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Sick of fees – should I DIY?

I’m sick of my stockbroker charging me a fee. I’m thinking about doing a total do-it-yourself approach to my super fund. I now have a self-managed super fund (SMSF). What do you think?

On stockbrokers, the fee can be OK if they give great investment tips and help you get big allocations of a new stock. I

f you use them for buying shares only and you direct them, then a discount broker makes sense.

I’d evaluate what work your broker does and ask: can I do this work myself? Or could someone do it cheaper and even better? If you want to do-it-yourself, I’d get a book or use the web to get the dos and don’ts.

You need to be a keen watcher of market developments if you regularly buy and sell your investments.

If you’re a 'set and forget' type, you buy fully franked shares, you buy good dividend payers and you’re in for the long-term, then a do-it-yourself strategy can pay off. But make sure you know and follow the tax office rules for your SMSF.

For advice you can trust book a complimentary first appointment with Switzer Financial Services today.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

 

Published on: Friday, February 05, 2010

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