Moorman and Company

Over the years I have heard hundreds of reasons "why I personally don't need an investment program." I have heard those excuses from cor-porate executives, professionals, children of wealthy parents, educators, small business owners, widows and divorcees, blue collar workers and artists. In fact, from listening to all those explanations, it would appear that no one ever personally invests in stocks, bonds, real estate or other products. I would be led to believe either that everyone has his or her own little niche, or that everyone is the beneficiary of some outstanding plan.

And yet, that doesn't seem to be the case. In fact, the greatest flaw in any of the arguments is that, ultimately, they lead to disastrous results when it comes to satisfying the financial needs of the individual so arguing.

Corporate Executives. ("My investment program is handled by my company.") It is quite true that the large corporations do a great deal for their executive employees. But too often they actually overdo things.

With health, accident and life insurance, as well as stock purchase plans, pension plans, and even profit sharing plans, everything for the executive is taken care of by the company. The idea is that this makes it possible for the company's executives to devote all their time and efforts to working for the company.

There are two faults in that arrangement. First, the money in an executive's pension plan starts growing appreciably only during the last few years before retirement age. If the executive doesn't work those last few years (whether because of incapacitation or dismissal), what happens with the plan? Its value may be significantly diminished. And even large corporations cannot always guarantee pensions. Mergers, division closings and economic set backs can all cause the death of a company's pension plan.

The second major flaw in the corporate arrangement is that it leaves the executive with absolutely no experience in handling his or her personal financial affairs. And, what is worse, even top executives have no one to turn to for assistance because the attorneys and accountants with whom they work on the corporate level have almost no understanding of personal financial matters.

Teachers. ("I have neither the time, the expertise, nor the money.") It is common practice to think that teachers are indifferent to money. That is a stereotype. Teachers do not voluntarily embrace poverty. They accept relative poverty because of their greater desire to teach.

With that in mind, teachers should be eager to enter investment programs. Unfortunately, they are not.

First, teachers have no training in and virtually no exposure to the business world. Secondly, teaching is very time consuming. And finally, too many teachers live on nothing higher than a subsistence level because they are poorly paid, and therefore, are unable to save.

Professionals. ("I won't be taken in again. OR: It sounds good to me.") Professionals (doctors, dentists, lawyers, accountants) are natural investors. Unfortunately, most don't act according to their nature. They either ignore the potential within them, or they persist in investing in all the wrong sorts of deals.

Because of their high incomes, many professionals are targets for every scheme that can get past their receptionists. As a result, one of two things happens. Either they continue to fall prey to every scheme, or they shut out every possible suggestion (good and bad) for invest-ment of their money.

Small Business Owners. ("My business is my investment.") Of all the people who work for a living, none need the assistance of an investment program more than the small merchant and the small manufacturer. And yet, of all the people who work, they are the most unlikely to arrange an investment program. Put succinctly, they put all their eggs in one basket and try carrying it on their heads, with no hands. The result is a sore head, a fallen basket and cracked eggs.

Widows and Divorcees. ("My husband made the investment decisions.") There is a growing trend toward women fully participating in the economic life of society. During marriage, the partners to the marriage should work together on everything that affects the marriage and the family. Husbands and wives are partners, and partners confer with, and listen to each other. It is the partnership that makes decisions, not a single partner.

Death or divorce ends marriage, but neither should interfere with a woman's abilities developed during the marriage, that is if those abilities have been developed.

Artists. ("I'm a starving artist!") Finally, I want to say something about artists, writers, musicians and composers, not that they present special problems when it comes to investments. In that regard, they are like most of the others. Actually, I want to reverse the perspective and say that artists owe it to the rest of us to be financially free. For what a dismal place the world would be without them.

In conclusion, if you recognize any of the above excuses as your own, remember that because of those excuses, 95% of the American population over age 65 must rely on Social Security to supplement their incomes.