Do It Yourself

Many people try to save a few dollars by attempting to do things themselves. Be it fixing the toilet, renovating, or handling their personal financial affairs, many people find after they start a project themselves, they end up having to go to a professional in the end.

I was just talking to a client last Thursday about a "minor" renovation project she was frustrated with. Both she and her husband took a week off work to replace some worn hallway carpet with tile. After working on it since the previous Sunday - they found themselves scurrying around Wednesday night calling tile contractors to pass the job off. They might end up saving by having done some of the prep work themselves, but she said that it was definitely not worth the frustrations or the cost of wasting precious holiday time.

A couple of weeks ago I had an appointment with a new client. One of the areas I always discuss with clients is their estate documents (which include Wills, Powers of Attorney and Living Wills/Personal Care Directives). I was advised they both had Wills, which the wife informed me she had completed herself. Having once been a secretary in a law office, she felt she had experience in this area. After discussing the matter a little further, they might end up going to a professional to have their Wills redone. They have a blended family and no provisions were made for dealing fairly with bequests to children of prior marriages.

Last year I had asked a lawyer what he thought about the huge advertising campaign on "do-it-yourself legal will kits". He said he was delighted. There is really not much money in it for a professional to draw up a Will. However, there is the potential for a great deal of money to be made fighting or defending an improperly completed Will.

Studies show that people who use professional financial advisors generally have better investment portfolio returns than people who attempt to do it themselves. The reasons given include that when you do-it-yourself you are emotionally attached to the decisions being made. When emotions get in the way, the end result can be disastrous.

Be it fixing the toilet, renovating, or handling your personal financial affairs, sometimes attempting to save a few dollars is being penny-wise and pound-foolish.

Carol Tichelman, CFP, is with Partners in Planning Financial Services in Chilliwack and can be contacted at 604 792 8111.