No One Ever Told Us That: Money and Life Lessons for Young Adults

CHAPTER THIRTY-FOUR

PICKING SOMEONE TO WATCH OVER YOUR MONEY

A man from Connecticut once interviewed me about managing money for him. He really asked me only one question. “This is key,” he said. “Why are manhole covers round?” I thought about this, quickly thinking, “I have no idea” and “Why is he asking me this?”

“I have no idea,” I said.

“Aha,” he said triumphantly. “There are actually two right answers. One is: manhole covers are round because if removed they can never fall into the hole. Number two: they're heavy and cumbersome, tough to carry for one person. But they can be rolled because they're round.” He was an executive in a manufacturing company, making machine tool parts. “What I asked you was one of the questions Microsoft asks prospective employees. It tests their reactions to real life, evidently.”

“I don't think we're going to be a good fit,” I told him.

“Well,” he said, “I kinda agree. You couldn't answer the question.”

“The question and the answer,” I said, “has absolutely nothing to do with managing money. Nothing.”

We agreed to disagree. But after that I was determined to tell anyone who came to see me for the first time the really important questions you should ask anyone who wants to manage your money.

First of all, “What do you charge?” is the wrong question as well. Of course, you should ask what the manager charges. But down the line of importance. All reputable money managers are pretty close in their fee structure. Competition tends to ensure that. We ...