DIY vs Advice: Understanding the True Value of Financial Planning

The debate between DIY investing and seeking financial advice is one that continues to spark conversation across the industry. For financial advisers, articulating the tangible value they bring can sometimes feel like an uphill battle—especially when prospective clients focus purely on fees rather than outcomes. This blog explores the differences between DIY investing and advice-led planning, the behavioural and practical nuances of each approach, and why understanding this debate is critical for both advisers and their clients.

What Do Financial Advisers Do When It Comes to Their Own Money?

A recent report from The Lang Cat offered a fascinating insight into how advisers themselves manage their finances:

• 14% of financial advisers said they have a financial adviser.

• 22% said they don’t need one.

• 57% do it themselves, following their firm’s internal processes.

• The remainder plan to use an adviser in future.

These figures raise an important question: if many advisers argue that advice offers a vital independent perspective and behavioural discipline, why do so few of them engage advice for themselves?

If we, as an industry, say that professional, impartial guidance improves outcomes, then surely we must ask ourselves whether we are applying those same principles to our own finances.

What Is DIY Investing?

At its core, DIY (do-it-yourself) investing is exactly what it sounds like—an individual taking full responsibility for their financial plan. This doesn’t just mean picking funds or shares. It means making complex decisions across multiple domains:

• Investment selection and risk profiling

• Tax planning and allowances

• Pension contribution strategies

• Estate and inheritance planning

• Cashflow forecasting and scenario modelling

• Emotional resilience and decision-making under pressure

The analogy often used is home maintenance. Some people will confidently do their own plumbing or electrics. Others—rightly—leave it to the experts. While you can learn to change a washer or build a flat-pack, complex tasks require time, skill, and experience. Modern investing is no different—particularly with increasing regulation, tax complexity, and market volatility.

Moreover, DIY investors risk falling into common behavioural traps: recency bias, loss aversion, overconfidence, and the tendency to sell at the worst time. Without a sounding board or clear plan, investors often make emotionally charged decisions that damage long-term returns.

Why Do People Choose DIY?

Most DIY investors cite two reasons:

1. Cost – avoiding advice fees and platform charges.

2. Control – believing they can match or beat adviser outcomes on their own.

While these motivations are understandable, they often overlook the hidden costs of poor decision-making, missed tax opportunities, or emotionally driven investing. The true cost of DIY is not just in pounds and pence—but in lost time, energy, and peace of mind.

What Does Advised Financial Planning Offer?

The financial advice industry has evolved significantly. No longer just about product sales or stock-picking, modern advice focuses on holistic financial planning—providing clients with a structured, values-based approach to managing wealth.

Key elements of advised planning include:

• An impartial view: helping clients detach from emotional decisions.

• Ongoing review and course correction: essential as life goals and tax rules change.

• Behavioural coaching: guiding clients through market ups and downs.

• Comprehensive planning: integrating pensions, ISAs, insurance, inheritance, and income strategies into a single, cohesive plan.

Studies consistently show that advised clients tend to build more wealth over time. The International Longevity Centre UK (ILC) found that people who took financial advice were on average £47,000 better off over ten years than those who didn’t.

Do Advisers Need Advisers?

This brings us back to a crucial question: do advisers practise what they preach? Personally, I have an adviser. I also know fund managers and analysts who choose to work with planners. Why? Because even the most financially literate among us are not immune to bias, blind spots, or procrastination. We all benefit from a structured process, clear accountability, and someone to challenge our assumptions.

So, when clients ask, “Why do I need advice?” perhaps a better question is, “Why do so many professionals choose to take advice themselves?”

Summary: It’s Not About Cost—It’s About Value

When weighing up DIY investing versus financial advice, the decision shouldn’t be based purely on fees. Instead, the focus should be on:

• Time – how much time do you realistically have to do this well?

• Confidence – do you have the technical and emotional discipline required?

• Value – are you optimising every area of your financial life?

For advisers, this is also a moment to reflect: are we demonstrating our own belief in the power of advice? Are we walking the walk?

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