Solo investing or Expert guidance?

27 Aug 2025

Should retirees attempt do-it-yourself investing, or stick to managed funds and safer options?

Thinking of going the solo (DIY) investment route? You wouldn’t be the only one. Lower fees and the hope of outperforming the average financial adviser can lure people into giving it a try.

Fortunately, there are now plenty of tools and information available to help people along the way. But it takes more than access to an online investing account and a wealth of information to make a success of hands-on investing. So how do you know if you’re cut out for doing some solo investing?

How’s your financial literacy?

Maybe you feel confident investing in cash, property or shares. But what about other forms of investment?

If you’re going to launch into solo investing, knowing the basics can really pay off.

What’s your strategy?

One of the mistakes solo investors can make is following the latest trend. That can lead to a portfolio that is a hotchpotch of investments rather than one driven by an underlying strategy. A strategy should also include thinking about mitigating against various risks associated with investing, including the risk of having all your eggs in one basket. Successful investing relies on having a diversified portfolio. Then, if some of your investments are heading south, your total returns are still protected by the investments that are performing well.

How full is your diary?

If your perfect retirement includes plans to travel frequently; work on your golf handicap; and spend time with the grandchildren, you may not have the hours in the day needed to keep on top of a solo portfolio.

To stay ahead of market trends and movements, you’ll benefit from following the news closely; being politically aware, across economic data; and up-to-speed with foreign events and how they may impact markets. 

How disciplined are you?

Making good returns from investing can require a cast-iron will. It’s important to ask yourself some tough questions before entering the solo fray. Do you panic and tend to bail out of your investments and convert to cash when markets turn volatile? Does the thought of buying a stock when the price is dropping make your stomach churn? If your emotions are likely to get in the way of taking decisive, disciplined action on the investment front, the result can be a portfolio delivering lacklustre returns.

How will your solo investments support your overall financial goals?

A financial plan isn’t just about putting money into a bunch of investments. When you go to see a financial adviser, they’ll ask you many questions about your financial needs and goals. A financial planner will then consider the best structure for holding your assets; the tax-efficiency of various options; and your need for income or capital gain. Research suggests retirees say they sought financial advice either from a financial adviser, full-service broker or a lawyer: because it was tailored to their personal circumstances; because it helps them diversify their portfolios and minimise risk; and because it helps them navigate the administration and tax requirements of investing.

The information provided in this publication is of a general nature only and should not be considered as a recommendation or endorsement by PSPL of any product, service or advice contained in this publication. Please consider your personal circumstances and seek professional advice, if necessary.