The Real Cost of DIY Investing

Most of us don't service our own cars any more - it's too technical and we would rather do something else. So it seems odd that millions of people manage their own money. Although a few do it for fun, most see it as a way of saving money... but does it?
Managing money takes time, experience and specialist tools. Here are some of the tasks needed to create and monitor a diversified portfolio:
  • Identify the best funds in each sector
  • Build a portfolio with the right risk profile
  • Keep track of changes at the funds
  • Rebalance regularly

If you apply a sensible cost to your time you might find that it would be cheaper to use a professional. Use our widget to see a side by side comparison of selecting and monitoring a portfolio of funds yourself versus letting the EQ professionals do everything for you.

The minimum wage is currently £6.70/hour, and expected to rise to £9/hour by 2020.
The typical cost of tradesmen is £50-150/hour.

Compare the costs:

DIY Simply EQ Managed
Low Cost Best Ideas
Setup Costs {{ | currency:'£'}} {{ | currency:'£'}} {{ | currency:'£'}}
Ongoing Costs {{ | currency:'£'}} {{ | currency:'£'}} {{ | currency:'£'}}
Year 1 Costs {{ | currency:'£'}} {{ | currency:'£'}} {{ | currency:'£'}}
The year 1 costs of DIY will be {{ | currency:'£'}} {{}} expensive than letting the EQ professionals manage your money using the Low Cost Portfolio and {{ | currency:'£'}} {{}} expensive than the Simply EQ Best Ideas Portfolio.

Detailed assumptions

diy   Simply EQ investment service

Portfolio setup time costs

Hours Frequency Cost Hours Frequency Low Cost Best Ideas
{{cost.desc}}{{cost.subDesc}} {{}} {{xoseq.getTimeCost( | currency:'£'}}   {{cost.seq.hours}} {{cost.seq.freq}} {{xoseq.getTimeCost(cost.seq)| currency:'£'}} {{xoseq.getTimeCost(cost.seq)| currency:'£'}}
Total set up time cost   {{ | currency:'£'}}     {{ | currency:'£'}} {{ | currency:'£'}}

Ongoing time costs

Hours Frequency Cost Hours Frequency Low Cost Best Ideas
Update personal risk profile {{xoseq.ongoingCosts.risk.freq}} {{xoseq.getTimeCost(xoseq.ongoingCosts.risk) | currency:'£'}} 0.25 Annual {{ 0.25 * xoseq.inputs.personalTimeValue | currency:'£'}} {{ 0.25 * xoseq.inputs.personalTimeValue | currency:'£'}}
Review funds {{}} {{xoseq.getTimeCost( | currency:'£'}}  
Rebalance allocations, check risk profile and style bias {{xoseq.ongoingCosts.rebalance.freq}} {{ xoseq.getTimeCost(xoseq.ongoingCosts.rebalance) | currency:'£'}}  
Total ongoing time cost   {{ | currency:'£'}}   {{ | currency:'£'}} {{ | currency:'£'}}
Investment platform costs % £{{xoseq.inputs.platformCost * xoseq.inputs.portfolioSize * 0.01| number:2 }} EQ management fee {{ xoseq.getAnnualCost("low") | currency:'£'}} {{ xoseq.getAnnualCost("best") | currency:'£'}}
Total annual cost excluding fund charges   {{ | currency:'£'}}   {{ | currency:'£'}} {{ | currency:'£'}}