PROs & CONs to DIY Investing in Retirement
- Michael Isbister CFP
- Jun 24
- 5 min read
Hello everyone, and welcome to the Retiring Canada Podcast.
In today’s episode, we’re diving into the pros and cons of DIY investing in retirement.
We’ll cover:
Who the typical DIY retirement investor is
The three main pain points they face
Four key pros and four major cons of going it alone
Ten things you should expect if you choose to work with a financial advisor
And how your personal biases can impact decision-making
Plus, I’ll share a few action items at the end of the episode to help you move forward with confidence.
Over the last few months, I’ve had many great conversations with listeners—some curious about our services, others just looking to put their retirement plan to the test through our Fundamental Retirement Plan.
These conversations often fall into two camps:
Individuals and families wanting a second opinion because they feel their current advisor isn’t meeting expectations.
DIY investors—some of whom are considering handing over the reins as they near retirement to a full-service wealth management team that offers far more than just investment management.
Today’s episode is for that second group—the DIYers who tune in every two weeks for guidance on how to create sustainable retirement income.
Now, here’s my disclaimer: I’m biased. I earn a living managing clients’ investments and delivering high-level financial planning. That said, I do understand the mindset of a DIY investor. At face value, advisors might seem unnecessary—especially if you’ve had a poor experience or assume all we do is manage portfolios.
But as I’ve said before on this podcast, value is in the eye of the beholder. And today, I want to be as open and honest as I can about what you gain—and risk—when you choose to go it alone.
Who Is the Typical DIY Investor Nearing Retirement?
Let’s talk about you—the typical DIY investor over 50.
You’ve likely been investing on your own for 15+ years. You’ve had business or personal success and built a net worth between $5–$10 million, with $2–$5 million in investable assets. You’re methodical, organized, and like to stay in control of your household finances.
Your TFSAs and RRSPs are maxed out, and you’ve built a healthy non-registered account—often north of $1 million. If you’re a business owner, some of your wealth may be in a holding company. You’re comfortable using a discount brokerage, and you check your portfolio regularly. You have a solid relationship with your accountant and are constantly absorbing financial content—BNN, blogs, podcasts like this one, even tee-box chats.
You’re a moderate risk taker focused on capital preservation with some growth. You’re slowly reducing equity exposure, shifting toward dividend-paying and income-generating investments.
But despite all of this, you’re starting to feel some unease.
There are three major pain points I often hear:
Decumulation strategy – How do you draw income tax-efficiently in retirement? How do you build your retirement paycheck? How do you reduce tax over your lifetime and to your estate?
Government benefits – When should you and/or your spouse start CPP and OAS? Will you get full benefits or face claw-backs?
Estate and legacy planning – You’re unsure of what you’re missing when it comes to protecting your estate and minimizing taxes for the next generation.
Sound like someone you know?
The Pros of DIY Investing
Let’s dive into the upsides of going it alone:
1. Lower Costs
No advisory fees mean more return in your pocket. Advisory fees vary—often between 0.3% to 1% depending on your assets. On a $5 million portfolio, that could be $30,000/year. But before you move on, ask yourself: What is my time worth?
2. Complete Autonomy
You decide when, where, and how to invest. You like the control, and you trust your process.
3. No Conflicts of Interest
You avoid product-pushers. (Although, if you ever do work with an advisor, look for fee-based or fee-only planners to avoid commission conflicts.)
4. Educational Growth
You enjoy learning. You’re intellectually curious and love staying sharp. I get it—I feel the same way.
The Cons of DIY Investing
Now let’s talk about the potential downsides:
1. Complexity
As your wealth grows, your financial life becomes more complex—tax strategies, trust planning, cross-border issues, and more. And I didn’t even mention investments yet.
2. Time Commitment
Managing everything yourself takes time. Researching, updating strategies, staying current—it adds up. And that’s time you could spend with family, on hobbies, or just enjoying retirement.
3. Spousal Risk
In many couples, one partner handles the finances. If something happens to you, will your spouse know what to do? A trusted advisor can become a financial lifeline for the surviving spouse.
4. Emotional Decisions
When markets get bumpy or you start drawing income, emotions kick in. I've helped clients avoid costly mistakes simply by being the calm voice in the storm.
That’s a value hard to quantify, but one you’ll appreciate when markets turn.
The Advisor Advantage: 10 Things You Should Expect
If you do decide to work with a team like ours, here’s what you should get in return for the fees:
Holistic Financial Planning
Advanced Tax Efficiency
Estate & Legacy Planning
Risk Management & Asset Protection
Business Owner & Liquidity Event Guidance
Personalized Service & Time Savings
Behavioral Coaching & Discipline
Access to Institutional Investment Opportunities
Coordination with Your Tax & Legal Professionals
Trust & Peace of Mind
You’re not just paying for portfolio management—you’re paying for strategic thinking, personal attention, and clarity.
If You’re Still Not Sure...
If you’re a numbers person, I recommend checking out Vanguard’s research on advisor value (linked in the show notes).
One case study I love is on page 18—it highlights how the right advice encouraged a couple to worry less and enjoy their retirement more. That’s real value.
Final Thoughts & Action Items
If you’ve made it this far, thank you. I hope I didn’t sound preachy—it’s not my goal. I know I have my biases, but I’ve done my best to keep it honest.
Before we go, here are three action items for you DIYers:
Challenge your assumptions.
Ask yourself: If I passed away tomorrow, would my spouse know what to do?
Consider a fee-only planner
If you want advice without giving up control, fee-only planners may be a great fit.
Check your own bias.
I’ve worked to set mine aside—can you do the same? DIY has costs too: missed opportunities, lack of diversification, time, and stress. Don’t ignore that.
That’s it for today’s episode!
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All comments are of a general nature and should not be relied upon as individual advice. The views and opinions expressed in this commentary may not necessarily reflect those of Harbourfront Wealth Management. While every attempt is made to ensure accuracy, facts and figures are not guaranteed, the content is not intended to be a substitute for professional investing or tax advice. Please seek advice from your accountant regarding anything raised in the content of the podcast regarding your Individual tax situation. Always seek the advice of your financial advisor or other qualified financial service provider with any questions you may have regarding your investment planning.