The Money Guy is not for me!



It seems that I don’t need to teach you anything about the value of mentors … you overwhelmingly voted against me asking the Money Guy to manage my $7 million.

Although, some did question why I need a financial advisor at all; for example Trainee Investor said:

Question: why do you need a financial adviser? Preserving wealth is largely a matter of common sense – at least I think so (but I’m only a trainee so it would be a brave man who listens to me). It’s making it that’s hard.

It’s exactly because preserving wealth SEEMS easier than making money and SEEMS like common sense that I may need an ‘advisor’ …

… after all, $7 million is a lot of money and I am finding it harder to preserve than I expected [AJC: some of the reasons: bad markets; bad advice; and, bad management … and, who can I blame for the latter two except me?!].

So, isn’t that the point?

Find somebody who has made – and preserved – at least 10 times as much as me, and ask them to advise (more mentor) me, just as I have advised each of you on so many occasions?

After all, isn’t the impact on me at least 10 times what the impact is to you?

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15 thoughts on “The Money Guy is not for me!

  1. Adrian

    Given that the pool of people who will have made (not just inherited) US$70MM + AND will have the skills necessary to preserve wealth (lots of rich people have gone broke before) AND will be willing to spend the time to mentor you properly, how confident are you that you can find such a person?

    Also, while one mentor/adviser is probably better than no mentor/adviser, you are still looking to one person to perform that role.

    In my own case I already have a written financial plan to get me to my number in (I hope) a few years. The current version was drafted in 2006 and gets updated from time to time. I have started work on a post-number plan to manage my wealth so as to preserve it’s real value once I retire. I intend to ask several people whose judgement I trust to review that plan once it is done. I effectively get a written plan to follow (updating as needed) which should (hopefully) provide a measure of self discipline to stay the course and multiple reviews to reduce the risk of a single bad judgement call ruining my retirement.


  2. Adrian,

    I’ll throw out one more suggestion, John Bogle. He has certainly amassed a fortune and in many ways he is the father of MM301 as he invented index funds. As traineeinvestor points out it won’t be easy to get him as a mentor. That is why I didn’t suggest it at first, however even if you can’t get personal interaction you can read his books, and here is a podcast to check out as well:

    -Rick Francis

  3. Hey Adrian,
    Finding a mentor is actually one of the most difficult things in the world because you want someone who has a servant heart AND is prepared to spend time with you to find out your idiosyncrasies before ever giving you sound advice.
    It’s really hard for human beings not to act in their own self interest somewhere along the line

  4. @ Trainee Investor – $70M+ is not really that much these days: both Oprah and Guy Laliberte (Cirque Du Soleil fame) share the same Number ($1 Bill + … can’t remember exactly) and that only puts them roughly at shared for 160th place on the Forbes Rich List.

    So, it shouldn’t be a surprise that I already have number of friends and/or friend’s-friends who have made their mega-millions and put their proceeds into property, if that’s what I end up leaning towards.

    @ Rick – 50/50 Vanguard Index Funds and Berkshire Hathaway that way I would have all of the stock bases covered?

    @ Modder – An investment bank is exactly what I’m NOT looking for: pseudo-rich guys on big bonuses pushing the stock deal of the month.

    If I was going to go with a ‘theory’ advisor (do as I say, not do as I have already done to the tune of $70M+) I would go with Paul Grangaard (stock and bond laddering) and/or Zvi Bodie (Inflation-protected bonds)

    @ Ill Liquidity – Paris Hilton … an Advisor With Benefits, huh? 😛

    @ Andee – EXACTLY the message that I’m trying to get across here; if I were to find an advisor, I would be looking for the type of guy in your book …

  5. Adrain, I fail to see why you would need an adviser. You have gone from pretty much nothing,to well past 7 Million. This seems to suggest you have the ability to manage money ,at least as well as anyone who would advise you.

    I say you would continue what your doing, minus any thing that takes up much of your time.I.E. running a Business. I would think investments will hold your fortunes at a level (at this time) to keep your living standards pretty much where your at right now.

    Just my thoughts on this matter . 😉

  6. I think Corporate bonds(can deliver 20 % or more Per year) so you could have a 10 to 20 % of your money sitting in Bonds ,which require very little maintenance, and 20+ % per year could see you through pretty much anything that comes up at this point.

  7. Adrian, we are talking nothing less than a bb rating in those corporate bonds. I been reading about a guy who shows you exactly how to find those bonds with nearly no risk, and great returns.

  8. Of course,not every bod he advises will have this kind of return,but on average, he will do about a 20% per year return.

  9. @ Steve

    20% a year seems far too good to be true. I can’t believe there is a ready supply that is not toxically risky. Why would a company borrow at 20% when they should be able to get far lower rates?


  10. Because in most cases, the company isn’t paying you 20%. your getting the coupon at less than face value, with maybe an 8 % interest payment ,and sell when the coupon matures or when it reaches face value. meanwhile your collecting the 8% for the time your holding. when you sell, you end up with an effective 15 to 20 % ,and sometimes even more ,depending on the discount rate you purchased it at.

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