Dan had worked 80 hours per week in the family business since finishing high school. Due to the long hours, at age 45 he was still single and still living at home with his father.
His father’s health was failing, unfortunately, and it was clear that the man did not have long to live. Dan knew that he would inherit a fortune upon the death of his father and decided he needed to learn about investing.
One evening, at an meeting run by Morgan Stanley, the presenter asked attendees to talk about what they were hoping to get out of the seminar. Dan said “In a year or two, my father will succumb to his cancer and I will inherit roughly $200 million. I’d like to figure out if index funds are the best option or if, with this size portfolio, there are higher returns available from alternative investments, such as hedge funds and direct ownership of assets.”
Sitting next to him was a beautiful woman in her 20s. She complimented him on his taste in clothing and asked for his business card. Dan was flattered that a woman two decades younger would take an interest in him.
Three weeks later, she became his stepmother.
- Financial Planning 101, original version (Readers: which one is better?)