10 Biggest Financial Mistakes That I See Clients Make
By Mike Durstein
Over a decade in this business has taught me that financial success is rarely about finding the “perfect” investment. More often, it comes down to behavior, planning ahead, avoiding costly mistakes, and having the right people in your corner. Below is a list of the 10 biggest mistakes that I’ve seen clients make over my ten years in business.
- Waiting too long to take financial planning seriously
There’s never a “perfect” time to get started. Life is always busy, and something else always takes priority. But the earlier someone begins planning, the more options they have. Waiting too long often leads to higher costs, fewer choices, and less flexibility.
- Judging success solely on investment returns
Performance matters, but it’s only one piece of the puzzle. Taxes, income strategy, risk management, and behavior often have a bigger impact over time than chasing an extra percent or two of return.
- Having accounts scattered everywhere
It’s more common than most people realize. I see it a lot — multiple brokerage accounts, old 401(k)s, and even forgotten accounts from years ago. Over time, this creates a disjointed and inefficient strategy. Simplicity and consolidation usually lead to better outcomes.
- Approaching retirement without a clear income plan
Retirement isn’t defined by a number or an age. In most cases, it’s defined by income. The key is knowing how to turn assets into a reliable, tax-efficient paycheck. Without that clarity, retirement can feel uncertain right when it shouldn’t.
- Underestimating the impact of taxes
Taxes are often one of the largest expenses over time, yet they’re frequently overlooked. I see people spend more energy cutting small monthly expenses than improving their overall tax strategy. How assets are positioned—and withdrawn—matters.
- Letting emotion drive major financial decisions
Fear and the impulse to chase returns tend to show up at the worst possible times. Markets will always fluctuate, but the costliest mistakes usually come from reacting emotionally rather than sticking to a plan.
- Not knowing their expenses and spending habits
This is one of the most important inputs in any financial plan and one of the most overlooked. Without a clear understanding of spending, it’s nearly impossible to accurately plan for retirement. Guessing leads to poor decisions.
- Treating retirement as a finish line
Retirement isn’t the end. It’s the start of a new phase with a different set of challenges. The need for planning doesn’t go away. If anything, it becomes more important once income shifts from earned to generated.
- Ignoring the “what ifs”
Life is rarely linear. Markets change, health changes, priorities evolve. A good plan should account for both the expected and the unexpected, not just assume everything will go perfectly.
- Trying to do everything alone
Many people are capable and well-informed, but that doesn’t mean they should go it alone. A good advisor not only brings strategy and accountability, but can also help identify risks, blind spots, fraud attempts, and costly mistakes that are easy to miss when managing everything yourself.
Bottom line:
None of these mistakes are unusual and most are fixable. The goal isn’t perfection. It’s having a clear, coordinated plan that actually works when it matters most.
This is the second in my series sharing 10 lessons from ten years. The first in this series is 10 Things I Learned from 10 Years as a Financial Advisor. Stay tuned for the next installment in the series and you can contact me at https://dsfg.com/our-team/michael-durstein/.
