When to DIY and When to Hire: The 5 Financial Tasks You Should Never Handle Alone
Navigating personal finances can feel like walking a tightrope; one wrong decision can send your planning off balance, while the right choices can set you up for long-term security. Whether you’re just starting on your financial journey or fine-tuning a robust portfolio, understanding which tasks to tackle on your own and which to entrust to professionals is critical. In this article, we break down the five key financial areas where hiring expert help might be the wisest course of action, from retirement income strategies and tax planning to the complexities of annuities and long-term care insurance plans. With a clear, step-by-step guide, you’ll learn when it makes sense to take a DIY approach for everyday budgeting and goal setting, and when the stakes are high enough to justify professional expertise. This balanced approach not only empowers you with the knowledge to manage your finances but also builds a strong foundation for a secure future.
1. Budgeting and Day-to-Day Spending – DIY
Best for:
- Tracking income and expenses
- Building an emergency fund
- Managing debt or short-term savings goals
Why it’s safe to DIY:
Basic budgeting is personal and straightforward. There are plenty of free tools and apps to help you monitor spending, set savings goals, and stay accountable. You don’t need a financial advisor to tell you how much you’re spending at the grocery store each week, but you do need discipline and consistency.
Bottom line: If you’re just getting started with financial planning, building a budget is the best place to start, and you can do it yourself.
2. Saving and Goal-Setting – DIY with Guidance
Best for:
- Short- to mid-term financial goals
- Emergency funds, travel, or buying a car
- Understanding basic savings vehicles
When to seek help:
If you’re juggling multiple competing goals like saving for a home, children’s education, and retirement simultaneously, it may be worth talking to a planner to help you prioritize and strategize. Similarly, if you’re unsure where to park your savings (high-yield accounts, CDs, brokerage accounts), professional input can be valuable.
Bottom line: DIY is fine for most simple goals, but if your financial picture is becoming more complex, consider professional advice.
3. Retirement Income Planning – Hire a Professional
Best for:
- Individuals within 10–15 years of retirement
- Those with multiple income sources (Social Security, 401(k), IRA, pensions)
- Anyone unsure how to turn savings into sustainable retirement income
Why it’s not a DIY project:
Retirement income planning is about more than just saving—it’s about building a strategy for how to draw down your assets in a tax-efficient, sustainable way that lasts for the rest of your life. A professional can help you build a distribution plan, minimize tax liability, and ensure you’re not at risk of outliving your money.
Bottom line: If you’re serious about retiring comfortably, this is not the time to wing it.
4. Tax Strategies – Hire a Professional
Best for:
- Self-employed individuals or business owners
- Earners with complex deductions like education credits or child tax credits
- Those with investment income, stock options, or multiple income streams
Why it’s not a DIY project:
Filing your taxes might be straightforward, but optimizing them year over year is far more complicated. A tax advisor or CPA can help you identify deductions, avoid costly errors, and develop a long-term tax strategy that complements your broader financial goals.
Bottom line: Tax planning—not just tax filing—is a critical part of financial planning that’s best handled by someone with expertise.
5. Annuities & Long-Term Care Insurance Plans – Hire a Professional
Best for:
- Individuals planning for healthcare costs in retirement
- Those seeking guaranteed income streams
- Anyone evaluating insurance-based financial products
Why it’s not a DIY project:
Annuities and long-term care insurance plans can offer important protections, but they come with complex terms, fees, and conditions. The differences between products can be significant, and the wrong choice can be expensive and difficult to unwind. A licensed financial advisor or insurance specialist can help you evaluate your options and determine what, if anything, makes sense for your situation.
Bottom line: These are high-stakes decisions with long-term implications. Get expert advice.
Be Strategic About When You Ask for Help
Doing it yourself is smart up to a point. For foundational tasks like budgeting and saving, a DIY approach builds confidence and control. But when the financial decisions become more complex, especially around retirement, taxes, or insurance, it’s not just okay to ask for help; it’s essential.
Professional financial planning isn’t just for the ultra-wealthy. It’s for anyone who wants to protect what they’ve built and make smart, informed decisions about the future.
