When did our news reporters and media specialists become astute financial planners? I wonder …
Earlier this week while watching The Today Show during a workout on the treadmill, I was amused by the reporters and guests offering financial suggestions (close to recommendations) to a recent victim. The show broadcast the horrific situation with Karen Klein, the bus monitor who was bullied by the teenagers riding the bus. While this incident may be more compelling, I bring your attention to another aspect of this event. Once this video went viral, donations to Karen accumulated to $650,000 (as of this writing). The gifts initiated because in the course of sharing this story, we learned that Karen earns $15,000 a year and has not taken a vacation in years. So when the reporters – who I am certain meant well – began to give advice about how the funds are handled (begin a charitable foundation, pay off debts, go on a vacation, give the funds away) I wondered in amazement. Everyone has an opinion, even when the whole picture is not clear. As a financial professional, the first order of priorities is to attend to the needs of the person involved; in this case, Karen Klein.
While $650,000 may seem like a lot of money, and it is, if these funds were given to potentially improve Karen’s life by encouraging her to take a vacation. It is ONLY with direct connection to Karen, and her financial situation, that any prudent and wise suggestions can be offered for her benefit. What kind of vacation might be a starter? Other actions might be to pay off debt, plan for balanced leisure opportunities over her life span versus one vacation, secure an emergency fund and longer term retirement fund, update a will, to name a few. But for Today Show Guests with little expertise to toss out ideas about what should happen with these gifts without witnessing the whole of Karen, there is potential harm in her being able to consciously plan and follow through on this beautiful generosity.
How often do you have an opinion about something out of your expertise and readily express it? How often do you take advice from someone who doesn’t possess the competency and larger view to render a valuable opinion? What is the wisest and compassionate way to step into a conversation riddled with hidden drama? All of these questions are portals into a much longer conversation, and… I still wonder …