Kevin OLeary - The cold hard truth about men, women and money

Copyright 2012 Kevin OLeary

All rights reserved. The use of any part of this publication, reproduced, transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system without the prior written consent of the publisheror in the case of photocopying or other reprographic copying, license from the Canadian Copyright Licensing Agencyis an infringement of the copyright law.

Doubleday Canada and colophon are registered trademarks

Cold Hard Truth, Secret 10 and 90-Day Number are registered trademarks of OLeary Productions, Inc.

Library and Archives Canada Cataloguing in Publication

OLeary, Kevin, 1954
The cold hard truth on men, women and money / Kevin OLeary.

eISBN: 978-0-385-67851-3

1. Success in business. 2. Entrepreneurship. 3. Man-woman relationships. 4. Finance, Personal. 5. OLeary, Kevin, 1954-. 6. BusinessmenCanadaBiography. I. Title.

HD62.7.O433 2012 658 C2012-902447-3

Cover design: Terri Nimmo
Cover photograph: Kathryn Hollinrake, www.hollinrake.com

Published in Canada by Doubleday Canada,
a division of Random House of Canada Limited

www.randomhouse.ca

v3.1

I dedicate this book to my wife, Linda, who married me when I had nothing and taught me that family is senior to everything on lifes balance sheet.

This book is the story of my money, and the personal journey I went on to make it. None of the content, anecdotes, stories, advice or recollections contained in this book should be construed as investment advice, especially as they relate to any financial products I may represent. Investors should speak with their financial advisors for any investment advice and to discuss the risks of investing in any financial product. This book represents my personal opinions and should be enjoyed as such.

Kevin OLeary

I t was a Saturday afternoon in April when I was stopped on the street by an older, well-put-together woman in Yorkville, an upscale neighbourhood in downtown Toronto. She looked like shed lived a very good life and was enjoying this latest chapter in relative ease and comfort. I figured she was heading for a pricey lunch with some equally posh friends. Good for her, I thought. But even before she began to speak, I noticed something. She was smiling, but there was something unsettled about her expression.

We began to talk about a recent pitch shed watched on Dragons Den. After a bit more conversation, she felt comfortable enough to scold me a little over a tiff I had had with Amanda Lang on The Lang & OLeary Exchange. Then, she leaned in a little closer, changing the topic.

I was wondering if I couldnt ask for a bit of advice from you, Kevin, she said.

Never one to shy away from sharing my opinions, I said, Shoot. I figured she was going to ask about a stock drop or a new retirement vehicle. But her concerns were far more personal than that. She told me her husband had passed away months earlier and she was beginning to feel increasingly overwhelmed by mounting financial responsibilities, ones shed never shouldered before. Suddenly, this woman who had lived in financial comfort into her 60s found herself having trouble getting her own credit card. Everything she had before was in her husbands name. Beyond that, she found herself in charge of paying bills for the first time, but had no idea how to scrutinize them for errors or hidden costs. She spent the same amount of money she always hadToo much, she saidbut had no idea what her balances were at the end of the month. Should I sell my house, Kevin, and downsize? Or should I hold on to it? she asked. Her family was beginning to pester her about the estate. She had two grandchildren in university she wanted to help, and her sister was angling for a loan for a small business. She knew her late husband had had some investments, but she wasnt sure what they were in and whether they were doing well or not. Mostly, she was worried about the economy and what that would mean to the nest egg she knew her husband had socked away somewhere. My alarm bells went off. I thought about my own wife, Linda. Would she know how to manage our finances if something happened to me? I doubted it.

This woman in Yorkville was far from destitute. She had the means, but had never learned anything about how to manage her own personal finances. She was scared and she was alone.

Tears welled in her eyes. If shed been pitching me on Dragons Den, I would have said, Pull yourself together. Your tears dont add any value. In business, money and emotions dont mix. But this woman wasnt asking me for money. She wasnt pitching me an idea. She was asking me for help. And I wanted to give it to her.

I tried to gather a bit more information. How are you getting your money now? I asked.

I get cheques from the government, and my husbands money arrives automatically to our account once a month. Im just not sure where its coming from. I use my bank card to make withdrawals from our accounts. Im so embarrassed by how little I know about our finances.

Have you talked to your bank manager?

Yes, but I dont really understand what hes telling me. Ive never been very good with money, which is why my husband used to take care of things.

And why are you asking me for help?

I guess because I trust you to tell me the truth.

I leaned towards her as though delivering the most important information shed ever receive. I want you to listen to me very carefully, I said. Until you know exactly where you stand financially, until you have a crystal-clear picture of your money situationyour flow in and out, your expenses, your savings, your investments, everything, and you consult an expertyou are to give away NO money. None. Not to your grandchildren, not to your siblings. Not a dime. Do you understand?

She nodded, still fighting back tears. This woman needed someone reliable to go through her accounts and write up an intuitive financial plan that would be simple for her to follow and guarantee that her money would outlast her. I gave her my card and the number of a good friend of mine who was a rock-solid financial advisor, and I told her to stay in touch.

As I walked away, I wasnt feeling very good about the exchange. I shuddered to think how easily it can all go wrong for someone who has no money sense, even when they have money. One tough market correction, one bad loan, one ill-advised investment, and all that money could disappear. Who would take care of this woman then?

The inspiration for this book came from that moment, a casual conversation on a street corner with someone in need asking me for help with their personal finances. Though people have always sought out my investment advice, Ive never billed myself as a personal-finance expert. But I am a money expert. For that reason, this book is going to be different from other books that offer financial advice. This book isnt just about money, but about your relationship with money. Ive always believed that if you improve how you relate to money, youll have more of it. Im going to show why thats true, and how to build financial stability by thinking differently about your finances.

My goal is simple: to offer practical ways for you to save money, invest better and cut your costsat every stage in life, from cradle to grave. Ill teach you how to raise money-savvy kids who dont spend too much or get into debt too early. Ill show you how young people can graduate with less debt and in better shape to pay off student loans. Ill show you how to talk to your loved ones about money and how to make sure your romantic relationships, marriages and partnerships dont get overshadowed by debt, overspending and financial concerns. Ill help you avoid common mistakes people make with credit and credit cards, when buying a house or a car, or when blowing a fortune on luxury goods that dont appreciate over time. But most of all, Ill guide you through all of lifes stages and decision points, leading you to a place in your twilight years where money and freedom result in comfort and security. Are you ready to embark on this journey with me? Then lets get started.