Investment Planning: The Hidden Costs of Doing It Yourself
DIY investing may seem simple, but hidden costs can add up. Learn how investor behavior, taxes, time and planning gaps can affect long-term returns.
Author: Brandon Jordan, CFP®, CHFC®, CEPA®, CVGA®, CLU®, MSA, EA | CEO of Impact Advisors Group
January is full of optimism. Goals are established. Plans are created. Growth initiatives are launched. Business owners often begin the year energized and focused on what they want to accomplish.
Then reality happens.
Customers need attention. Employees require leadership. Unexpected challenges emerge. Opportunities arise that weren’t part of the original plan. Before long, six months have passed and many business owners find themselves working hard without taking the time to evaluate whether they’re actually moving in the direction they intended.
That’s why the middle of the year presents a valuable opportunity. Not to start over or to abandon the plan, but to pause long enough to assess what is working, what isn’t, and what adjustments should be made before the second half of the year begins.
Imagine driving from Boston to Florida without ever checking a map, GPS, or road signs. You might eventually arrive, but odds are you’ll waste a lot of time, fuel, and effort getting there.
Business works much the same way.
The most successful business owners don’t simply work hard. They routinely evaluate progress against their objectives. They review financial results, assess operational performance, and make course corrections when necessary.
A mid-year review creates clarity. It allows owners to move from reacting to circumstances toward intentionally leading their businesses.
As you evaluate the first half of the year, consider these questions:
1. Are Revenue and Profitability Tracking as Expected?
Revenue often receives the most attention, but profitability ultimately determines the health of a business.
Has revenue grown as anticipated?
Have margins remained healthy or are the declining?
Have rising expenses quietly reduced profitability?
Many business owners are surprised to discover that sales have increased while profits have remained flat. A mid-year review provides an opportunity to identify those trends before they become year-end disappointments.
2. Is Cash Flow Supporting Your Goals?
Profit and cash flow are NOT the same thing.
A business can appear successful on paper while still creating unnecessary financial stress if cash flow is inconsistent or poorly managed.
Now is an excellent time to review working capital, debt obligations, upcoming capital expenditures, and liquidity needs for the remainder of the year.
Cash flow rarely becomes a problem overnight. More often, it becomes a problem because warning signs were ignored.
3. Do You Have the Right People in the Right Seats?
Business growth almost always creates pressure on people and processes.
Are your key employees thriving?
Have responsibilities outgrown certain roles?
Are there leadership gaps that need attention?
One of the most common challenges we observe is that owners continue carrying responsibilities that should have been delegated months or even years earlier.
The middle of the year is an ideal time to strengthen the team before entering the final stretch of the year.
4. Is Your Business Creating Personal Wealth?
This may be the most important question of all.
Many owners become so focused on growing their businesses that they forget why they started building them in the first place.
Is the business creating wealth outside of the business?
Are personal investments growing?
Are retirement accounts being funded?
Is the business supporting your family’s long-term goals?
A successful company is a tremendous asset. However, true financial independence typically comes from converting a portion of business success into diversified personal wealth over time.
One of the most expensive mistakes business owners make is waiting until year-end to evaluate performance.
By December, there is little time left to meaningfully influence results.
June provides something far more valuable: opportunity.
There is still time to improve profitability, strengthen cash flow, develop key employees, adjust strategy, and make progress toward both business and personal financial goals.
The second half of the year can often be more impactful than the first—provided you enter it with clarity and intention.
The purpose of a mid-year review isn’t to criticize what hasn’t been accomplished.
It’s to honestly evaluate where you are today and make better decisions moving forward.
Every successful business encounters obstacles. Every business owner faces unexpected challenges. The difference is that great leaders continually assess, adapt, and move forward.
As we enter the second half of the year, this is an excellent time to step back, evaluate your progress, and ensure your business is serving the goals that matter most to you, your family, and your future.
If you’d like a second set of eyes on your business, personal financial plan, or long-term objectives, we’d be happy to have that conversation. Sometimes a brief review can provide the clarity needed to make the remainder of the year your strongest yet.
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