To Ask or Not to Ask

The Cost of Not Getting Advice

Advice: 

“Opinion about a course of action.” Or more formally, “guidance concerning prudent future action, typically given by someone regarded as knowledgeable.”

Advice especially “Free advice” can come from so many different sources, friends, family, co-workers and strangers overhearing your conversation. I’ve even done the latter a few times in the department or grocery store. We are bombarded with it. Making it difficult to know what’s accurate or false.

That’s why when situations occur in your life that’s beyond your expertise you seek out advisors, consultants, counselors, guides, coaches, and professionals that can help you resolve your issue. 

You seek them out because you want them to listen to your needs and help solve your problems. You trust that they possess specific knowledge and experience around the circumstance you are facing. Despite their education, licensing and tools, it’s hard quantifying the benefits of their professional advice. You may feel why pay good money for something when you don’t see a certain benefit? Here’s why?

Did you know?

· There’s a Cost Associated with Not Knowing What You Don’t Know. There are things that you know you need to learn, but what about the things that you don’t know you need to learn? How are you going to become aware of them?

· There’s a Cost of Not Knowing Various Consequences. Do you understand how different things are interrelated and correlated? Actions in one area can often cause harm in another. How are you going to become aware of all the interconnected relationships and consequences?

· There’s a Cost to Making Mistakes. Can you afford to learn from your mistakes? Some mistakes are minor, while others can be quite serious. If you make a mistake, how costly will it be, and do you have the time and resources to rebound from your mishap?

· There’s a Cost of the Unknown. Do you have the temperament to do what is necessary to succeed? Sometimes the correct action or behavior is counterintuitive. Professionals are trained to cope with unplanned difficulties and disasters. How will you cope?

· There’s a Cost of Time. What is the value of your time? How will you determine when you are spending too much time trying to solve a problem versus the alternative of paying someone else to solve it?

These are just some of the decisions you will face when considering the costs of professional advice.

Knowing when to ask for advice whether medical, legal, or financial is very important. While there is a clear cost associated with engaging a financial advisor, don’t lose sight of the subtler costs of not working with one when your situation warrants it. There’s so much more you stand to gain.

Source: Zaneida Harris, CFP, President, Harris & Harris Wealth Management Group