A veteran financial adviser who has spent more than three decades helping families build wealth says many Americans are focusing on the wrong part of money management. Ted Jenkin, who has managed billions of dollars for clients, argues that financial success depends less on making perfect choices and more on avoiding a few catastrophic ones.
In that view, one habit consistently separates people who build lasting wealth from those who struggle to keep it: wealthy families do not make major financial decisions alone. Jenkin warns that the more successful a person becomes, the easier it is to believe outside advice is no longer necessary. That overconfidence, he says, often arrives just before the most expensive mistakes.
Crucial money moves such as buying a vacation home, selling a business, exercising stock options, investing a large inheritance, deciding when to take Social Security, or retiring a few years early can all produce losses of hundreds of thousands or even millions of dollars if handled poorly. Yet many people spend more time reading online reviews before buying a $500 television than they do seeking advice before making a $500,000 decision, he notes.
The most financially successful people Jenkin has worked with tend to rely on what he calls a «financial board of directors.» Just as corporations install boards because even strong chief executives have blind spots, he says, a personal financial life deserves the same level of accountability. The group does not have to be formal. It simply needs members who bring different perspectives and are willing to challenge the decision-maker's thinking.
Jenkin points to four types of people worth having in that group. The first is someone who can play devil's advocate. People naturally seek out others who agree with them, but that comfort can be dangerous. The best financial decisions, he says, are often sharpened by a person who is ready to ask, «What if you're wrong?»
A second essential voice is an objective adviser. Good advice is easiest to trust when the person giving it is not earning a commission, selling a product, or benefiting from the decision. Every major financial move deserves at least one truly independent opinion, Jenkin argues. A third source of guidance comes from experience. Someone who has lived through multiple recessions, bull markets, housing booms and crashes carries perspective that no spreadsheet can easily capture.
Financial markets change, and so do tax laws, but Jenkin says human behavior is more predictable. Fear drives investors to sell at the bottom, greed pushes them to chase assets after a sharp run-up, and pride keeps them from admitting a mistake. In his view, the biggest threat to good financial decisions is not a lack of intelligence but emotion.
Specialized expertise is another layer of protection. Even successful people have knowledge gaps in areas such as tax planning, estate strategies, insurance, investments and business succession. Recognizing those gaps is not a sign of weakness, Jenkin says, but a form of wisdom. Knowing when to ask for help can prevent errors that compound over time.
Jenkin challenges a common American belief that financial independence means doing everything alone. In practice, he says, it means building a team that supports better decision-making. The wealthiest families rarely depend on a single opinion. They ask questions, test assumptions and consult several viewpoints before making life-changing moves. Before any large financial decision, he advises asking a small set of probing questions, because the conversation that happens before a move can be more valuable than the investment itself.
The broader lesson is that wealth is not built by getting every decision right. It is built by avoiding the handful of mistakes that can permanently set a person back. In Jenkin's experience, the smartest financial move someone can make may not be choosing the right stock. It may be sitting down with a trusted adviser before acting.
