Lessons from Greg Norman and Robin Williams: Don't Build Your Financial World on a Dream

This past week has caused me to reflect upon the vastly different ways the seemingly very wealthy, at the top of their game, handle financial stress and difficult decisions. About ten years ago, Greg Norman, a professional golfer who changed the course of worldwide professional golf, was in the throes of an extremely expensive divorce and had to make some hard financial decisions. How would he handle a $100 million dollar divorce? Greg, a seasoned financial veteran with a team of financial advisors, decided he would sell his dream yacht “Aussie Rules”, an initial investment of over $70 million. This decision would help finance his divorce, rumored to be $100 million +, so he could settle his commitment and get on with his life. The boat was a 5-year exercise in love, coming from a man who spends his swashbuckling life enjoying the fruits of the ocean, but he knew toys could be replaced.

On the other side of the coin, Robin Williams, a man of similar age, maybe slightly past his prime but certainly with marketable skills, faced financial stress of his own. Robin purchased a very expensive second home in Napa Valley, rumored to cost $35 million. Robin faced similar expensive divorces, costing many millions, but chose to keep his dream home. The financial team he employed, but didn’t listen to, had it correct. His celebrity very well could have been used to sell his dream home in Napa, but the lack of financial need or stubbornness delayed the sale. This financial tragedy might have been avoided, but we will never know.

My take from these tales is simple: if you build your financial future on a toy, a huge first or second home, or the insane stock market, beware of the risk you are taking with you and your family’s financial future. Great financial plans are built on a solid foundation first, and then it may be prudent to invest in risky financial plays in real estate or the stock market.

If you want to see what a prudent financial pyramid looks like, send me or Erin a quick email, and we will forward a realistic, solid, well grounded look at a diagram that has worked for centuries. Good financial choices are a learned art form. We can help.

Mike Giffin, President