“It ain’t what you don’t know that gets you in trouble. It’s what you know for sure that just ain’t so.” – Mark Twain
One of the costliest mistakes I have seen people make is from those who “knew” all the answers.
They all were very confident in their decisions. Instead of getting objective advice from qualified people, they sought opinions that agreed with their positions.
I talked with a guy who had 98% of his net worth in one stock. We discussed the risks and some options that could be best for him and his family. He said he was going to talk it over with “Bill.” I asked, “Who’s Bill?” “Oh, he is a friend who works in the produce department”.
I have seen:
- Single stock positions go from millions of dollars to zero.
- Financial advisors recommend selling something and were unaware of it, causing $100,000 in taxes.
- People hire handymen to do complex construction that costs over $3 million to correct.
It is not the opportunities you miss that kill you, it is the ones you make that blow up that do.
It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.
The Dunning-Kruger effect is the phenomenon whereby people with little knowledge tend to overestimate their abilities, precisely because they ignore how much knowledge is necessary to master them.
Of course, you know all of this, right? This article wasn’t meant for you. It was meant for your friend who needs it. Simply pass it along to them…
The Riverbend team did a fantastic job on moving our office. May be a few weeks before we get totally settled in. The Riverbend sign goes up in a couple of weeks. Feel free to stop by sometime.
Oh, and let me know if your friend has any questions.
On the lighter side, Elliott came home for the long weekend. He did a lot of sleeping and studying. It was good to have him home. He may not be back until fall break in late October. We head up there for parents’ weekend on September 22nd.
I hope all is well with you and your family,
Finger Financial Five – 5 points in 5 minutes or less – is to provide you with a weekly shot of useful financial information. My intention is to share principles, so that you will have more clarity and peace, that help you make better financial decisions.
Investment advice offered through Stratos Wealth Advisors, LLC, a registered investment advisor. Stratos Wealth Advisors, LLC and Riverbend Wealth Management are separate entities.
This content is developed from sources believed to be providing accurate information and provided by Riverbend Wealth Management. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Stratos Wealth Partners and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
Riverbend Wealth Management does not compensate existing or former clients for testimonials or endorsements.