While anyone can manage their own assets, that doesn’t necessarily mean you should in every situation. Most Americans turn to friends, family, or trusted financial advisors when seeking financial advice.

In this week’s Money Wisdom Question Series, Heath Grossman, CFP® shares four important factors to consider when deciding between working with an advisor and planning on your own.

1. Your Financial Knowledge and Experience

Are you familiar with different types of investments? Do you feel confident creating a diversified portfolio? Can you balance your asset allocation? If not, that’s okay, because financial advisors have the experience and insight to help with exactly that.

When managing investments, advisors do far more than simply pick funds or stocks. Professional financial management also involves setting up withdrawals, managing tax withholding, maintaining beneficiary designations, and handling other administrative tasks.

2. Your Ability to Manage Your Emotions

When markets are rising, it’s easier for most people to stay invested. But when the market drops, especially during a sharp downturn, your emotions can often get the better of you.

Historically, investors have lost more wealth due to poor timing and emotional reactions than from market declines themselves. An advisor, on the other hand, can provide a calm, objective perspective to help keep you on track.

3. Your Time Availability and Dedication

Even if you have the knowledge and interest to manage your finances on your own, do you have the time or dedication? Many retirees say they would rather spend their retirement years enjoying life instead of closely monitoring and managing their investments.

4. Your Confidence and Peace of Mind

Your nest egg represents 35 to 40 years of hard work, discipline, and sacrifice. Are you confident enough to manage it in a way that honors the effort it took to build?

Remember, the investing mistakes you make at age 30 are often small bumps in the road that you can recover from over time. But mistakes later in life can have much larger consequences and may be harder to correct.

An advisor can help instill confidence in the financial decision-making process and offer peace of mind during major life changes.