The Blue Roof

Yesterday I shared my experience with 5 99% lawyers and a 1% lawyer (99% of lawyers give the rest a bad name).

Today I want to talk about advisors and advice in general. Very few people ever really listen and very few people really know how to give advice. Let me share a few recent experiences.

I am thinking of buying a 4×4, but typical me, I am analysing everything to the bone and I do not want to spend a lot of money on something that is essentially a toy. After weeks of research and asking questions, I have narrowed my options down. I ask my mechanic: what engine can I build into a Nissan Sani that will give a better fuel consumption. And he starts telling me how he drives on bad roads with his car. That is fine, I have also driven on bad roads with my Mercedes, but I’d prefer not to do it. And I cannot go where I am planning to go with my Honda (and I don’t want to).

Afterwards I wonder why he reacts like this? Is it because he cannot or does not want to work on the vehicle I am buying? Is it that he personally has a problem with a 4×4? The point is, he does not answer my question, does not ask info, just starts of on a tangent with things important to him.

Last week I speak to an auditor, since I am thinking of putting my business in a legal entity. His immediate answer, without asking a single question, is “don’t, it is not worth your while.” Then I mention giving myself a company car. He sets of explaining to me what a bad idea it would be, since he drives a R300 000 car. I don’t know if I will ever spend the cost of a flat on a car. So I GIVE him info: “I prefer to drive cheap cars.” He replies: “Oh, then it makes sense.”

The problem with advice and advisors, is that we mostly don’t know the right questions. A good advisor will ask the questions before he answers anything. All the good advisors that I have met in my life, asks lots of questions and they give information to clarify the picture. And then you can make your own decisions, you don’t need any further advice. And that is how you will recognise a good advisor – they ask lots and lots of questions about YOU and YOUR GOALS and dreams. That goes for lawyers, auditors, financial advisors, mechanics, pastors and marriage counsellors, even for you and me. And I have to admit, I have also acted like the mechanic and the auditor, a few times.

The point is, if you ever tell a lawyer or accountant that you want to form a trust and they reject the idea out of hand, get up and walk away. They cannot do it, unless they have established at least why you want to do it and why you think it is necessary.

If you ever meet an advisor who rejects your idea of a specific investment out of hand …

A good advisor will discuss with you the pro’s and cons of every option so that you can make an informed decision.

Just beware salespeople disguised as advisors (they normally earn commission and can only make money by selling a specific product). Most financial advisors fall in this category.

And you have the right to question your advisor, be it the doctor, lawyer, baker or candlestick maker.

I have to share this. Yesterday I went to a 4×4 specialist and told him of my shortlist. He said to me: “stay away from that one, because they give trouble after 230 000km. You are a miser who don’t want to spend money, so don’t buy that one, the fuel consuption is to high. The other one is a good place to start.” But he first asked me what I want to do, where I want to go and what is important to me! And he told me WHY he recommends that specific vehicle. And where cars are concerned, I am much more than a miser!

As Baz Luhrmann says, “be careful whose advise you take…”