Seeking Wise Counsel

“No man is so foolish but he may sometimes give another good counsel, and no man so wise that he may not easily err if he takes no other counsel than his own. He that is taught only by himself has a fool for a master.”   —  Hunter S. Thompson

“He who represents himself has a fool for a client and an idiot for a lawyer.” – Old Legal Saying:

Are you a do-it yourselfer?

Many times we try to do things ourselves.    We either think we have enough skills or expertise to tackle daunting tasks or we don’t want to spend the money.  Whatever the reason, some things are best left to a professional.

Me, for example, I have discovered what I am good at and what requires professional assistance.  Take, household improvements or repairs, I learned very early on, that this is an area that requires help immediately.  After several “experiences” of making bigger problems out of small routine repairs, it is quite obvious this is an area where I lack gifts.  I can make a mountain out of a mole hill!  What starts out as a simple task to most turns into a big mess for me.  Believe me, it is not fun paying someone to not only fix the original problem, but also the new problems I have created.   Sometimes, even when we have the expertise, knowledge, or skills, we still need a sounding board to bounce ideas and receive wise counsel.

Smart in finances, needs help managing

Bill came into my office.   A middle aged CFO with over 25 years of financial experience, an MBA from a good school, and decades of investment experience.  The thorn in his side was his investment portfolio?   Himself!  Despite the schooling and book knowledge, Bill’s portfolio was a mess and nearly impossible to keep track of.  Like the weeds that took over the garden, Bill left his portfolio untamed.   Bill had “over diversified” his holdings.  He owned hundreds of stocks, mutual funds, and bonds. It would make a full-time job tracking, analyzing, and monitoring all of his positions.   Bill thought he knew what he was doing, but his results confirmed otherwise.  Like the surgeon is prohibited from performing surgery on family members, due to the emotional conflicts, Bill should have outsourced his own portfolio.

The biggest mistakes, most investors make is a lack of understanding risk.  Most investors who handle their own portfolios are too conservative or too aggressive.  Very rarely do they have the right mix.   The average do-it yourself investor experiences returns significantly lower than the markets and falls way short of the returns achieved by financial professionals.   A recent study showed that an average investor can trail an index by as much as 8% per year!

Questions to ponder:

What areas of your finances could you turn over to a professional?

Would God be proud of the way you are handling your portfolio?

What other areas of your life could you use wise counsel?

Two Proverbs:

Proverbs 15:22: “Plans fail for lack of counsel, but with many advisers they succeed.”

Proverbs 11:14: “For lack of guidance a nation falls, but many advisers make victory sure.”