The cost of being stubborn is high (in dollars & stress):
Bottom Line: Yesterday I brought you the story of the emotional mistakes the average investor makes. In that example the average annual return of a self-advised investor was a paltry 2.3% compared to 7.2% by those with a balanced financial plan (over the past twenty years). The cost per $100,000 invested over twenty years was nearly $300,000! On back of that information I sought out additional research on the topic.
For many the best way to not make emotional mistakes with money is to hire a professional to assist. Gallup found that in every category those who use an adviser fare far better (emotionally and otherwise).
Strongly agree their investment plan is on the right track
61% - Professional advised
41% - Self advised
Give themselves an A or B grade on knowledge of stock investing
44% - Professional advised
Strongly agree they feel prepared for a market correction
39% - Professional advised
24% - Self advised
Have a written financial plan to guide their financial decision-making
68% - Professional advised
28% - Self advised
Have a diversified investment portfolio
86% - Professional advised
63% - Self advised
Rebalance their investment portfolio at least once a year
54% - Professional advised
33% - Self advised
It's especially instructive that only 32% of self-guided investors say they have good knowledge of stocks. It's not possible to be a highly effective investor without effective knowledge of the best performing investment class. That lack of knowledge leads to two common negative outcomes for investors. Making emotional mistakes with the timing of buying and selling stocks or avoiding them altogether. Ignorance can be fixed with more information or a good adviser. Stubbornness is likely to only lead to more stress and less money.