Financial education from Michael Jackson!
July 12, 2009 by Madhav Shivpuri
Filed under Featured, Finance, Insurance
Millions across the world were shocked when MJ died on 25-Jun-2009. A few days later his “will” showed up. Something really caught my attention and instantly I cheered in respect to MJ, not for his singing talents, but for something in that will!
Michael Jackson, amid all the scandals and controversies about his private life, health and music, did something which is admirable. And that is, he created a trust fund for his children. He left 200 unpublished songs for his children. What that will mean? The revenues and royalties, and all sorts of earnings from those 200 songs will go to the children, and cannot be touched by the creditors. And its estimated a cool $200 million!
There is intense scrutiny around MJ’s finances. His assets and liabilities are under debate. There is a total mystery over his finances, even including who is the mother of his children. However, what is crystal clear is the trust fund he has created for his children, and that no creditor can ever get their finger nails on that piece of MJ’s legacy.
Can you just believe that? Take a little time and think about it.
This is what is called financial intelligence. This is what has been recommended by financial advisors over time. This is what Robert Kiyosaki in his book “Rich Dad Poor Dad” calls “creating a wall around your family so that nothing can get through”.
That is the reason I immediately recognized what MJ had done for his children. Despite all the troubles and confusion he left them in, he made sure that their education and life style will not be financially burdened.
This is a page of Michael Jackson’s life that all parents should take very seriously and plan for their family, in particular, children’s welfare. Take the right insurance. Consider the right premium, based on the potential costs and factor in inflation. Set up the mutual funds in their names early on. Invest in real estate. What ever it takes, make sure they are well cared for in case of any sudden situation in the family. Live happily and with peace of mind knowing that you children are well taken care of.
Hats off to Michael Jackson.
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There is a good lesson in this for parents. Having said that, I do think that in India, unlike abroad, parents & children don’t really ever ‘leave’ one another. They remain, even physically together. As a result, even if a couple (of our before our parents’ generation) hasn’t taken out an insurance policy, in whatever form or fashion, the wealth they create (in terms of bonds, estate, jewelry etc), invariably goes to the children.
Where perhaps this is more pertinent, is young couples. People who have recently gotten married, are working professionals (not business people), who may not be too keen to save (not having the necessary foresight), and tend to be swayed by material purchases and a certain lifestyle they seek, rather than saving for the kids or for a rainy day.
Thanks for your comments Kartik. Yes, I think it is important to first make an habit of saving – the form, duration and amounts and secondary.
If we speak specifically about insurance, premium (periodical payments) amount is always lower when the covered person is young. So it pays to start early and actually should be a motivation in itself to take action, however like you say we all get involved with daily worries of “Roti, Kapda aur Makaan” and let these things slide. Any thoughts on how to encourage one’s family and friends to start taking hold of their financial future?