When I ask for advice there is an assumption or expectation that my advisor knows what they are doing.If I go to the doctor I expect they have the qualifications and experience to advise me on my health. And if they don’t they will refer me to a specialist. It is common place to ask “Have you dealt with this before? Should I see a specialist?”If I talk to someone about an investment I expect the same – that they will have the necessary qualifications and experience.
So why don’t we ask “What is your net worth and what have you invested in?” before we take their advice?
Is it too embarrassing?
I have just read this month’s property investment magazines and there was an article on choosing your advisor.
They suggested to ask questions about their qualifications, their reports and what products they suggest.
But they never suggest to ask whether your advisor has been successful in what they are advising??
We all know that in investing you learn a lot by doing, and particularly in property investing, doing it over the long haul.
It seems everyone is quoted as an expert and they have extremely wide often opposing views.
I think asking the embarrassing question “what is your net worth and how did you make that money” is an essential question.
We shouldn’t be afraid to ask it! And definitely one worth asking when you next consider taking someone’s advice.
1. One Property A Year Club Melbourne – Tuesday July 31 2012. A wonderful group of property investors focused on education and inspiration. You can check out what Peter Cook had to say about it on his web site (and while you’re there download a free white paper). If you’re keen to come along please call me 03 9012 9784.
2. One Property A Year Club SYDNEY – Thursday August 2 2012 Meet with a group of like minded investors who want to learn more and stay focused. Location: Sydney CBD. Call me on 03 9012 9784.