Praxeology- Uncertainty

“Understanding is always based on incomplete knowledge. We may believe we know the motives of the acting men, the ends they are aiming at, and the means they plan to apply for the attainment of these ends. We have a definite opinion with regard to the effects to be expected from the operation of these factors. But this knowledge is defective. We cannot exclude beforehand the possibility that we have erred in the appraisal of their influence or have failed to take into consideration some factors whose interference we did not foresee at all, or not in a correct way.”Ludwig von Mises, Human Action

When you work with a person’s finances, creating a plan, or presentation, it is always important to remain humble.  You must be humble in your understanding of their situation.  You must be humble concerning your notes.  You must be humble concerning the models that you use and the presentations you use to support the help you are offering.

You chances of being a better advisor improves when you remain objective to the client’s situation (as objective as a person can be).  In my opinion, it is proper to lead you client toward possible solutions and allow them this opportunity of discovery.   Some may suggest that this is a sales funnel.  I don’t.  I will suggest this is teaching and the great advisors are great teachers.

So, how can an advisor better explain this uncertainty?  Let’s find out below.

 http://praxeology.tv/ http://mises.org/humanaction/chap6sec4.asp

The tenth lesson https://hessenflow.wordpress.com/2011/09/10/the-law-of-diminishing-marginal-utility/

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About Christopher Hessenflow

Christopher Hessenflow is a financial planner in the Chicago area. He works with all sorts of people who are much more interesting than he is. He enjoys his career which lends him time to think and, sometimes, be creative. Chip was born bald.
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One Response to Praxeology- Uncertainty

  1. Pingback: Praxeology- Time | Practical Praxeology

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