The Risks and Rewards of Self-Managing Investment Portfolios

Do you want to build wealth? Secure a happy retirement? Leave a solid legacy?

Investing is the best way to achieve all this.

If you’re reading this, chances are, you already thinking of making this journey. But perhaps you’re feeling nervous? Struggling on where to start?

There are so many options and opinions out there, which might make it hard for you to decide what’s best. But here’s one possibility.

You might be drawn to the idea of investing some of your savings into mutual funds or stocks. And why not? If you read the newspaper headlines, you might notice that bank interest rates seem to be getting lower and lower.

In fact, in some cases, interest rates could even fall below zero. Yes, believe it or not, this has actually happened in Japan!

What this means is that it’s becoming harder for you to generate passive income. Relying on bank term deposits alone might not be enough to help you achieve your financial goals.

You’re certainly not alone in this dilemma. Across the globe, plunging interest rates has created much anger and anxiety — particularly among older people who are depending on their savings to see them through retirement.

Naturally enough, this has sparked a great deal of controversy as savers nervously turn into investors. What is the benefit of putting your money into mutual funds? How does it compare with individual stocks? And which might be the better choice?

There’s a lot of noise out there. A lot of arguments and counter-arguments.

We want to cut through all of that. Give you a fair and balanced assessment. And, hopefully, this may help you make an informed decision that will allow you to secure your future prosperity and happiness.

Should I invest in mutual funds or individual stocks?

In a nutshell, a mutual fund is a basket of stocks put together to create a diversified portfolio.

They may represent different sectors — property, healthcare, manufacturing, and so on.

They may also represent different risk levels — low-risk, medium-risk, and high-risk.

A mutual fund may be beneficial if you feel comfortable allowing professional fund managers to do all the research and investing for you.

At first glance, this approach may be very desirable. It’s a great way to dip your toes into investing as a beginner. You only need basic high-level knowledge.

But, be warned, relying on a mutual fund may actually cost you a bit more in the long-run than doing it yourself.

How?

Well, for instance, many mutual funds come with management fees. This is a fixed annual or monthly fee that you pay the fund managers for them to handle your account. In addition to this, there may also be heavy transaction fees. You may get charged when you try to withdraw money from your fund.

Beyond these technical problems, the single biggest issue with mutual fund is this: you often don’t have control of what the fund is investing into.

For example, a fund manager may decide to invest in 30 different stocks for your account. How did she decide on these stocks? Why this combination? Is this actually the most efficient portfolio for your needs?

Think about it. You’re surrendering control. What you’re getting is a plain-vanilla one-size-fits-all approach.

At best, you’re losing the ability to tailor the portfolio to your individual preference.

At worst, the fund manager may be making a disastrous choice that may prove detrimental to your well-being in the long-run. You may actually end up losing money due to bad investment choices.

Wouldn’t you rather have more control over your own destiny?

Yes, investing in individual stocks requires a bit more time and work. However, it may turn out to be much cheaper than a mutual fund, as well as give you more flexibility and options.

You know your personality and goals better than anyone. Therefore, you’re empowered to choose stocks to fit your custom portfolio better than any mutual fund ever could.

Yes, power at your fingertips — why wouldn’t you do it?

A Solution for a Self-Managing Investment Portfolio

There’s no getting around this fact: researching individual stocks can be hugely time-consuming. This is why people often throw up their hands in frustration and surrender their money to fund managers who charge them excessive fees.

It’s unfair and inefficient, but for lack of a better option, they grit their teeth and do it anyway.

Chances are, you might feel the same way. You might be seriously tempted to go down the mutual-fund route. If only for the sake of time and convenience.

But wait!

Believe it or not, there is actually a better solution out there. One that takes the guesswork and time commitment out of stock researching.

A website called Wealth Morning might be exactly what you’re looking for. It provides you with an investment resource to help you discover potential opportunities in the stock market.

They have a premium newsletter called Lifetime Wealth Investor. It gives you premium research on what stocks to invest in — giving you exclusive access to a diversified range of stocks, ranging from medium-risk to speculative.

Yes, that’s right. The heavy lifting is already done for you. They do all the work so that you don’t have to pay the fees for a mutual fund. You can build your own portfolio and take control of your own investment journey.

If you’re looking to build wealth on your own terms, there’s never been a better time to get started!

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