Investment planning is like doing a jigsaw puzzle. You have to combine information on assets, debt, insurance, and more in order to form the full picture of your financial life. But unlike a jigsaw puzzle, the pieces don’t always come in one box — often you have to gather them from a variety of sources.
It’s one of the reasons why many people don’t have a complete picture of their financial life, says Elizabeth “Liz” Bartley, Sales Advisory Consultant at Wells Fargo Advisors. People often forget about or lose some of their investment planning puzzle pieces, and then the picture is never really complete.
Why the full picture really matters
“From an investment standpoint, you really don’t have a good gauge of how much risk you could potentially be taking,” if you aren’t looking at all of your holdings in conjunction with each other, Bartley says. It’s not just investments. Loans, including any student loans, business loans, or mortgages, may impact your overall plan, too.
Without this full picture, individuals and their Financial Advisors end up doing their investment planning based on what amounts to faulty information. And that can result in a risk profile or asset mix that doesn’t represent your desires or needs.