As the youngest of six children raised by a single mother, Mellody Hobson says money was always scarce in her family's household. Today, money is Mellody's business. Gayle talks with Mellody, the president of investment management firm Ariel Capital Management and financial contributor for Good Morning America, about advice women can take that will help them invest wisely and make money.
Through her segments on Good Morning America, Mellody says she tries to help everyday people understand how to manage and make money. She says women often have difficulties when it comes to investing because they don't like to take risks with their money. "A woman is industrious and she will do whatever is takes for her children, so there is a sense of conservatism around that of not wanting to go out too far on the risk spectrum," she says.
Mellody says you shouldn't be afraid of hiring a financial adviser to help you make decisions about investing. "If you don't want to pick stocks yourself, there is nothing wrong with that," she says. "You can hire mutual fund managers who can do a really excellent job for you as stewards of your money." At the same time, it's important to feel comfortable with your financial adviser before handing over your hard-earned money, Mellody says. "If they can't answer questions in plain speak and [unless] they never tire of my questions, then these are not people I want to work with," she says. "Because making money is hard and losing it is easy."
Published on August 22, 2007