There is an ancient proverb which says – “there is much wisdom in a multitude of counsellors“. Another proverb says – “By wise counsel wage war”. Amazingly these proverb stated thousands of years ago still ring perfectly true today.
So what does it mean?
Simply, if you build a team of smart advisors around you who understand your investing objectives, risk profile and financial capability, and who at very short notice can offer you their expertise in regard to a investment decision you plan to make, you are more likely to make wise and astute investment decisions and be in a position to build lasting wealth.
Building a team of advisors around you will enable you to seek smart advice before diving head first into a deal without proper consideration. The advice might assist with negotiating an unbelievable deal, structuring your affairs to provide maximum tax benefit and asset protection, and knowing the right time to get in and get out – oh, and most importantly – knowing when to sit on your hands and do nothing!
Sadly we see it all too often – a person entering into a deal based on a “hot tip” from a relative or friend, or buying something following a slick presentation from a salesperson. This person usually pays far too much, buys at the wrong time, and ordinarily has purchased something which is not best suited to their current situation in life.
Almost invariably, my most astute (and usually wealthiest) clients are surrounded by several advisors each with different fields of expertise.
From a lawyers perspective, it is a joy to be able provide advice to a client on a business deal or property transaction when they have already sought specialised advice from their accountant, financial advisor, business mentor or trusted property agent.
My “informed” client will walk into my boardroom usually well aware of the financial viability of the deal, their capacity to handle the size of the transaction, the market risks, ideal entry and exit times and the amount they are prepared to offer to close the deal. Often they will attend with one or more of their advisors to talk over issues surrounding the deal (I am frequently called on to attend the offices of one of their other advisors to do this very thing). Now, the advisors don’t always agree, however that’s a good thing. A very good thing. As it will make my client carefully consider all of the pros and cons set before them by their trusted team before making up their own mind to invest or not.
So what can you take away from this?
If you are serious about investing and growing your wealth….. AND keeping it for life (the other half of the wealth equation), start to build a team around you of varied advisors who are skilled in their field of expertise and who you trust and feel comfortable working with.
Build a relationship with them and ensure you involve them on every investment decision you intend to make (big or small, as even a small deal can cause your budding empire to collapse if all goes horribly wrong!).
You will learn a lot along the way and will yourself develop as an astute investor.
You will likely pay for the advice, but it will be some of the best money you will ever spend on your investment journey.
Ashley Gullo is the Senior Partner of Brandon & Gullo Lawyers and author of “Negotiate Well”. If you have any question in regard to this article or investing in general, he can be contacted at: firstname.lastname@example.org or www.bglaw.com.au or on 07 5479 4733.
Please mentioned you are a friend of Pumped On Property for VIP treatment.