Proverys 11:14-15 says "There there is no guidance of people falls, but in the abundance of counselors, there is safety. Whoever puts up security for a stranger will surely suffer harm. But he who hates striking hands in pledge is secure.”
You may think that sounds a bit cryptic. What does it mean? At Lord and Richards, we’re often talking about security in your financial independence. Notice the word “secure” in the verses. As we meet with folks every day, what we find over and over, is that people are worried that events out of their control are going to cause harm to their retirement. So what we do at Lord and Richards is help you build a plan to achieve financial independence and financial security so you can retire without worry. We do it all from a biblical point of view which is key as believers.
So, let’s answer the question we started with, “do you need advice? Do you need financial advice?” According to the verse, it’s important to seek counsel from an abundance of counselors. We know it’s important in life to get wise advice, especially when we’re up against a challenging situation. Think about if you have a legal situation, like a car accident or you’re being sued. You should seek the advice of an attorney that’s done this over and over for many people. What if you’re facing a medical difficulty? Doesn’t it make sense to get advice from somebody who has studied the body and practices medicine?
And pivoting this illustration to our finances, we need to seek advice from financial advisors. All of us will need advice and counsel when we start considering retirement because it’s difficult to do it ourselves. You need to look for a fiduciary, someone who will put your interests first.
DO YOU NEED FINANCIAL ADVICE? ||
There’s a specific kind of license called a Series 65 that requires to be a fiduciary. We want someone who’s legally bound to put your interests first by law and license. Look for someone with experience, someone who’s dealt with situation just like you’re facing over and over and over again. And of course, look for success, a consistent track record.
If someone can’t achieve successfollowing their own counsel, how can they help you? So many times, we see people giving out advice who literally don’t follow it themselves. Or maybe their own advice is putting them in financial distress or difficulty, bankruptcy, financial collapse and so on. Retirement planning and wealth management is one of those areas where you need an abundance of counselors.
Going back to the verse, notice it says “whoever puts up security for a stranger will surely suffer harm, but he who hates striking hands and pledges secure.” This is where wise counsel can help you. Often, people collateralize their obligations, but knowing which kinds of obligations you should put up collateral for and which ones you shouldn’t is very important.
It's always best to negotiate without collateral. The Bible warns us not to lend out assets to people unless its close friends and families because you need to be prepared for the possibility of not getting it back.
When we pivot to the subject of financial advice and counseling, who are the people we should avoid? It’s a simple answer. Avoid celebrities and people who sell their advice as entertainment. Our team at Lord and Richards is not here to see advice as entertainment. We’re here to counsel you and hopefully have the opportunity to help you one on one.
When former stockbrokers go on television, they are paid to stir up excitement. I know this, because I’ve been asked by certain media to appear and make comments about the financial state of the economy. So if you watch stockbrokers get amped up and angry about the way the market is headed, sure you can certainly find entertainment in that, but do not get your financial advice from them.
How about people who made it big in real estate, and now that they’re successful, feel qualified because they can check off one of those three items to give you financial advice. We often find ourselves attracted to people who may be made of money to give us financial advice about our investment portfolio, but that doesn’t deem them qualified. Remember, we’re looking for someone who’s a fiduciary and who’s legally required to act in your best interest.
We have a major television personality right now, who’s unlicensed, giving investment advice and of course we’re talking about Dave Ramsey. I’ve researched him, seen his YouTube videos and listened to his show. We need to be careful. Dave Ramsey does not have to have any long-term relationships with the people he’s giving advice to and that’s a red flag. If asked about it, he says “well it’s just a financial opinion.” But an opinion is another word for advice.
You may be thinking, “Colin, I need genuine qualified counsel about my financial situation.” Well we’re talking to folks like you every day and it really begins with a conversation. Our team would love to chat with you. You can reach us online at lordandrichards.com or call us at (720) 214-6801.