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How to Avoid Common Pitfalls in Financial Planning

Regardless of your age or current financial situation, a well-prepared financial plan can help you achieve your life goals and pave the way to financial independence.

A financial planner is a certified financial advisor whose main job is to help his or her clients create a holistic financial plan to better manage their money and grow it in a way that is profitable and sustainable over time.

A financial planner has in-depth knowledge of both personal finance and the ins and outs of the financial markets, as well as how to analyze financial data. They give clients advice and help in many areas, such as investing, building up assets, planning for retirement, saving, and making important life decisions. 

In order to have a successful career as a financial planner, you are going to need to have a complete grasp of finances, taxes, financial planning, and investment techniques. Clients of financial planners come from a wide range of backgrounds, including company owners, families, individuals, and entrepreneurs. They might work for a wealth management firm or on their own.


Financial planning is can be filled with potential pitfalls, but with the guidance of a professional planner, you may be able to steer clear of them. The following are the common duties associated with being an effective financial planner:

Financial Assessment

Examining clients’ finances determines whether they are on track to meet their financial objectives. Financial planners provide clients with advice and direction to help them achieve their objectives in a quicker and more effective manner.

Management of Portfolios

Financial planners are responsible for managing their clients’ investment portfolios. This entails the establishment of and management of investment accounts, including those for retirement and education savings, as well as stock and bond holdings.

Research on Investments

A financial planner’s responsibilities include monitoring the state of the financial markets, developing projections for the future, and providing customers with sound investment advice. 

Risk Management

Financial planners not only need to be able to recognize the potential dangers associated with investments but also be able to develop plans to reduce or eliminate those dangers. The mitigation of risk is frequently a critically important component of financial planning.

Scope of Expertise of Financial Planners

Financial planners are essential to the functioning of any sector that deals with money or investments. The majority of financial planners started off their careers as generalists, but as they gain expertise, they have the opportunity to specialize in an area that is of specific interest to them.

  • Banking: People often start their search for financial advisors at a bank. A financial planner at a bank can help with investments, budgets, paying off debt, getting life insurance, and even planning a business. Most financial planners focus on a few areas of expertise and can offer solutions that are tailored to their clients’ needs.
    Typical Job Titles: Financial advisor, Retirement planner
  • Insurance: Most of the time, financial planners who specialize in insurance sell insurance policies and give advice about them. Insurance advisors look at how much insurance a client can afford and how much insurance they need. These experts also help clients figure out how much coverage they need based on their budget, needs, and plans for the future.
    Typical Job Titles: Insurance advisor, Personal risk manager
  • Brokerage: Clients’ portfolio management, as well as the selection of mutual funds, exchange-traded funds (ETFs), and other assets, are among the responsibilities of financial planners who work for brokerage companies. Brokerage financial advisors often charge an annual fee that is calculated as a proportion of the assets under their management. Clients of a brokerage business may also consult with financial planners to get advice on which stocks to purchase, how long to keep them, and when to sell them.
    Typical Job Titles: Fiduciary advisory, Investment advisor
  • Consulting: One of the most common specializations chosen by financial planners is consulting. A financial planner is someone who works in the field of consulting and supports clients with many areas of their financial health, such as budgeting, retirement savings, education funds, estate planning, and other financial matters. In addition to these general services, financial consultants provide specialized investment advice and wealth management services based on in-depth market research and economic trends.
    Typical Job Titles: Financial consultant, Personal finance consultant

How to find the Right Wealth Manager?

Finding a trusted wealth manager who has the required credentials and experience to provide you with personalized, well-informed advice is crucial. You may, for instance, seek a certified investment management analyst (CIMA), a certified private wealth adviser (CPWA), or a certified financial planner (CFP), among other credentials. 

Markowski Investments is a wealth management company that puts individual and family investors’ needs first. Markowski Investments’ partners are well-versed in the dynamics between economic and political shifts and the needs of individual clients seeking assistance with their finances. The company’s founding principle was based on the idea that small investors are underserved by giant Wall Street corporations. Its purpose is to provide you with the knowledge and insight you need to keep your wealth safe and build it in accordance with your objectives.

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