I have no idea what kind of investments Brunell made, how he decided on making them, etc etc etc.

I do know that entrepreneurs often lose a lot of dough. I also know that certain kinds of investment take lots of dough and are still risky. I also know that risk takers don't stop being risk takers just because they find themselves endowed with a lot more money than they had before.

I know that the line between an "entrepreneur" and a 'lunatic risk taker" can often be perilously thin, especially for those of us who know neither the particular person or investments involved.

And I know that without people willing to take risks that others consider lunatic, the great and unprecedented wealth of the USA and other "rich" countries would be impossible.

So with respect to Mark Brunell, the only thing I can say for sure is: Boy, I'm glad I'm not him right now.

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Anyone who has scoffed and said he should have put his money in a savings account and left it there to rot clearly does not know the value of money, and that is probably why you don't have much. Even in the best of times, savings accounts barely pay higher than inflation, and currently the average savings account pays a whopping 0.34% interest, while our inflation rate was over 6% last year. Anyone who trusts in a savings account is not only NOT being responsible, he is in fact misappropriating his money and being a poor steward, because in real dollars, his balance is declining over time. Obviously, a savings account has value as a ready source of cash in emergencies (though many checking accounts actually pay more than money market accounts these days), but they are no proper place to safeguard the majority or even the plurality of your personal fortunes.

Even Jesus, in the parable of the good stewards, said the very least you could do was put your money in a bank. He praised the people who invested the money in money-earning ventures, which are by definition risky.

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For the layman, Fisher equations, real interest rates and diversifiable risk are terms which are far and above the level of financial comprehension that most people possess. It is a far more pertinent strategy to invest in long term maturity bonds and savings than to recommend investing in risky investments which yield positive real returns.

Yes, you're losing in terms of real interest. But at least the nominal is increasing, which is far more than what Brunell can say about his investments. If you don't know how to invest, it's still better to lose little than to potentially lose a LOT.

So, yes, I do in fact understand the value of money, and yes, I would continue to recommend a savings account for the majority of people. The truth of the matter is self-education on finance is the best strategy. But in the meantime you must park your cash somewhere. You could opt to pay a financial planner to do it for you, or you can park it in a savings or long term bond. I would recommend this 100 times out of 100 than to say "go ahead and take a shot at some shares/investment properties/forex/commodities/derivates".

You're right in that we don't know what Brunell has invested in, so he could have made the most informed choice he could at the time and the market simply moved against him. But especially as this a discussion topic that can be read by many, it would be foolish to espouse some risky, profit making alternative.

Those that know better will understand how to better utilise money, such as yourself non. But most do not, and to recommend a strategy of which risk is neither understood nor contemplated is dangerous.

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I stated explicitly that I don't have a problem with savings accounts (though I do have a problem with plunking the majority of one's fortune in there when there are equally safe alternatives that pay more, like the new enhanced checking accounts). I was addressing specifically the condescending, scornful tone that several people took in this thread, who seemed to imply that they would have known better how to handle the funds that were lost. A man worth millions of dollars would be foolish not to seek a better-than-negative return on investment.

I'm going to hazard a guess that Brunell lost out on the real estate market. In the United States, 70% of millionaires make their money in real estate, but plenty of people lose everything in such ventures.

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Yes that's a good point, I should have clarified that when I mean savings account, I'm talking about the more well known debt instruments (like government bonds and term deposits) and all forms of deposit/savings accounts, not just a specific 'savings account'.

Though I would say that everyone should aim to improve their financial status, irrespective of their wealth. It's simply the case that the stakes are higher for millionaires but I don't think it's any less important to invest smartly. And just remember, a good investment need not always generate more money but could either mitigate risk through hedging or reduce the amount of loss one would otherwise suffer.

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File for bankruptcy and then go chase down your off shore account. Sweet plan Mark! Packer Nation is pulling for you as you work the grift in the system!

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It's not as easy as you think.

For one, it's like Rod Stewart said. When the money rolls in, EVERYONE is your friend. When the money stops, they all disappear. Then if it rolls in again, they all come back. The thing is, it may roll back again for rock stars. It won't roll back again for professional ballplayers. That's why Dan Marino's going so low as advertising weight loss supplements and Coach Dikta is telling the world he needs a certain drug to get a hard-on.

For another, they made money early in life. I made well over a million in the dot com days and it's mostly gone. I was young and stupid, but it sure was fun. Most of these guys got their paychecks in their 20s.

For yet another, the sharks will get you. Don King is infamous for destroying the financial health of boxers. These guys make millions and Don King somehow gets it all. Rocky V was based off of him.

For yet another, how many people in your family have financial issues? Well, now that it's known that Cheesey is a multi-millionaire football player, take a guess who's going to be called when your Uncle Jim is in foreclosure. Or Aunt Edna is going through a nasty divorce. Or your nephew needs an emergency operation and his parents don't have very good insurance. Or a friend you haven't seen since high school needs to get bailed out of jail for drunk driving.

Keep in mind, how many Americans have an entitlement mentality where they're entitled to YOUR money? Without even adding them up, looking at this economy, I'd say it's more than 50%.

And finally, Uncle Sam. I pay 40% tax on my income. California gets its share, the US gets an even bigger share. That's not including sales tax, stamp taxes, booze tax, parking tickets, gas tax, vehicle tax, tax on clothes, books, movie rentals, etc. Let's say you win the lottery. If you win $10 million, in reality, you get $6 million. But your relatives all think you got $10 million to bail them out of their problems.

The way to keep your money:
1) Say "no" to everyone,
2) or just disappear

EDIT: Trippster - I wish I knew you in my 20s. I'd be retired today.

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Engineer, I take issue with your long term bond being pertinent. Maybe in Australia it is a good plan but here in the US? I think not.

Long term bonds are paying very little. Fed interest rate is at a historical low. Only way you will like recoup your par value is if you hold to maturity. (30 yrs)

As interest rates rise (only direction they can go here in U.S.) bond values decline. This is particularly true of long term bonds. They are most affected by interest rates.

Wanna get crushed financially? go ahead and put your money in long term bonds for ten years. Have the tissues ready when it is time to sell them on the secondary market.

There is no place you can have your money without risk, nowhere. Inflation risk, investment risk, interest risk, it's all there.

What do you do? Diversify. Diversify, diversify. Never have all your eggs in one basket. Same farm maybe.....never same basket.

And as far as paying a financial advisor for advice, trust me, from a risk standpoint, I am worth every penny. Unless it is your full time job to manage you money and you have the experience/education to do it, you are creating your biggest risk.....yourself. Trust me, I see it all the time.

You can fix your own car or have a qualified mechanic fix it. For the cost, is it worth it to take on the risk of you making a mistake? At least with the mechanic you have some recourse.

Learning the financial world with your own money can be really expensive... ask Lenny Dykstra.

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Definitely agree with that. I'd generally also agree with diversification but I think, unless you enter a managed fund or hire a financial planner, best to stay away unless you know what you're doing (which goes back to your point above). Though I think we'd all agree that the financial advice here is all general, and anybody seriously contemplating an investment should seek professional services to tailor a unique strategy for their circumstances.

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How much do you charge Tripp?

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