if you called the shots and didn't farm out the decision making to someone else, then you "did it yourself." Even if you were silly enough to do it totally uninformed, etc.

 

[cyber888]

I saw a financial advisor once (free consulting for my work's 403b), and that was it. I do DIY for everything else. I just do some rotation. Almost minimal small caps for me this year, and more blue chips and real estate. Most of my cash are in high interest muni bond funds. Muni bond funds I bought at the beginning of the year have appreciated a lot.