The financial services industry is complex and knowledge intensive. Individuals who are serious about building wealth— and not just investing—cannot casually assume that they can do it on their own in their spare time. First, most people don't have much spare time to consistently devote to this goal. And second, as you delve into the complexity of building wealth, you will quickly realize why it is a more-than-full time occupation especially for the best financial experts. Building wealth isn't just a simple matter of making money in the stock market. It involves retirement planning, tax planning, cash and credit management, as well as mapping out an investment strategy that supports your broad lifestyle goals now and into the future.

The first question you must ask yourself when considering whether or not to seek professional advice is this: do I have the time, the skill, the desire and the objectivity to become my own financial expert? If the answer is "yes, definitely" then there are ways to build wealth on your own. If the answer is "perhaps," then consider these facts.

Many people, especially in the bull market we have been enjoying, have decided to try investing. Some of them have been at it for 5 to 10 years and consider themselves successful. If you're one of those, ask yourself this question: Have you consistently beat the S&P 500 during that time? Look objectively at your entire track record, not just the best years. Factor in all the costs of investing, including fees and commissions. The chances are very high that you haven't beaten the S&P 500, especially since most professional investment managers have failed to do so. Now add in the one thing most of us forget to calculate—the price of your time—and ask yourself again, "Has the benefit of being your own expert equaled or outweighed the cost?"

A recent study by Brad Barber and Terrance Odean from the University of California at Davis demonstrates that the more investors trade, the lower their return. The 20% who traded the most earned a return of 11.4% while the S&P 500 earned 17.9% in the same period. More convincing data have come from studies by Hewitt Associates, a leading 401K plan administrator. The chart below shows that there was a strong surge in switching from equities into bonds as the Dow declined into August 31st 1998.

This was a predictable reaction, which meant that switching was clearly the wrong choice. When the market rapidly reversed itself, it was difficult to get back in again. The point? Many investors who act without professional counsel insist that they can tolerate risk and won't sell in a correction. But we tend to overreact to financial news when we most need to retain our objectivity. Hourly updates about a 20% correction in the headline news can easily look like the market is going to get much worse, or possibly that the bull market is over for good.

Keeping your cool in the face of market volatility is one great reason to rely on a professional. Working with someone who understands all the complexities of building wealth, which is far more than profiting in the stock market, is another. Nowadays, you can choose what kind of advisor you want to work with and how much personal service you need. But no matter what type of advisor you seek, hiring an expert can save you time and agony.

Be the expert…or hire one! Personal finance and making a retirement plan is serious business. You need to get the fundamentals down pat, spend a lifetime updating yourself on the subject, and learn the ins and outs of calculations for retirement in particular. For some reason people always think they can take short cuts with their retirement planning. The majority of people actually spend more time researching to buy a refrigerator than they do planning for their retirement! The biggest mistake one can make is to fail to educate themselves or hire a finance specialist to take care of them. Men and women, but especially men, hate to ask for directions. This is a cliché about driving, and I don't know if it's true or not, but it most assuredly is in personal finance.

Keith Springer is President of Capital Financial Advisory Services, a registered investment advisor, providing Wealth Management and Mortgage Consulting Services.  For more information on how to build and maintain a solid retirement plan, please contact Keith Springer at 916-925-8900 or Keith@KeithSpringer.com