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Cue Bryan Adams: “It was the summer of ’69”.
Dad was a journalist. Mum was a nurse. They’d been married a year. Awww, shucks. Super special times for them, I’m guessing, given I wasn’t on the scene yet.
It was a time of “Free love”, the Vietnam War and … a nickel mining boom.
My parents (to be) were early 20s. Their life savings amounted to $1000.
Dad got a newsroom tip. Some tinpot miner had found nickel. The next “sure thing”. He asked mum if he could throw their savings at it. The shares were under $2. Mum screamed “NO!” and threatened divorce should he not listen.
The company was “Poseidon” – Australia’s legendary boom stock. Poseidon’s shares went above $280. Their $1000 would have got to about $140,000. Now Dad was considering serving papers.
It ended happily. Poseidon tanked. It went from zero to superhero to bombed-out crater, all in six months. No point getting upset in either direction.
And, having just done the math, I was created at Poseidon’s peak – they can’t have been too angry at each other.
The lessons? Two heads are better than one. Use balancing forces where possible. Neither of my parents claimed financial genius. As a result, all major decisions needed discussion and joint approval. And I watched this happen after I was born.
Dad’s inate willingness to punt was soothed by mum’s irrational conservatism. It probably stopped dad taking silly risks and pushed mum to take a few.
Sure, they didn’t make $140,000. But they got me. And they reckon I’m priceless.
Bruce Brammall is the principal adviser with Castellan Financial Consulting (www.castellanfinancial.com.au) and author of Debt Man Walking.