In Business Since 2001 We accept Paypal
Home Article Directory
More from Bill Platt
"Bill Platt for Book Authors" Youtube Channel
Training for Book Authors
Other Resources for Book Authors & Publishers
FictionPlots.com (350+ Plots & counting)
Please Support Our Advertisers

 
D9 Hosting


Why Manage Your Nest Egg Yourself?

Copyright (c) 2005-2020

Why would anyone manage their own stock portfolio? Why would you want to? You want a better net return. There are two parts to a better return, gross return and investing expense. Investing expense is simply the gap between gross return and net return.


Investing Expense

Investing expense, the expense of having a stock portfolio, includes commissions, management fees, annual fees, quarterly fees, inactivity fees, planning fees and slippage. The most tangible argument for self-directed portfolio management is lower investing expense. Doing it yourself predictably reduces future investing expense. Switching from a full price broker to an online broker reduces commission cost. Making your own buy/sell decisions eliminates management fees. The lower you drive investing expense the smaller the gap between gross return and net returns.

Slippage is the price change from decision to buy/sell to execution of a trade. Fast online discount brokers have less slippage than full service trade-by-phone brokers. Some slippage may come from brokers skimming or trading their own accounts. Most slippage comes as prices move in the time between decision and trade. Faster execution reduces slippage.

Few pros charge based on how much your account has grown. Fewer pay you if your account shrinks. Mutual fund managers may even increase their fee rate if their fund's asset base is falling and they can't cut their costs. Ask you account manager if you get a refund if the net asset value of your account falls.


Gross Return

Gross return is the increase in an investment. Net return is the bottom line, the amount your account has grown. Net return is gross return less investment expenses. Future gross return is less certain than future expense. Return goals are often stated relative to the markets. This takes market variance out of performance measures. Some strategies 'beat the market'. Some pro money managers 'beat the market.' Some self-directed investors 'beat the market.'

Pro money manager returns and self-directed returns overlap. Some pros beat some do-it-yourselfers, and vice-versa. There is little consistency from year to year. A pro with a stellar 2004, may not have a good 2005. On average about 1 in 5 pros beat the market. On average about 1 in 5 do-it-yourselfers beat the market. How is it easier to find the 1 in 5 pro who will beat the market than to find a stock that will beat the market?

If a switch is being assessed based on past performance, try to get details on the performance calculations. The best simple measure is to divide current net asset value by starting net asset value. Getting the annual return requires solving the compound interest rate formula. True annual performance numbers are always less than or equal to the average of annual returns.

Individuals can self manage portfolios to 'beat the professionals' and to 'beat the market'. However, lowering investing expense is more predictable than increasing gross return. Getting a better gross return is not the slam-dunk reducing investing expense is. Getting a better return requires effort to learn, to pick strategies, and to trade with discipline. Some investors reduce the effort by subscribing to a stock guru newsletter. It takes some time and effort to find a newsletter that will work for you.


Non-Financial Considerations

Some of the reasons for being a self-directed investor go beyond financial.


Anonymity

With self-directed portfolios no one has to know your financial status. No one needs to know enough to want to share your wins or laugh at your mistakes. In money matters, privacy is good.


Control

With self-directed portfolios no one stands between you and your money. The self-directed investor doesn't hesitate to pull out $100,000 for the down payment on a house, when he knows he isn't reducing his portfolio manager's income by the 2% annual management fees ($2,000).

The self-directed investor doesn't get sold on buying stories (stocks) when they don't fit his portfolio strategy. He/she doesn't get or act on hot tips. He takes pride in having a plan and working the plan.


Autonomy

The self-directed investor doesn't have to follow the crowd. This investor has a plan. His plan is not swayed by mutual fund managers or by other investors.


Fun

Self-directed investing has some of the features of gambling, with a smaller house advantage and less travel expense. But be careful; don't let the excitement of making big bets overwhelm you. Manage your portfolio.

Self-directed investors want to do it themselves to reduce expense, increase net return, protect anonymity, keep control, enhance autonomy, and have fun.


About The Author: Shop Amazon - Top Gift Ideas
Lyle Wilkinson, investor, trader, author, MBA Helps individuals learn to self direct their stock portfolios. Book, e-book, PowerPoint "DIY Portfolio Management" http://www.diyportfoliomanagement.com mailto:joe@diyportfoliomanagement.com

VOTE ON THIS ARTICLE
Needs Work >> 0 - 1 - 2 - 3 - 4 - 5 << Excellent Article

Tell our authors what you think about their article.



Top-Level Category: Articles

10 Most Recent Articles Written by Lyle Wilkinson

How I Built a Kayak
Written by: Lyle Wilkinson | Distributed: 2006-06-06 | Word Count: 1178 | Page Views: 5934 | Votes: 17 | Rating: 1.35
Nowadays, most kayaks come from big machines, crews, and an assembly line. However, the roots of kayak building are DIY (do it yourself). With modern materials the options available to do it yourself builders have expanded. You can build "skin on frame," wood strip, plywood, fiberglass, or plastic. You can build a cedar strip work of art, you're afraid to get wet, or a kayak so ugly you don't have to worry about theft.

What's Working Now?
Written by: Lyle Wilkinson | Distributed: 2006-04-18 | Word Count: 0 | Page Views: 1199 | Votes: 2 | Rating: 0.00
Financial markets are not static. What works now might not work tomorrow. Sometimes what worked in the past will start to work again.

Retirement Planning Wars
Written by: Lyle Wilkinson | Distributed: 2005-06-01 | Word Count: 0 | Page Views: 1364 | Votes: 2 | Rating: 0.50
Through our working lifetime, saving forces battle the ‘live life’ forces. In our family sometimes saving won and sometimes spending won. As retirement approached we had equity in our home, a small nest egg, and no consumer debt.

Top 3 Wealth Building Mistakes - Do You Make Any of Them?
Written by: Lyle Wilkinson | Distributed: 2005-05-20 | Word Count: 0 | Page Views: 2209 | Votes: 2 | Rating: 0.50
Do you procrastinate? Investing mistake #1 is waiting too long to begin. The wealth building formula needs time to work.

Exchange Traded Funds Are Good for Investors
Written by: Lyle Wilkinson | Distributed: 2005-04-28 | Word Count: 0 | Page Views: 1142 | Votes: 2 | Rating: 0.00
Exchange Traded Funds (ETFs) are growing. Investors are choosing low annual expense and market return over high annual expense and promised performance.

All of Author's Articles on this site:

Most Recent "" Articles

Ann Arbor, MI Offers A Lot Of Year-Around Family Fun
Written by: Jeb Maxwell | Distributed: 2010-01-20 | Word Count: 595 | Page Views: 3558 | Votes: 8 | Rating: 1.25
Ann Arbor, Michigan is the home of the University of Michigan, a leading institution of higher education. Ann Arbor is a wonderful place to visit. The University is co-mingled with the city and greatly expands the cultural places and events available in the area.

Flowers Are The Perfect Gift For Father's Day
Written by: Wesley Berry, AAF | Distributed: 2008-02-20 | Word Count: 486 | Page Views: 4985 | Votes: 11 | Rating: 2.09
Dads everywhere have Sonora Smart Dodd to thank for getting Father's Day started. In 1909, Sonora sat in a church in Spokane, Washington listening to a sermon expounding on the virtues of motherhood. But, as she sat there, she thought about how special her own father was since it was he who raised her after the death of her mother.

Finding the Adventure in Travel Again
Written by: Helen Bergstein | Distributed: 2006-05-11 | Word Count: 718 | Page Views: 3665 | Votes: 14 | Rating: 2.64
If you want to experience adventure at every level of your next trip, you need to go beyond the usual resorts and places to stay. If you're like most travelers, personal safety remains a priority, especially in today's world. A growing number of savvy travelers have found the perfect balance between adventure and comfort.

7 Tips to Hiring a Good DJ for your Party
Written by: Kamau Austin | Distributed: 2006-05-11 | Word Count: 563 | Page Views: 4595 | Votes: 11 | Rating: 1.36
If you want to have a party that everyone will be talking about for days and years later, hire a good DJ to run your music and light show. Hiring a DJ can actually be fun. Just follow these simple tips, and you are sure to have a fabulous DJ for your party.

Building your Credit to get a Mortgage
Written by: Kamau Austin | Distributed: 2006-05-11 | Word Count: 840 | Page Views: 4626 | Votes: 11 | Rating: 2.09
You are thinking about purchasing real estate. However, you are not sure if your credit is good enough to get a mortgage. There are things that you can do to build your credit so that it is worthy of any mortgage that may interest you.

1569 Unique Ways To Get A Free Lunch
Written by: Steve Robichaud | Distributed: 2006-05-07 | Word Count: 0 | Page Views: 2750 | Votes: 3 | Rating: 0.33
Everywhere you turn - T.V., Radio, magazines, or the Internet, someone is talking about government grants. What's the real story? Does the government give away real money, to ordinary people, to use for whatever they want? Let's take a closer look:

Don't Wait to Start Your Marketing Strategy
Written by: Jo Fulkerson | Distributed: 2006-05-07 | Word Count: 0 | Page Views: 3063 | Votes: 3 | Rating: 0.33
Your novel is finished, you’ve had it edited by a professional Editor, and you’ve done the rewrites. What? You haven’t had an editor edit your work yet? This is a must. There are many editors advertising in Writer’s Digest.

NEVER Reply to an eGroup Post!
Written by: BIG Mike McDaniel | Distributed: 2006-05-07 | Word Count: 0 | Page Views: 4257 | Votes: 3 | Rating: 0.33
eGroups are collections of people subscribed to a common (discussion list) address. When one member sends an eMail message to the eGroup address, it is automatically sent to everyone else on the list. As subscribers open and read their eMail, discussion threads take shape with additional posts and replies. The attraction of eGroups is the ability to join in at your convenience as opposed to the confinement of live chat rooms.

Reasons behind Shoulder Pain
Written by: Jessica Horowitz | Distributed: 2006-05-07 | Word Count: 0 | Page Views: 4131 | Votes: 3 | Rating: 0.33
Pain between the shoulder blades, or any pain for that matter, is your body's way of notifying you that something is amiss. You should never ignore it and hope it will *go away by itself*. There are a multitude of possible causes of pain between the shoulder blades. We'll discuss common ones in this article and start with the most serious conditions first:

Effective Managers Need To Coach
Written by: Wendy Hearn | Distributed: 2006-05-07 | Word Count: 0 | Page Views: 3661 | Votes: 4 | Rating: 0.75
Bearing in mind the fast pace of business today and the need to stay competitive, it's essential that managers should be effective. They need to be especially effective with their people and this requires learning to coach. For most managers, coaching has been added to their role anyway, but the majority haven't received any training in coaching skills.

Most Viewed "" Articles

TAKING RESPONSIBILITY - LIFE'S BIGGEST QUESTION
Written by: Richard Sparky Bryan | Distributed: 2006-05-07 | Word Count: 0 | Page Views: 13048 | Votes: 3 | Rating: 0.33
When did Americans stop taking responsibility for their own actions? My friend agreed that the slide began in the late 1960's with the growth of the drug culture. But he was quick to emphasize that although the sixties began the slide, the real sharp slope did not arrive until the 1990's. Along about 1993, the slide began to sharpen. It was not until early 1998 that the slope became a steep cliff.

High Thread Count Bed Sheets. How Many Threads Does A Bed Sheet Need?
Written by: Liz Beresford | Distributed: 2004-09-14 | Word Count: 0 | Page Views: 5653 | Votes: 3 | Rating: 0.33
High thread count bed sheets, often called percale, are much advertised, but what exactly does 'high thread' count mean? You know that it means quality and comfort, but do you know why? It used to be considered good to have thread count of 180-200 but thread counts of up to 1000 are advertised these days.. So what is going on? Does high thread count always mean better quality? Is there an optimum thread count, and if so what is it?

Muzzling the Motor Mouths: Silence Workplace Windbags
Written by: Bill Lampton Ph.D. | Distributed: 2005-12-01 | Word Count: 0 | Page Views: 5479 | Votes: 4 | Rating: 0.50
During my twenty-three years in management, I dealt with blabbermouths frequently, so for the last ten years I have advised clients on how to silence the workplace windbags. Here are my suggestions for muzzling the motor mouths:

Better Than Botox is there a Safer Substitute?
Written by: Kamau Austin | Distributed: 2005-09-08 | Word Count: 0 | Page Views: 5385 | Votes: 3 | Rating: 0.33
Women since time immemorial have always looked for ways to enhance and prolong their beauty. This of course becomes more difficult as they age.

Transform Your Work Area into a Homey Environment
Written by: Ted Roberson | Distributed: 2006-02-24 | Word Count: 0 | Page Views: 5250 | Votes: 4 | Rating: 1.25
Nothing enables one to think and work better than a comfortable working environment. Especially if you have a sedentary job, you've got to have little knick knacks around that will enliven your spirits or which you can look at for inspiration or just to zone out in relaxation.

12 Ways to Promote Your Business And Website for Free
Written by: Ivana Katz | Distributed: 2005-03-29 | Word Count: 0 | Page Views: 5115 | Votes: 3 | Rating: 0.33
You are very excited!! You have finally created your own website!! But the trouble is customers aren*t knocking on your website door. Why? The most probable answer is...

Flowers Are The Perfect Gift For Father's Day
Written by: Wesley Berry, AAF | Distributed: 2008-02-20 | Word Count: 486 | Page Views: 4985 | Votes: 11 | Rating: 2.09
Dads everywhere have Sonora Smart Dodd to thank for getting Father's Day started. In 1909, Sonora sat in a church in Spokane, Washington listening to a sermon expounding on the virtues of motherhood. But, as she sat there, she thought about how special her own father was since it was he who raised her after the death of her mother.

Building your Credit to get a Mortgage
Written by: Kamau Austin | Distributed: 2006-05-11 | Word Count: 840 | Page Views: 4626 | Votes: 11 | Rating: 2.09
You are thinking about purchasing real estate. However, you are not sure if your credit is good enough to get a mortgage. There are things that you can do to build your credit so that it is worthy of any mortgage that may interest you.

7 Tips to Hiring a Good DJ for your Party
Written by: Kamau Austin | Distributed: 2006-05-11 | Word Count: 563 | Page Views: 4595 | Votes: 11 | Rating: 1.36
If you want to have a party that everyone will be talking about for days and years later, hire a good DJ to run your music and light show. Hiring a DJ can actually be fun. Just follow these simple tips, and you are sure to have a fabulous DJ for your party.

Sell Yourself, Not Your Products or Services
Written by: Bill Platt | Distributed: 2004-05-03 | Word Count: 0 | Page Views: 4336 | Votes: 2 | Rating: 0.50
Sell yourself, not your products or services. The point we need to make is that your products and services will change over time as your business adapts to the realities of the marketplace.

Highest Ranked "" Articles

Finding the Adventure in Travel Again
Written by: Helen Bergstein | Distributed: 2006-05-11 | Word Count: 718 | Page Views: 3665 | Votes: 14 | Rating: 2.64
If you want to experience adventure at every level of your next trip, you need to go beyond the usual resorts and places to stay. If you're like most travelers, personal safety remains a priority, especially in today's world. A growing number of savvy travelers have found the perfect balance between adventure and comfort.

Building your Credit to get a Mortgage
Written by: Kamau Austin | Distributed: 2006-05-11 | Word Count: 840 | Page Views: 4626 | Votes: 11 | Rating: 2.09
You are thinking about purchasing real estate. However, you are not sure if your credit is good enough to get a mortgage. There are things that you can do to build your credit so that it is worthy of any mortgage that may interest you.

Flowers Are The Perfect Gift For Father's Day
Written by: Wesley Berry, AAF | Distributed: 2008-02-20 | Word Count: 486 | Page Views: 4985 | Votes: 11 | Rating: 2.09
Dads everywhere have Sonora Smart Dodd to thank for getting Father's Day started. In 1909, Sonora sat in a church in Spokane, Washington listening to a sermon expounding on the virtues of motherhood. But, as she sat there, she thought about how special her own father was since it was he who raised her after the death of her mother.

7 Tips to Hiring a Good DJ for your Party
Written by: Kamau Austin | Distributed: 2006-05-11 | Word Count: 563 | Page Views: 4595 | Votes: 11 | Rating: 1.36
If you want to have a party that everyone will be talking about for days and years later, hire a good DJ to run your music and light show. Hiring a DJ can actually be fun. Just follow these simple tips, and you are sure to have a fabulous DJ for your party.

Ann Arbor, MI Offers A Lot Of Year-Around Family Fun
Written by: Jeb Maxwell | Distributed: 2010-01-20 | Word Count: 595 | Page Views: 3558 | Votes: 8 | Rating: 1.25
Ann Arbor, Michigan is the home of the University of Michigan, a leading institution of higher education. Ann Arbor is a wonderful place to visit. The University is co-mingled with the city and greatly expands the cultural places and events available in the area.

How to Decorate Your Home on EBay
Written by: Pamela Cole Harris | Distributed: 2005-09-14 | Word Count: 0 | Page Views: 1395 | Votes: 5 | Rating: 1.20
If you are on a budget (and who isn’t?), a wonderful place for find home decorating accessories is auction sites like eBay. But before you go a’baying, here is some advice...

The "Proprietary Blend" Nutritional Supplement
Written by: Will Brink | Distributed: 2006-02-10 | Word Count: 0 | Page Views: 2650 | Votes: 5 | Rating: 0.60
In a nut shell, I went onto cover each of these common marketing terms that are used to sell supplements to unwitting consumers and explained each in detail as to what I view as their common misuse within the market place.

Brink's Unified Theory of Nutrition
Written by: Will Brink | Distributed: 2006-02-24 | Word Count: 0 | Page Views: 1625 | Votes: 5 | Rating: 0.60
Regardless of the topic, a unified theory, seeks to explain seemingly incompatible aspects of various theories. In this article I attempt to unify seemingly incompatible or opposing views regarding nutrition, namely, what is probably the longest running debate in the nutritional sciences: calories vs. macro nutrients.

7 Steps to Successful Telemarketing
Written by: Kamau Austin | Distributed: 2006-05-03 | Word Count: 0 | Page Views: 2282 | Votes: 5 | Rating: 0.40
Telemarketing is not as easy as it looks. Telemarketing involves talking on the phone to someone you do not know and trying to convince them to buy a product, use a service, or sign up for a special offer. Many times, telemarketers fail because they are not doing the job properly.

Offer More Payment Options than your Competition
Written by: Bill Platt | Distributed: 2004-05-03 | Word Count: 0 | Page Views: 2652 | Votes: 5 | Rating: 0.40
In order to be successful online, you must provide your customers many quick and easy ways to pay for your goods and services. It is not enough to ask folks to send a money order or check to your house or place of business. You must do more.











Download an eBook today
 
Directory Navigation
Locate By Category:

ALL Categories
Arts & Crafts
Arts & Entertainment
Automotive
Business - Offline
Business - Online
Career
Computers
Education
Family
Finance
Food & Drink
Health & Wellness
Home & Garden
Humor
Internet
Nature & Pets
Real Estate
Religion
Self Improvement
Shopping
Society
Sports & Recreation
Technology
Travel & Leisure
Uncategorized
World Events
Writing & Speaking

Change Number of Results:
50 - 100 - 200 - 500
Article Reprint Rights
Creative Commons License

This work is
licensed under a
Creative Commons
License


You are not required to show the creative commons license notice when you reprint this work.
Article Statistics
Word Count: 0

Total Views: 1263

Article Rating: 0.50 of 5
Votes Cast: 2

More Articles By Author:



Last Distribution Date:
2005-04-05 17:23:12

Internal ID: #1019





All Articles are Copyright © 2001-2020 of the Defined Authors.

All other material and images on this site are:
Copyright © 2001-2020, ThePhantomWriters.com