Critical thinking

Isn’t it strange that every car in a used car dealership looks like an amazing deal? Why is it each time you speak with a mortgage broker there is “no better time to buy”? How come after a year of going to your chiropractor, there is still a slight misalignment that requires 12 extra bi-weekly visits? I don’t know, seems legit to me (I’m seeing Dr. Silverstein tomorrow). Anyways, for no apparent reason today’s post will be about critical thinking.

Critical thinking (or the ability to separate fact from fiction) is a fundamental skill that extends to all aspects of life. If there is one thing the world is lacking, its people who use personal research to make up their minds about important issues. For example, I don’t need to watch a 12 minute video to realize that things are bad in Africa. I KNOW things are bad (that’s why I vacation elsewhere) but how is sending $30 to an unproven charity going to help?

Don’t make any financial decisions until you have considered all of the alternatives and consulted multiple professionals (or blogs). Don’t be shy about asking how much commission these “advisors” will earn from playing around with your money. Don’t sign anything without consulting a lawyer first. Above all seek transparency, accountability and a sexy smile.

Seek a fee-based financial advisor who will charge you an initial fee for setting up a portfolio, provide tax shelter advice and give you the option of coming back annually to rebalanced your portfolio. Run-of-the-mill advisors will try and push products that pay them the highest commission, your needs for steady returns will be a secondary concern. View advisors as booty calls; when you need some advice, call them up, do the deed and be out the door before they can say “mutual fund”. Don’t stick around to cuddle, it ain’t worth it.