Mike Tyson, the heavy weight boxing champion of the world and one time invincible force in the ring and in the media landed on hard times several years ago. He is now in dispute with the financial planning firm over damages and losses. (read the story here – http://www.fa-mag.com/news/tyson-sues-former-financial-advisor-13462.html)
This case highlights the misguided relationship that happens with athletes and even entrepreneurs and their wealth advisors – money managers, accountants, attorneys and business managers. Sure there are all the usual suspects like greed, mistrust, power, position, and blame.
More than even I’m not looking at an individual or even a particular situation but an industry that is at fault. It’s an industry that is driven by product sales and fast-solutions to problems not well enough defined.
The key to solving any problem is clearly identifying what the problem is before solving it. And there are too many assumptions made about the problem being solved when it comes to personal wealth.
The Mike Tyson case highlights the disfunction in the industry that effects athletes, entrepreneurs, executives and women of wealth all the time. What needs to be in place is: mutual trust from the beginning; a we don’t need each other mentality; but a want to work together mentality because there is a good relational and values fit between us.
These are just a few of the guiding ideas we suggest all people look for before hiring a wealth advisor.