Public Service Announcement: Remember to close your windows this coming Thursday night.
It’s that time of the year again. It’s Lag Ba’omer, when the smell of smoke is everywhere and parental fear takes front and center as slightly older teenagers oversee dozens of slightly younger teenagers surrounded by large fires!
Lag Ba’omer is a day filled with bonfires, bows and arrows, and the celebration of deep spiritual insight, most notably, the teachings of Rabbi Shimon bar Yochai.
It’s a time of joy, symbolizing the light that breaks through darkness.
But as we gather around the flames, singing songs, roasting marshmallows, potatoes, onions, and hot dogs, it’s worth reflecting on a more grounded flame many people try to stoke on their own: the fire of financial independence. And more specifically, how dangerous it can be when those with no real investing knowledge try to take the do-it-yourself route.
DIY investments can be confusing
My social media feed is full of AI-generated videos where famous investors are recommending “Two stocks that will rise by 2000% in a few short months.” In a world where YouTube influencers and social media “experts” hand out stock tips like candy, it’s easy to believe that investing is just a matter of downloading a trading app and following a Reddit thread.
A few weeks ago, I spoke with a couple that had taken some kind of investing course, where the point was that everyone should invest on their own because investing is easy, and they can save money by doing it themselves.
They seemed a bit apprehensive, and in the end, they opened an account with me.
When we started discussing the investments, they admitted that even after taking the course, they had zero clue of how to actually invest, didn’t understand the difference between various asset classes, and had no idea how to incorporate paying for children’s weddings in the next five years as well as planning for retirement.
Lag Ba’omer isn’t just an excuse to roast marshmallows. It’s rooted in the teachings of Rabbi Shimon bar Yochai, who revealed profound layers of Torah when the superficial world couldn’t grasp them. His life reminds us that real wisdom is not acquired casually. It demands time, humility, and the guidance of teachers.
When it comes to investing, too many people confuse access with expertise. When it comes to creating some kind of legal contract, most will use a lawyer, even though they can download the contract from the internet and do it themselves. For many reasons, when it comes to money, many feel that they don’t need a professional.
Don’t get me wrong. There are certainly many people out there who can do it themselves, but you really need to be honest with yourself to determine if you are one of them.
ANOTHER CENTRAL figure of Lag Ba’omer is Rabbi Akiva. In Pirkei Avot 3:17, he teaches, “Jesting and lightheadedness accustom a person to immorality. The oral tradition is a protective fence around the Torah; tithes are a protective fence around wealth…”
This isn’t just about religious giving. It’s a profound financial insight. Just as tithing helps you build healthy boundaries around money, ensuring it’s not just consumed but managed with intention, professional advice can serve as a “fence” around your investments. A wise investor puts up protective systems. That might mean budgeting tools, regular reviews, and ensuring that their portfolio is aligned with their current goals and needs.
Lag Ba’omer is a time to celebrate knowledge but also to acknowledge what we don’t know. When Rabbi Shimon bar Yochai emerged from the cave, tradition teaches he had to relearn how to live among people. Greatness is often found in humility.
There’s a dangerous pride in pretending we understand investing when we don’t.
I’ve had so many individuals come to me to try and clear up their mess after losing tens or even hundreds of thousands of dollars trying to time the market or trade options they barely understood.
One even admitted, “I thought it was so easy, I kept getting emails to buy certain stocks. The email had an explanation of why it was going to be a great investment. It seemed to make sense.” That was his first mistake.
For most, investing isn’t about making as much money as is humanly possible. It’s to serve multiple purposes, like helping to pay for bar/bat mitzvahs, family vacations, education, weddings, retirement, and charitable giving. That’s where a lot of those pushing to do it themselves miss the boat. They solely focus on investing and totally neglect the planning aspect, which is far more important.
In addition, numerous studies have shown that “do-it-yourself” investors tend to underperform the market by about 4% a year, and they end up paying out high sums in unnecessary taxes as well. Therefore, although it may seem cheaper for an investor to handle his investments himself, he may find that over the long term he will cost himself hundreds of thousands of dollars.
Be honest with yourself. If you truly believe you can handle investing yourself, more power to you. But if you don’t, tune out the noise and ask for help.
The information contained in this article reflects the opinion of the author and not necessarily the opinion of Portfolio Resources Group, Inc. or its affiliates.
Aaron Katsman is the author of Retirement GPS: How to Navigate Your Way to A Secure Financial Future with Global Investing. www.gpsinvestor.com; aaron@lighthousecapital.co.il