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When DIY Financial Planning Goes Wrong

ended 10. July 2025

Here’s the thing: in most areas of life, DIY can save you money if you’re prepared to give up your time. But DIY financial planning often costs clients dearly—in both time and money.

Research shows that people who take financial advice end up, on average, £47,000 better off over ten years than those who try to go it alone.

Yet we all know clients who decide to “just do it themselves.”

My own worst example? A client who ignored my advice not to touch anything without speaking to me first. He ticked the wrong box on his paperwork and accidentally lost access to £200,000 of tax-free cash, triggering an £80,000 tax bill.

Fellow advisers—what’s your worst DIY disaster story? Share it below (anonymously, of course!). Let’s highlight why professional advice matters.

3 responses from the Newspage community

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Editor
Michelle Lawson
Director at Lawson Financial
There are numerous examples including people not putting their life policies into a Trust although they have bought cheap via comparison sites. Customers also actioning their own product switches can be disadvantaged as they aren't being notified of product rate drops like we are in the intermediary field. Consumers are programmed to also go for the cheapest which isn't always best so if there are fees attached and capitalised they could be thousands out of pocket.
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Editor
Rob Mansfield
Independent Financial Advisor at Rootes Wealth Management
Inaction is the silent killer. That nagging doubt in the back of your mind that you really should look at your pensions as you file another statement in the drawer. With time on your side, you have options. If you leave it to the last minute, your options narrow significantly.

Picking funds on past performance is a big pitfall. The old adage of past performance is no guide to future performance is very true but it's very easy to be seduced by a graph that seems to show neverending growth. Sometimes styles or sectors are in vogue but they can fall out of favour, which can be very painful for your balance.
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Samuel Mather-Holgate
Managing Director & IFA at Mather and Murray Financial
We recently had a client enquire about pension planning advice, and after some generic guidance decided to use carry forward to make a large lump sum contibution into his pension scheme. He mis-calculated though, and overpaid by a considerable amount and ended up having to find £30,000 to pay the tax man. All of this could have been avoided by having a relationship with an expert who can advise you on these and all sorts of other matters ongoing.