Common Financial Planning Mistakes #3: The Piecemeal Approach


In our top financial planning mistakes series, CEO Michael Conway of Conway Wealth Group discusses why people should create a comprehensive plan rather than trying to tackle individual financial problems.


Transcript


Speaker 1: Hey everyone. What’s next on our list of the top seven financial planning mistakes? Coming in at number three, the piecemeal approach. People tend to address specific issues as they arise rather than looking at the broader picture. Many people know to purchase life insurance for example, but may not realize how that can affect cash flow for things like paying for college. Unfortunately, such a piecemeal approach can result in unintended consequences.

Instead, elements of planning like insurance work best in sync with all other parts of the plan. To avoid such mistakes, seek help in building a comprehensive plan. Certain financial advisors can oversee all the moving pieces and ensure each piece of the plan aligns with a client’s goals and needs.