Are your Advisors wise?

"We are in interesting times…” 

While this may sound like the understatement of the decade (or perhaps the past 5 decades), I think it’s fair to say that our current economic situation has opened our eyes to new standards that have not been considered in many years.  New standards for risk, but also new standards for opportunity.  In opportunistic times, one must be keen in observation, careful in contemplation, and decisive in action.  Navigating this economy requires a new level of understanding and adaptation, one in which you and your colleagues must be able to apply tremendous thought and wisdom to your decision making.  Those with whom we align during these times will have tremendous impact on the success or failure of our selected course. 

Over the years, I’ve gotten to know many professional advisors in many fields.  While the breadth and depth of their skill sets may vary, most advisors boast of some level of knowledge that sets them apart from their counterparts or competition.  Knowledge.  Knowledge is handy.  Often times it’s knowledge that helps us acquire wealth.  However, I’ve come to realize that there should be a much higher premium placed on wisdom.  If knowledge participates in wealth creation, it’s wisdom that provides wealth retention.  Are your advisors wise? 

Keen observation, careful contemplation, continuous consideration, and intentional decisions are all qualities that I would equate with wisdom.  The rules of knowledge – statistics, historical returns, theorems and hypotheses are all effective when you operate within the bell curve or normalcy.  But what happens when occurrences are outliers?  What happens when you’re facing economic realities that haven’t been dealt with during your lifetime, if ever at all?  Currently, we are not inside the bell curve.  The standard deviation figures (a perceived measurement of risk) that your investment guy has been telling you about do not apply to this situation.  Without the accepted rules, knowledge will fail.  Wisdom is not defined by rules.  Wisdom is defined by observation, contemplation, and discernment in action. 

Nearly half a century ago, John F Kennedy envisioned “a great future in which our country will match its wealth with our wisdom.”  I’m not sure our country is there yet, but that does not mean you cannot be.  Surround yourself with wisdom.  There are many opportunities in this environment.  Observe what’s going on around you.  Contemplate the consequences and benefits if all that’s taking place.  And be decisive, be wise, in your actions.