Monica asked that we meet to see if I could help to reduce the differences between them. When the time came, she started the conversation by saying that Richard wasnt saving any money at all. They hadnt started implementing. She said he spent a good deal of time buy- ing and selling stocks. He seemed to be influenced by the weekly ups and downs of the market. At least temporarily, however, he had raised the quality of the stocks he was buying.
Richard seemed a little annoyed and said that Monica never wanted to sell any securities. She almost always told him to wait. She said the shares would come back. When I asked what money meant to them, Richard said an opportunity to gamble and Monica replied a chance to lose what youve accumulated. As far as their long-term goals were concerned, Richard said he had no real long-term goals. The future was too fickle. He said who knew what fate had in store for them. Monicas goal was to feel secure. I had the feeling that her remark was in response to Richards behavior. She wouldnt allow herself to think of anything beyond security until Richards activities could be controlled.
Case Application Questions
1. What should be done about Richards spending?
2. What kind of investment behavior is Richard demonstrating?What can be done about it? 3. What is Monicas investment behavior called? How can it be helped?
4. Contrast their two views of money. Do you have any recommendations?
5. How can Monicas fears be dealt with?
