Skip to main content

Adam Sarhan
A financial plan is a comprehensive evaluation of an individual’s current and future financial state. We all know the importance of creating a solid financial plan but most people fail to do it. Even the few that do create one fail to follow up and update it as the years pass and their financial situation changes. Here are two mistakes most investors make when they create a financial plan.

They Don’t Follow-Through:

Even though people pay money to create a financial plan, most investors do not follow it and actually implement the advice in the plan. It’s amazing- but if you speak to enough Certified Financial Planners (CFPs), they will tell you that most people do not follow through with the mutually agreed upon financial plan. I spoke to John C Pak, CFP® RICP® Financial Planner at Otium Advisory Group in Los Angeles California, and he told me that it is very common for people to create a financial plan but fail to implement it. John told me about one example, “I had reached out to the young client 90 days after our last meeting to follow up on the tasks assigned to him and he admitted life got busy and the plan was somewhere collecting dust.” You would think this is an isolated one-off event. Surprisingly, it’s not. It happens often.

They Don’t Update It:

Just about everything in life needs to be updated/maintained. If you buy a new car, you need to maintain it. If you buy a house, a computer, a building, the list goes on and on, just about everything in life, needs to be maintained. The same is true for a financial plan. In addition to not implementing the advice in the financial plan, the second biggest mistake that most people make when creating a financial plan is that they do not update it when their financial situation changes. Research shows us that the best financial plans are updated and evolve throughout time.

Bottom Line:

I recommend most people create a financial plan. Then, please take the time to implement it and update it. Because if you don’t, the only person you are hurting is your future self.

This article was written by Adam Sarhan from Forbes and was legally licensed by AdvisorStream through the NewsCred publisher network.

Important Disclosure Information

Please remember that past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Dechtman Wealth Management, LLC [“DWM”]), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions.  Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from DWM. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. DWM is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the DWM’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request or at

Please Note: DWM does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to DWM’s web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

Please Remember: If you are a DWM client, please contact DWM, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services.  Unless, and until, you notify us, in writing, to the contrary, we shall continue to provide services as we do currently.

Please Also Remember to advise us if you have not been receiving account statements (at least quarterly) from the account custodian.

Join our newsletter

"*" indicates required fields

This field is for validation purposes and should be left unchanged.