Our Friends Almost Ruined Us

Question


Hi Scott,
My husband and I lost $300,000+ in the GFC — bad property, tax schemes (‘woodlots’), loans for shares, etc, all sold by a dodgy financial adviser and all of which collapsed! We have slowly shed the debts. We now follow Barefoot, are ‘hosing down’ our home loan ($185,000), have $65,000 invested, are building up our Mojo account, and have started giving Kiva loans. Despite all this, I cannot shed the resentment I have for our friends who promoted the financial adviser to us. In your experience, do people like us eventually forgive themselves for listening to bad advice?

May

Scott's Answer


Hi May,

You’ve managed to pull yourself out of a financial hole; now you need to let it go emotionally, for a few reasons:

First, the money ain’t coming back.

Second, it’s not your friends’ fault. Truth is, most people have no idea how to judge a financial planner: Did he have a nice smile? Nice suit? Salon-styled hair? More likely, he made your friends some money (well, before the GFC hit) and they were just trying to help you do the same.

Third, if you’re going to get angry at anyone, direct it at the financial advisor, not your friends. He was the one who broke your trust and did the wrong thing by you.

You know what? It’s highly likely your friends lost a lot of dough with this douchebag too. Why not have a chat to them and explain what you went through — and how you pulled yourself back up again. Just sharing that story with them will make you feel better. Promise.

Scott