6 Common DIY Portfolio Mistakes

By Michael Kay via Iris.xyz

DIYing has grown in popularity over the years. And, why not? There’s a high level of satisfaction to building, fixing, and installing projects on your own (and subsequently showing off the completed project on social media, of course). Not only does it save money, it creates pride and accomplishment.

However, when it comes to managing your financial life, the road to satisfaction and success might be more dangerous. When you handle your personal finances, there is no universal instruction manual from the manufacturer, and the journey to your desired outcome has far higher risks. The downside of botching the creation of a piece of furniture or shelf is significantly less than finding that you missed something important or worse yet, something critical—like collecting Social Security, properly accounting for health care costs, or proper estate planning and elder care planning.

Let’s begin with some basic assumptions. DIYer’s are bound by the same biases as non-DIYer’s—and those biases can easily lead you down the wrong path of decision-making. DIYer’s rely on their intellect and experience to make decisions. DIYer’s are confident that their capabilities are up to the task; these attributes are not necessarily bad, but they can be potentially devastating when it comes to personal finance.

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