Why
Control and Autonomy
Choosing self-directed investing, helps fill the desire to control one’s financial future. Many feel somewhat uncomfortable with the idea of a portfolio manager or fiduciary having significant control over their financial assets. This discomfort stems from the perception that external managers may not fully align with their personal financial goals and risk tolerance.
Empirical Decision-Making
Managing investments using empirical data to aid in decision-making has benefits. Using independent analysis, research, and data-driven decision-making to construct and manage investment portfolios can create a risk and performance profile that is more appealing.
Arbitrary Risk and Performance
Many of the traditional investment approaches just repeat overly simplistic approaches that have had somewhat arbitrary risk and performance. The recent fall in performance in bonds left many questioning such approaches. A more systematic approach to evaluating and managing investment risk and performance can be comforting.