There are millions of “DIY” investors in the United States. Yet the risks of self-directed investing are significant. Amateur investors are known for emotional decision-making. They often sell in a panic during times of temporary volatility when they should hold on to the asset. Many DIY investors put themselves at risk by not thinking in the long-term. They’re concerned about making quick cash to pay for a vacation when they should be prioritizing saving for retirement. They lack due diligence when making investments which increases risk. Chasing trends is something most self-directed investors do that can often result in trouble.

Cryptocurrency is a common investment trend that has led to a fraud crisis in the U.S. of epic proportions. Crypto investment fraud is so rampant the FBI refers to it as “Pig Butchering”. Essentially the pig / investor buys fake crypto. They’re fattened up by the scammers who build trust with them and allow them to make small albeit fake withdrawals. After the investor increases their investment, the scammers steal their money and disappear.

Of course, there are many successful self-directed investors who understand the benefits of working with a professional investment management company. Nearly 40% of DIY investors team with an investment manager or firm to oversee certain assets. By doing this, they gain a partner in their financial future and a trusted guide who can help them avoid the common pitfalls of investing. For example, as a self-directed investor you may realize that gold holds its value in inflation, but do you know how to safely invest in gold? Precious metal frauds are as common as crypto scams.

Avoid the risks of self-directed investing. Contact Alloy Investment Management at 800-689-3935 to schedule a consultation with one of our experts. If you are on the fence about working with of an investment firm, we welcome you to come in and ask us anything you like. We want to get to know you and for you to get to know us.