Some DIY investors may not use a financial advisor, but that doesn’t mean they think advice-driven investing is unwarranted.
The runner-up of the third-annual Horizon ETFs Biggest Winner Competition, Alex Macdonald, points out that although online trading may be attractive to some investors looking for instantly accessible, low-fee trades, it may not be the best choice for those focused on their long-term future.
“Online discount trading can be a little risky with people who have large portfolios,” says Macdonald. “Somebody looking for a definite return and a certain amount for retirement … this can’t be attained by going online and doing a couple of $6 or $7 trades.”
The 28-year-old, from Whitby, Ont., who works in auditing and financial reporting, currently runs his own portfolio, but recognizes the value of financial advice and wouldn’t shy away from seeking it down the line. “My portfolio might not be sizeable enough to use a financial planner … and I trust my own instincts,” says Macdonald. “But, people looking for short-term gains, but long-term stability; that remains the niche of the financial advisor.” (continued on Page 2.)