by Joyce Beckman

Created on: August 15, 2008   Last Updated: August 20, 2008

Making the Most of Your Cash Investments

I don't have the time or knowledge to micromanage my retirement fund. Do you? Some amateurs really have a knack for it, but most people not involved in the financial industry do not.

If you are not and you are a working stiff like most of us, your retirement fund would probably be better managed by a professional. Most IRAs are diversified now, thanks to the well-publicized tragic losses that have occurred with policies such as those in place at Enron.

There is a significant amount of education and training that goes into making a successful financial advisor, broker, or fund manager. Even in this time of economic downturn, my broker is quite successful financially, and this comes from him offering sound financial advice. He could not do my job, and I certainly cannot do his, nor would I want the headaches his job brings.

Most of us have no choice which firm handles our retirement fund. Some workers have the choice of micromanaging their own funds through the company broker. There are fees involved with every transaction one makes, so the return better be good to warrant micromanaging your funds. I admit my ignorance in this field.

Financial professionals will tailor an investment strategy based on your personality and your best interest. That is their job and expertise. In just a couple of years, my fund grew by 25%, much better than I could have done myself.

I admit to being nervous with the downward trend in the stock market. However, now is not the time to be taking money out of the stock market. For one thing, most of us would probably be worse off if we told our broker to sell stocks in companies whose portfolio is down. We must stay in the stock market to some extent to shore up the economy. Remember our history of bank runs in the early days of the depression and how that caused the collapse of the banking industry.

In summary, generally speaking, managing your own investments is a poor choice for the following reasons:

1. It would take too much time to thoroughly research the many funds available, let alone each and every company in the mutual fund group.
2. Professional brokers and fund managers can make wiser decisions in this field since their very livelihood depends upon their successes.
3. You probably have other things to do with your time.
4. It is not healthy to pour over the stock market daily since it is so volatile. Let your financial manager do that. Let your broker get the ulcer instead of you.

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