Self-Directed Success

self-directed investments

You can take control of your financial matters, and in the process beat the massive financial industry that does not deliver the results you need

Okay, let’s imagine you feel you don’t know much at all about financial matters, especially when it comes to self-directed investments and knowing what type of financial instruments you should utilize.

What if I told you that it is possible for you to take control of your own finances, and as a result outperform any financial advisor or money manager when it comes to your investment accounts? What if I further went on to say it does not even matter what level of knowledge or experience you might currently have? Does this seem out of the realm of possibilities to you? It doesn’t to us. In fact we know it isn’t.

 

Self-Directed Investment Accounts Put You in Charge

Most investors, both novice and experienced, believe it is necessary for them to rely on financial advisors and money managers to select the investment vehicles they will be involved with in trying to drive themselves to success. The problem with that is most fund managers can’t even beat the market!  What about the ones that do?  Studies show that they rarely do so consistently, indicating a virtual certainty you won’t find and predict them year after year.

In allowing advisors to pick where to allocate their money, investors never fully understand much about how their investments and finances really work—how they move in certain markets, the underlying financial numbers, the trends, the trading ranges, etc. And they usually fail to understand why they are even invested in a particular asset to begin with. If they don’t understand why they are invested, how are they going to know when it’s time to get out and move their money elsewhere—somewhere there is a better potential for great returns?

Instead, they are left at the mercy of somebody else to pick where their money goes each year—usually someone who has a very large incentive to keep those assets under their management, or in high-commissioned places where the advisors will yield the biggest paycheck. This is precisely why so many investors end up riding their investments back down—giving most, if not all, of their growth away during a financial crisis or meltdown—either market-wide, industry or company specific (remember the 2000 market, or 2008?) It just isn’t profitable for those managing others money to have them invest elsewhere, so they’ll let them take the massive hit. And investors are paying more on top of that too—somewhere around 2% of their entire account size every single year in the form of management fees and commissions (which add up to monster amounts in your lifetime).

 

Take Control

If you were to take the self-directed approach, you could save the 2% every year in fees, learn how to be self-sufficient with your finances ongoing, and, hopefully, earn an even greater overall return than you previously thought. That’s the approach our clients take.

self-directed astonishmentAll it requires is being directed to the information you need in order to be successful, to learn from others who have done it before, and just to begin doing it, taking massive and consistent action toward your goals and dreams. The most important thing for success is to show up, and do what it takes. Imagine how much you could accomplish when the person who cares most about the results is the one in charge. You will astonish yourself as to what is possible once you begin to apply this wealth of knowledge and practical experience directed toward whatever it is you want to accomplish.

We believe you need to be shown—to be exposed to the options that are available to you in the financial world, and to be given the chance and ability to choose for yourself. We don’t believe others should tell you where to invest or how to handle your money, and, in the process, build a dependency on that continued relationship.

It is our strong conviction that you become financially independent—meaning you independently and confidently choose your own investments, your own allocations, and your own financial decisions—without the need of someone else making those calls for you. After all, you know without a doubt that you have your best interest in mind—without the thought of commissions and percentages clouding your judgment.

You should get involved only in investments you are comfortable with, ones that you fully understand and ones you believe in. This is not done with blind faith, it’s done after you have learned about the risks versus the rewards, how different investments fit in with your overall plans and goals, and only when you are ready to embrace these types of investments. Only then can you begin to realize the type of investment returns and financial tranquility we all strive for.

Don’t ever let anyone convince you that you can’t take care of your own financial picture. You can—and we are here to help you do that.

Be Happy. Make Money. Retire Well.

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Randy Tudor is the VP of Investment Research for Margin of Safety Investing, LLC. He has over 35 years of experience in financial services, real estate, taxes, and accounting. He currently resides in Phoenix, Arizona, where he heads up the investment research and analysis team by focusing on companies with strong fundamentals, a durable, competitive advantage, honest and talented management, and which can be acquired for a margin of safety price.

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