By Babajide Komolafe

One of the greatest boxers in history is George Foreman. He became Heavyweight champion at age 25, quit boxing after a series of defeats and a spiritual experience, and became a preacher. But financial challenges forced him to return to boxing, and he became heavyweight champion again at 45 years, making him the oldest person to achieve that feat.

While his financial challenges were due to many reasons, a major factor was that Foreman entrusted his money and investments to a longtime friend-turned-business manager. According to the movie on his life, Foreman had little or no knowledge of how his business manager invested his money. He did not make any effort to ask questions, demand reports, seek third-party opinion or check what the man was doing. By the time he discovered that his money had been mismanaged, it was too late. He was broke.

Many people have been victims of similar mistakes with devastating consequences. There are many reasons for this, but two stand out. The first is unwillingness to make the effort to know, understand and ask questions about investments, especially among people who are not detail or numbers-oriented.
The second reason, which appeared to be the case with Foreman and his friend, is conviction in the trustworthiness of another person, especially where the fellow is believed to have knowledge and experience in finance and investment and is also a relative or close acquaintance. As a result, many people simply hand over their money and allow the fellow to decide what to invest in.

You must avoid this mistake and never allow anyone complete control of your investment decisions and activities. You must always remain in charge at every stage and in every decision about what your money is invested in.

While you need professionals such as stockbrokers, bankers, investment advisers, accountants and lawyers, rely on them mainly for advice. Don’t allow them to make investment decisions for you. A professional is expected to provide information on laws, procedures, risks, consequences and possible opportunities, and then make recommendations.

However, that is not enough. You must still make further enquiries yourself and seek opinions from other people before deciding where your money should go.
In addition, you must keep all documents relating to the investment and monitor implementation regularly.

That way, you remain fully aware and in charge of what is being done with your money. Failing to do so is simply abandoning responsibility for your financial future. (To be continued)