It amazes me when smart, capable business people lose track of their own personal finances. The charitable view is that they are too busy building a business to pay attention to their own investments. Besides, we pay someone to handle that for us, don’t we? The cynical view is that a lot of paper fortunes during the Dot-Com mania were just illusions anyway.
The New York Times has a cautionary tale on The Perils of Being Suddenly Rich.
â€œPart of the bizarre but interesting psychology of the tech boom was the sense of hubris people developed, thinking they were impregnable to losses and defeats,â€ said Joan DiFuria, a psychotherapist who is co-founder, with Stephen Goldbart, of the Money, Meaning and Choices Institute in Kentfield, Calif., north of San Francisco. â€œThey had a fantasy that things could only go up.â€ During the boom period, Ms. DiFuria and Mr. Goldbart coined the phrase â€œsudden wealth syndrome.â€
â€œAt what point does the person with the money have some responsibility to know something about what heâ€™s doing?â€ Mr. Resnick asked. â€œIf youâ€™re smart enough to have made the money, you should be smart enough to figure out something to do with it.â€