make much better decisions and end up getting better results, you consider following what I call my “Unbreakable Rule” of taking advice. It pains me to watch people listening carefully and following the advice being given by people who simply have not earned the right to dispense it. When I started applying this rule several years ago, the results were astonishing — I’d encourage you to do try and it see how it works. Here’s something that happened to me recently which illustrates the point perfectly. Earlier this year, I received this email message:
“Greg, I hope your enjoying your summer. I’d like to schedule some time over the next few weeks to get together for a Financial Advice Review. I would like to review your financial goals to identify what is important to you. I’ve attached the CIBC Imperial Service Financial Advice Review which outlines our planning process.
Would you be available September 10th at 11am?” Ahh. Sounds like my financial advisor, someone I trust to give me advice on financial matters checking in to see how I’m doing, because they care so much about me. Right? Wrong. The person who sent this email, a financial advisor for one of the banks I happen to hold one of my mortgages with, has never met me and had not emailed me for a couple of years prior. I’ve never completed a “Financial Advice Review” for them, nor have they ever given me financial advice. Basically, this is just a sales contact to try and sell me financial services. Did I mention I never gave them permission to use my email to solicit me? I’m sure it’s buried somewhere in the 98 page stack of documents I signed when I arranged the mortgage. Now, most people would just automatically respond to this request, say “sure”, and start filling out their financial review package. But here’s the problem — the financial industry is a marketing machine. They’ve gotten good at convincing people they should trust a financial advisor — regardless of what expertise or knowledge an advisor actually brings to the table. So this is where my Unbreakable Rule comes in, and here it is:“Only Take Advice From People Who Are Doing And Getting What It Is That You Want To Do And Get”
In other words, you should never take advice from someone about a topic or issue when they have not proven to you they’ve earned the right to give that advice, and they have achieved a higher level of competence in that area than you have. It makes sense, doesn’t it? How on earth can you learn something from an advisor when you’re already getting better results and have achieved more than they have? Here is how I responded to her ..“Hi <Name Removed For Obvious Reasons>:
Thank you for your email. I would be pleased to meet with you and complete this review statement, but I would appreciate reviewing your completed statement before I do so. My policy is to only utilize advisors that have a higher net worth than I do, as logic dictates that you should only listen to those who are actually doing better than you. No only take advice from those who are proven to e successful with their own money, before I allow them to manage any of mine. So if you could be so kind as to forward your completed statement in confidence for my review, we can go from there. Thank you, Greg” You can imagine how well this went over (like a lead balloon). And guess what her reply was? That’s right, there WAS none. I had called the ridiculous bluff that happens every day in the financial industry, and she realized I wouldn’t be one of the “easy marks” that she normally works with. Her time would be better spent finding another sucker with no financial confidence or knowledge that she could peddle her crappy products to happily, to earn her commissions. She didn’t even give me the courtesy of a reply, because she KNEW there was nothing she could say to defend her unwillingness (or embarrassment) to share her own financial details with me. When you think about it, shouldn’t it be reasonable thing to ask someone to show you their financial position, if they’re planning to advice you on yours? Am I being harsh on financial advisors? Not really, given what a scam the financial industry really is, in so many ways. I’ll save you the diatribe on the financial industry for now, but my point is that whether it’s financial help, relationship advice or anything else, you should ONLY take advice from someone who’s earned the right to give you that advice — because they’re getting and doing the results that you’re looking to achieve. I can’t count how many “relationship coaches” I’ve met that have horrible relationships. Financial and success gurus who literally cannot come to a meeting or event because they can’t afford the airfare. Health gurus and advisors that are 40 pounds overweight. It goes on and on. I’m sick and tired of it, because I think it’s ultimately leading people down the wrong path. Never be afraid to ask someone why you should follow their advice, and how they’ve earned the right to provide you mentoring, coaching or advice. I can’t say that following this Unbreakable Rule is easy, but I CAN guarantee you that it will quickly eliminate the frauds and undeserving “experts” that are more interested in your money than they are in getting you to where you want to go.]]>
62 Responses
Amen! I’ve felt this way for years but you are the person I’ve heard say it.
Thanks for the post Greg – I agree that it’s so important to get advice and support from those who ‘walk their talk’. This is a good reminder of that.
Greg – so, what if the shoe is on the other foot? What if you want to BE the person giving the advice? This is a good tip for marketing yourself, as well as choosing an adviser. If I want to market my web services for business owners who want more visits, income and sales, that’s what I need to create and show for myself.
So, this is a good guideline for marketing our own advice as well as shopping for a provider. Thanks for this powerful way to look at it from the other side.
Well you hope that your prospects don’t read my blog! 🙂 Seriously, I give this advice to my community for your benefit, but it doesn’t mean that you have to follow this advice when you’re providing advice.
Thanks Greg for this insight. I recommend the book “The richest man i Babylon” by George.S.Clason. The book was first published in 1926, but are now more current than ever.
I couldn’t agree with you more, Greg!! I am very much a “walk the talk” type of person and one of the first questions I ask people who try to sell me something is whether or not they actually use the product themselves. If they say yes, I ask follow up questions to determine their level of use and/or satisfaction. Usually, I end up catching them in a lie and then have fun watching them back peddle to try to fix things! 8~)
Great artcile Greg. Yes, their are a lot of bullshitters out there putting themselves in special positions of authority after reading a few books and know the concepts but have not done it. Harv Eker said something like “If you have not done it, you dont know it!” or words to that effect.
Yup, and I generally agree with that.
Pretty much the same response I’ve given to those who tried to pitch me on what it takes to “retire”; my first question is simply “Are you retired?”. Their pitch falls off pretty fast from there.
Greg, where were you a few years ago? 🙂 Live and learn is what I did a few years ago but with my business…
Why should this be considered controversial advice? Seems kinda common sense to me, though it never hurts to have common sense reinforced. Thanks, Greg!
You know what they say about common sense.. 🙂
GREAT post Greg! I’ve been preaching this for years! Especially about certain
so-called “experts” in the self-improvement industry who have not (and do not) do what they are “selling” they can advise others on. One of the main reasons I will not associate with (or endorse) many of them. LOVED your post – keep up your great work!
Hey James, thanks – and it was awesome to be a part of your program. Enjoyed it!
An Interesting Dilemma We Face In The World…Sales vs Experience…I have found that the two don’t go hand in hand, great wake up call!
I get the point however when I was a kid working as a bus boy and wanted to become a waiter it was commonly known that you needed experience as a waiter to be promoted. It then became commonly known the only way to get promoted was to go to another restaurant altogether, lie and tell them yes indeed you did have experience thus gaining the experience you needed. Everyone has to start somewhere. Yes an advisor of any sort should have some experience but more important is the relationship you develop with that person and their willingness to work on your behalf. The problem with only taking retirement advice from someone that’s truly retired is they most likely won’t care much as they are retired and would rather not work much…….
Taking the point a little outside the context I think.
Thanks for a great (not so common anymore) common sense statement. It seems so many, especially the young, were never taught to think for themselves and are always looking for the answer in someone else s advice..
Good day <`Greg,
It is a good respond. It would be the same respond to a music teacher. Wouldn't you ask if he or she knows or do any better than you? Why would it be any different in finance?
Great advice Greg, Thank you very much!
Alain
So key to know those who advise use of any product have actually benefited from the product themselves. Why is it in our culture that people are more willing to share about their sex lives than about their financial report and explain how they got there? Entrepreneurs have sure made their mistakes, but the big financial institutions keep making money off the mistakes they make losing other people’s money, over and over again.
Because if you knew that the average financial advisor made less than $70,000 a year, would you want to take their advice? That’s the truth, and the reason why!
This is fairly common sense, but there are a few things that I would like to point out… just because your success guru cannot afford a plane ticket doesn’t mean that he hasn’t earned the right to talk about success. Your idea that net worth equates to success is flawed (in my humble opinion).
So is the idea that weight is somehow related to health.
😉
When did I say money determines someone’s success? That’s not the point I made at all – I was using financial advice very specifically in relation to the net worth example. That wouldn’t necessarily apply to ‘success’, unless of course I was looking for FINANCIAL success and that’s how I was defining success.
And there is a link between weight and health, and you know better than to say there is none Clinton.
Fantastic! I am glad you bring it up. It takes courage to be wealthy. Many thanks, Greg.
Greg, you are bang on with this article. Most, not all, financial advisors are mere salesmen who put you into the investment where they make the most commisions and MER’s.
It’s up to each person to research what they are recommending to you. If you don’t, then you have no one to blame but yourself.
good stuff, “if you can’t take the heat get out of the kitchen”
Gary I guess that Financial Advisor is not cooking anything up for you! (lol)
luv it!
This article completely disregards the old axiom of “Those who can, do. Those who can’t, teach.”
However, it invokes this one “Throw the baby out with the bath water.”
It does neither. You’ve simply missed the point I was making, which is unfortunate. I can do, proven by my track record, and I’m a great teacher. So what’s the point you are trying to make?
Hats off to you on this one. Most financial advisors are gambling with your money or doing what the latest internal analysts are recommending. As you stress, be diligent and only take advice from those which have earned your respect.
Perfect Greg!! I’m 22 years old and I have to ignore a lot of advice on a variety of subjects that family, friends, and anyone else who wants to chime in on just because I’m still young and they think that since they were 22 at one time they know EXACTLY what to do and how to do it. The easiest way for me to sort through it is to pay attention to where they are in life with finances, health, and relationships and just noticing how their all around attitude about life is. I’ve become pretty good at spotting these “unfit” people when they appear. I have high expectations of myself so I always search for the RIGHT people that have the qualifications, habits, disciplines, and lifestyle that I want to achieve. So thanks again, I sure needed this reminder to stay on my toes and watch out for those that have no clue what they’re doing or just trying to take advantage of me and my situation.
This excellent article contains a universal truth. It goes way beyond getting financial advice. I recall learning that a repair guy at an auto dealership I frequented owned a car made by a different company. Going further afield, I always ask my medical advisor (aka physician) “Are you taking this drug or following the advice that you’re recommending to me?”
One other small point: Greg, I’d find it interesting if you would comment on some of the comments. That would make it more of a dialogue.
Thanks for telling it like it is brother! Amen….
Solid advice, Greg. I had heard this advice about 6 years ago while at a business training event. I’ve never forgotten it, and have since then, have never purchased a program, book, coaching, event ticket from someone who hasn’t achieved a higher level of success than me in whatever area I’m seeking to grow in.
The bonus of this advice is that it also keep me from taking on the criticism of family members or friends who want to persuade me to “get a real job,” or to go down a different, traditional career path. I love these individuals, but the truth is, they’re don’t have what I want, and they’re not where I want to be in life, so I can lovingly just listen, and remind myself it’s not advice I need to take in.
Great reminder, and your response to that email solicitation made me giggle. Perfect.
~Edie
That’s right, Edie. Now go get a job like a normal person. 🙂
great advice! True in every area of life!
So true, thanks for the good advise.
No thanks. It’s like agreeing to be a “practice dummy” for someone who either doesn’t care enough to master whatever-it-is or is still trying to figure it out.
As I’ve often said, “Note your source. What’s their context, agenda, experience and expertise?” Your advice above is a great basis for someone to create their own board of advisors on all areas of their personal and professional life. I’ve also learned to be leery of anyone who refers to themselves as an expert.
This is excellent advice Greg, and I agree.
That said, I’m a small business preparing to offer a revised / new service- ( not financial ). I have studied and researched and am confident that the service, based on using a careful and strategic combination of multiple tried, tested principles in my industry will offer real help and enable my clients to succeed. I am applying these rules in setting up my own new website and marketing messages.
However because I’m starting out, am I forever condemned to not be a credible advisor and therefore NOT succeed, just because I’m new? My success cannot preceede selling my services, to help others succeed, In other words, I cannot prove my trustworthiness without doing business… its a ‘which comes first- the chicken or the egg” scenario – does this make sense? Help?
No, it doesn’t mean you’re ‘forever condemned’. For one thing, I assume you have some expertise that you’re looking to deliver, otherwise you wouldn’t be in the business. Second, most people will never read my blog, and therefore never question your expertise!
The truth is, my article is written for my community to help them in their own success, so when you are SEEKING advice, follow what I’ve said. That doesn’t stop you from offering advice as long as you feel you have earned the right to provide it.
I know this to be true. I learned this through costly experiences. Yet I still stay hopeful or shall I say gullible. This is a necessar reminder. Thanks!
Greg, I love the way you sound the alert for people to make sure they have done due diligence on ‘experts’. Us Aussies can be very gullible!
Great advice Greg, from someone I know I should listen to for all the reasons stated above! Thanks for this…I can be a bit of a sucker at times, this is an empowering article and I will remember and practice this rule as I move forward in pursuit of my dreams 🙂
Hi Greg, I like that way of handling “financial advisers”.
One complication about advice – people aren’t always successful for the reasons they think. So having got advice from the right people the next step is to test itin our own situation (which will always be slightly different to someone else’s)
Agreed!
Greg,
Bravo, I feel the same way. When I seek out mentors and any form the first question in mine is, Did they do it themselves or do they just teach/talk about it?
Thanks Greg
We are all Advisors in some form or another. I read the
article and chuckled at your response.
Here I’m always giving advice to the kids and I practice
what I preach.
They get real life examples of actions and results for the decisions I make.
We all have decisions in our day to day lives.
We have to make a choice
follow the crowd or break away and better ourselves by
taking actions
Thanks again for the article
Great reminder Greg. We need to be careful about our advisors and our personal info as well. Sadly, most financial advisors work on commission and are more interested in lining their pockets than providing good advice. There are very few who would suggest an option that is best for you that doesn’t make them any money. Case in point, people who had various pension fund options regarding a plant closure for a large corp. The vast majority were advised to cash in the pension and let their advisors handle it, when the best option is to stay in the pension plan and collect monthly upon retirement. My friend who worked in HR for this co tried to convince these folks to leave the pensions funds alone; however 95% cashed out. Some of these people had over $300,000 vested and were looking at guaranteed payouts of $2500/month at retirement. There is no way an advisor can guarantee that rate of return.
Shari-Ann
I Greg, I found your point very interesting, and so true, I have learned something tonight and appreciate it.
Have Happy Holidays to You and family.
Michel.
I am not hearing the character, trustworthiness, honour aspect of whom you admire as a financial leader. Do you not think that this plays an essential and vital role in whom you choose for financial adviser ? Not just for you, but the lives of those who touch yours. Is it only all about who has more money than you ?
Gail, you completely missed the point. That was, when taking advice on a specific topic such as finance, make sure the person giving it to you has success in that area. When did I say that it’s all about who has more money than you? I was specifically talking about the financial space, not generally.
That’s true Greg i totally agree with you on this, one really need to pay attention to how, when and who to take advise from, especially now there are so many (online) fraud stars who are only interested in what is in it for them, other than the ultimate aim of adding value to your life. Thanks man please keep on keeping us abreast with such information.
Hi Greg,
Thanks for sharing this valuable experience. I guess that’s how it works in today’s world either it’s via e-mail or by phone. Sales people sing the same song. But they forget, or most likely nobody told them about one fundamental rule… first, build a report (relationship) with your customer before you try to sell anything. Second rule I follow is – don’t try to sell something you wouldn’t use for yourself.
In the end, it’s all about trust, and trust is something you earn, not something you buy.
Good advice in most respects. But I’m reminded of the adage “Thems that can’t teach”…Sometimes the person who seems least likely to “advise” might just have the one key to help you unlock your stumbling block. I do agree with you that there are some cases where you are spot on. Thank you for your insights and always good and thoughtful advice.
Dear Greg. I agree with you to a point. It is like good rule but not unbreakable like 100%. I would say more like 75% true. Reason is that you missed important issue. Lets say sports. Would you listen to a player or a coach? Coach is not making the moves that he is teaching but his job is to teach not to make plays. Also, there are lot of people that can do, but can’t teach. If you see them in action they are flawless but asking them to explain it to you is a useless effort…
I would agree that you can take the point to an extreme, and coaching is an example. However it that context, I would still argue that the coach likely has a proven record of successfully helping people achieve better results in that specific thing they are coaching, at least the legitimate ones. A golf coach may know a lot more than a student about their golf swing, but that doesn’t mean the coach can perform better on all levels than the athlete. The reason Tiger Woods listens to his coach isn’t because the coach is a better golfer, but that he has proven expertise about very specific elements of the game that Tiger does not have.
Great! I laughed a lot and I totally agree with you. 🙂 Thanks! Erika
An interesting article which troubled me because it is tempting to agree.
However, I have had great help, advice and support from many people, less successful than me, to help me in my success. Some of these people have had a low self-worth. Many times I have given a bill for their services back to them and asked them to charge me more.
Absolutely, these people who profess to be experts to assist you are all out there. It is all about finding the trusted authority who can honestly help you when looking for a business coach, and mentor. How could you help me in developing my Speech-Language Pathology business in acessing contracts with school divisions , and finding private therapy clients. Sherry
I posted a good comment yesterday and it’s not here. It got denied? Why bother then asking for comments?
Wow, relax a bit. Your comment got marked as spam automatically, so I’ve marked it as approved.
I don’t “deny” or reject comments unless they’re spam or completely off topic.
My level of relaxation is irrelevant to the post content. Thx.