The Danger of Irrelevant Advice and Why Competence Trumps Passion

We all crave a shortcut to success, and nothing sounds better than a billionaire telling you to "follow your passion." But if you’ve ever tried to apply that advice to your real life, you know it often leads to frustration, not freedom. The core issue is that advice, particularly from the extremely successful, is rarely tailored made for you. It's a snapshot of what worked for them, at a specific time, with resources you may not have. It's time to stop taking advice blindly and start navigating your career strategically.

The Luxury of Passion: Competence First

We take a hard look at the "follow your passion" trope, which a CNBC article calls the worst career advice billionaires give. We agree with the sentiment that passion is a luxury of the rich and not realistic for most people. Passion presumes the opportunity to monetize will just present itself, but the reality is that passion tends to follow competence, not the other way around.

Instead of chasing a feeling, focus on becoming skilled and valuable in areas where the market has high demand. If your passion doesn't have market utility, if it's not moving units, it won't pay the bills and will ultimately lead to stress, not freedom. The people who can afford to "follow their passion" are the ones who already have a secure financial foundation, meaning their livelihood is not dependent on that passion generating income.

The Context of Capital: Income vs. Assets

One of the most dangerous forms of irrelevant advice comes from high-net-worth individuals speaking on finance or taxes. I see it all the time with clients who want to pay zero taxes because they heard some wealthy celebrity did. This is a prime example of context collapsing.

As an individual trying to get a mortgage, you have to leverage your income to get financing. Your tax return needs to show sufficient income, not all negatives. The folks you’re shouting about that pay no taxes are leveraging hundreds of millions of dollars of free and clear assets to get financing. If you don't have that capital, their advice does not apply to you. The lesson here is that you must figure out if the advice really applies to your situation, no matter how good it sounds.

Timing, Luck, and the Packaged Story

Another crucial factor to screen for is the influence of timing and luck. When successful people package their story, they often negate the fact that timing plays a massive role in their journey. I talked about Shaquille O'Neal investing in Google after overhearing a conversation, simply getting lucky and being in the right place at the right time.

Even as advisors, we realize that the same strategies that worked when money was cheap during the COVID era might not work today when interest rates are high. A real estate agent's success is not just due to skill; it could be significantly impacted by low interest rates. When we hear old-school advice like "you guys don’t know how to save," we must remember that the value of money and houses was fundamentally different just a few years ago. Always ask: What were the factors around when you made that decision?

The Foundation First: Advice is Not Research

We agree on one major rule: advice should not be used as research. Research is about building the frame of your puzzle. Advice is only a collection of add-on pieces that help you fill out the picture, not the foundation or the road map.

When seeking advice, your first step should be to go home, think about it, research it, and sleep on it. Take your emotions out of the conversation. Ask yourself if the person had your best interest at heart or if they are speaking from their own failed experience. We recommend seeking structural or foundational advice, the kind that makes sure you’ve checked all the necessary boxes. When you build a foundation properly and meet the right timing, you’ll be successful.

Watch the full episode at https://youtu.be/w2GzunYnRnI

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