By- Marion Syverson
I have discussed the differences between men and women before but a recent news story compels me to speak of this again. After all, a discussion in which I get to grab you by your adorable little ears and shake you always seems appropriate to me.
Perhaps you read about Patricia Cornwell suing her financial advisors? Cornwell, author of the award winning, best selling crime novels, has published seventeen books featuring pathologist Dr. Kay Scarpetta and has earned millions of dollars.
In late October, Cornwell sued her financial advisory firm for losses of $40 million. Many people have lost money with their investments in the two years. The bit about this story that I found shocking – yes, shocking, I say - was the lack of involvement Cornwell had in her hard-earned finances and its management.
According to news reports, especially in those publications widely read by investment professionals, there are some glaring red flags in my mind as to where some of the responsibility lies.
#1- Cornwell didn’t want to be, according to the suit, ‘distracted’ by that crazy money stuff. After all, she’s a famous writer and needs a calm and quiet environment in which to work. And, she stated in Britain’s’ Daily Express, ‘I don’t really want to know what’s going on in my business unless I’m made to face it.” Stomp you foot, Patricia, and make that pouty face. That’ll make the big, smart men help you with your millions.
#2- She never had a risk tolerance conversation, or so she claims. For a clever woman, Cornwell seems to have used her shiny pile of money to press people into letting her not be a participant in her financial affairs. Maybe she said, ‘It hurts my head and I don’t like it.”
I’ve got a message for Patricia Cornwell: Don’t try that in my office. I have turned away clients who thought they could dump the responsibility of their finances. I like shiny things, and a large pile of jingly money definitely counts. But there is no way that your bag of cash excuses you from getting a face-to-face sit down at least annually for a discussion on the financial progress we’re making towards your goals. Take that big ole bag of money to the many firms that’ll allow you to ignore your own checkbook and leave it their hands.
In my book (Have I mentioned I’ve written a book? Just in case I haven’t, check out Real Deal: Making Big Changes with Small Change) I have a chapter that includes the story of Paula Zahn. Married to a man who apparently enjoyed financial management, when they divorced her lawsuit claimed that he had, ‘spun a Byzantine web of investments’ and she was left with little to show of her $25 million in earnings.
What’s Marion’s lesson for today? Money’s hard to understand for you. I get that. We all have different abilities and talents. I stink at a bunch of things in which you probably excel. However (and I’m sure you know what’s coming, little chickadee), pull up your big person panties and pay attention when figuring out your finances. Please. Let the lunacy of others be a guide to you so we don’t have to read about your sad story in tomorrow’s paper.
Disclosure:
Only securities and advisory services offered through Wall Street Financial Group, Inc. Registered Investment Advisor. Member FINRA/SIPC. Norumbega Financial and Wall Street Financial Group, Inc., are separate entities, independently owned and operated.
