Author Topic: From $87 mill to $5mill in debt!  (Read 16090 times)

Devon97

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Re: From $87 mill to $5mill in debt!
« Reply #50 on: April 12, 2010, 07:43:40 AM »
The 2% (and lower) rate that you referenced is what banks pay poor people with 'savings accounts'. 

For someone who's ready to invest, 6% yoy is a very conservative estimate, so that would be roughly $300K/year, every year. 

Spend wisely and that principle will grow. 



LOL I would hardy call a CD something for poor people.

 What funds guarentee a 6% or higher return with Absolutely no risk?

We aren't talking about spending wisely but rather living extravagantly.

You're not exactly the black Warren Buffet ya know lol

Devon97

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Re: From $87 mill to $5mill in debt!
« Reply #51 on: April 12, 2010, 07:47:14 AM »
You are quite a bit off their son.  Any Savings account will pay you at least a compound interest rate of 4%

That is $40,000+ a year for just a million at that interest rate

Tines 5 equals $200,000+ a year from interest alone and with that kind of deposit you would receive a nice prime rate of 5% or more

Am I missing something here? I think the arguement was could someone live extravagantly off of the interest.

Annual income of 200K would hardly be considered "middle class" in NYC.

Keith, I think you and I have differing views as to what an "extravagant" lifestyle really is.

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Re: From $87 mill to $5mill in debt!
« Reply #52 on: April 12, 2010, 08:07:14 AM »
QFT. I could easily live off 5 mil as my in-laws live a nice lifestyle off 2.5 mil invested correctly. These guys are complete idiots for blowing through that much money that quickly. Investing in Detroit wtf?

Here is the problem with guys like this guy who lost his money.  Most black pro athletes come into a huge amount of money when all their lives they have had nothing,.  One of the biggest things they have wanted to do their whole lives is take care of their mom (parents).  So buying a house for them is one of the first things they do.  Then all the parasitic relatives come into play.  Then the punk childhood friends all want something.  Of course they have to have a fancy car and their house.  First off $10 million does not go far.  whatever amount goes to taxes.  they wouldn't have got that money without an agent (in most cases) who gets 10% off the top.  In some cases a quick talking manager comes into play and they get 10% to 15% off the top.  Some guys have a PR person who usually works on a retainer or monthly set salary.  You have to pay for everyone in your "entourage" expenses.  In most cases, their parents home and their first home is paid in cash.  They may be able to use their contract amount as collateral but not that often unless they are someone very established.  A bank is going to want to be the first in line to get paid in case something goes sour with the person or contract.  Not many contracts are "guaranteed".  In some cases they are.  

This happens to white people too.  Just in most cases it is black people because their are more of them in professional team sports and their economical upbringing is a little less.  This is why if you are an athlete who appears to be destined for professional sports you really should (starting in high school) really take and learn financial related classes.  Learn to invest your money yourself.  DO NOT trust anyone,  In most cases an athlete trust his agent or manager more than anyone.  And he should, but in some cases these guys are scumbags and take chances with your money that they shouldn't.  They are the ones who make suggestions or investment ideas.  Hire a real investment person.  Put a few million in mutual funds.  I have a friend who makes $50,000 a month simply from mutual funds.  The guy sold his house here for $7 million and ended up buying a penthouse at Turnberry.  

These guys just don't know what to do.
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noworries

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Re: From $87 mill to $5mill in debt!
« Reply #53 on: April 12, 2010, 08:12:33 AM »
Am I missing something here? I think the arguement was could someone live extravagantly off of the interest.

Annual income of 200K would hardly be considered "middle class" in NYC.

Keith, I think you and I have differing views as to what an "extravagant" lifestyle really is.

I had no idea we were talking about living in New York.  Maybe extravagant means something different to me.  I grew up in a pretty expensive area and have lived in one of the nicest places in the country pretty damm well.   Never even been to New York but I do know it is very expensive to live there.  But, if you have a house that is paid for and the car is paid for.  Those are tow huge expenses.  I know I could live pon $200,000 a year for food and fun.  Well at least food.  I may have to get a night job for any other stuff
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Tre

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Re: From $87 mill to $5mill in debt!
« Reply #54 on: April 12, 2010, 09:03:55 AM »
LOL I would hardy call a CD something for poor people.

What funds guarantee a 6% or higher return with Absolutely no risk?

We aren't talking about spending wisely but rather living extravagantly.

You're not exactly the black Warren Buffet ya know lol

I wouldn't say that there's 'no risk', but there are many mutual funds that are consistently returning 6% *after* fees.  

Rich people don't save, they invest, so if poor people seriously want to build wealth, they need to roll their CDs into mutual funds. Sure, the funds aren't FDIC insured, but who cares?  Just look at the 50-year history of mutual fund returns.  

I think I live pretty well, but I don't live 'stupid'.  I stay within my means.  I own one vehicle that I bought used.  The home I purchased was a bank foreclosure.  If I want to take the family out on the water, we can rent a boat or ski-doo.  No need to buy something that's only going to be used twice a year.  My daughter and I own (snow) skis and have season passes to one of the local mountains, but we got all that stuff at *deep* 50-70% discounts and we ski 10-15 times/year.  Baby mama skis once a year, so I got her equipment used for $20.  We don't wear fancy clothes, but we do spend money on travel...experiences that will benefit our child for a lifetime.  We live in a great neighborhood.  

There's a reason why no one teaches poor people about compound interest, but it really is an amazing thing.  



powermaxx9

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Re: From $87 mill to $5mill in debt!
« Reply #55 on: April 12, 2010, 09:08:10 AM »
i thnk its good for the NBA.  you see guys with that much money, you want to buy the nba licensed gear to be like them. 

if they all drove toyotas and wore eeveryday clothes, there wouldnt be any star power.

Natural Man

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Re: From $87 mill to $5mill in debt!
« Reply #56 on: April 12, 2010, 09:20:07 AM »
It looks like most of you didn't read the article.  he didn't squander or buy a bunch of shit wiht his money.  He invested it in his home town of Detroit by redeveloping parts of the city and providing jobs for hundreds of people and tryimnh to make the city's economical situation better. The economy was so bad and the real estate market slipped that all that effort went to shit.  So unlike some of the other idiots who have lost millions of dollars by buying their friends houses, and cars and jewelry at least thsi guy tried to help others.  The only thing he should get shit for is trying to help others.
that what some idiot representing him said, doesnt mean it's the truth, like anyone would spend the biggest of his fortune revitalisating a dump...please, dont be a bigger naive idiot than you alrdy are.

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Re: From $87 mill to $5mill in debt!
« Reply #57 on: April 12, 2010, 09:40:03 AM »
that what some idiot representing him said, doesnt mean it's the truth, like anyone would spend the biggest of his fortune revitalisating a dump...please, dont be a bigger naive idiot than you alrdy are.

Well shit sure am glad you know the real story,.  Had no idea you were "in the know".  Please enlighten us and tell us the real truth.  You should have come forward at the beginning.  How long were you his agent or lawyer.  Please give us the truth ::)
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Option D

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Re: From $87 mill to $5mill in debt!
« Reply #58 on: April 12, 2010, 09:45:01 AM »
no doubt hes not like the other dumb negros BUT he should have kept more then 1 mil in "safe" money..

So what do you say about Daly and Cage cha cha?

Thin Lizzy

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Re: From $87 mill to $5mill in debt!
« Reply #59 on: April 12, 2010, 09:53:21 AM »
This is the definitive article on the subject. Keith pretty much has is right. It's a combination of factors, divorce and trusting family and friends being the two biggest.


http://sportsillustrated.cnn.com/vault/article/magazine/MAG1153364/index.htm


How (and Why) Athletes Go Broke
Recession or no recession, many NFL, NBA and Major League Baseball players have a penchant for losing most or all of their money. It doesn't matter how much they make. And the ways they blow it are strikingly similar
PABLO S. TORRE

• By the time they have been retired for two years, 78% of former NFL players have gone bankrupt or are under financial stress because of joblessness or divorce.

• Within five years of retirement, an estimated 60% of former NBA players are broke.

G_Thang

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Re: From $87 mill to $5mill in debt!
« Reply #60 on: April 12, 2010, 10:01:04 AM »
look u girls love to call it a black thing but even a successful white man with a construction career can go ape s##t when 9 figures hits his bank acct.







It seemed as though Jack Whittaker's dreams had come true on Christmas Day in 2002, when he won what was then the largest undivided lottery prize in U.S. history. Instead, the years since he won $324.9 million – which he took in a lump sum of $113 million after taxes – have mostly been a nightmare.

Whittaker's saga took a new turn this week, as an arrest warrant was issued for a Kentucky man who allegedly emptied one of Whittaker's bank accounts by cashing counterfeit versions of his business checks, according to the Associated Press.

The suspect, Toby Nelson, 31, of Greenup, Ky., faces charges of false pretenses, counterfeiting and forgery, police said. Nelson allegedly stole some $49,070 from Whittaker.

Nelson remains at large. A company owned by Whittaker has also filed suit against City National bank for cashing the phony checks. City National says it was not negligible in doing so.

Whittaker says the theft leaves him unable to pay the settlement in a recent case in which he was accused of assaulting a woman at a casino in West Virginia.

In 2002, Whittaker, then 55 and a wealthy contractor, bought a Powerball ticket at the C&L Super Serve in Hurricane, W. Va. that won him his millions. Though he started out by donating some of his money to charity, which helped renovate a Little League park and buy playground equipment, it was mostly downhill from there.

In the years since, Whittaker has been sued for bouncing checks in at Atlantic City, N.J., casinos, arrested on drunken driving charges, ordered into rehab and repeatedly burglarized. His granddaughter died of a drug overdose in 2005, and he was sued by the father of an 18-year-old boy, a friend of his granddaughter's, who also overdosed and was found dead in Whittaker's house.

Those problems overshadowed his charitable contributions, which also included funding three churches.



i'd be on suicide watch if i jacked off this type of dough.

daly 70M gambling
whit 113M
cage 120M
pippen 50M or somthing
coleman 60M?
Billy Jole 70M  but still sell record n concerts so he ok
Antione Walker 112M

damn!


noworries

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Re: From $87 mill to $5mill in debt!
« Reply #61 on: April 12, 2010, 10:14:46 AM »
This is the definitive article on the subject. Keith pretty much has is right. It's a combination of factors, divorce and trusting family and friends being the two biggest.


http://sportsillustrated.cnn.com/vault/article/magazine/MAG1153364/index.htm


How (and Why) Athletes Go Broke
Recession or no recession, many NFL, NBA and Major League Baseball players have a penchant for losing most or all of their money. It doesn't matter how much they make. And the ways they blow it are strikingly similar
PABLO S. TORRE

• By the time they have been retired for two years, 78% of former NFL players have gone bankrupt or are under financial stress because of joblessness or divorce.

• Within five years of retirement, an estimated 60% of former NBA players are broke.

What really determines on how alot of these guys end up is how they were brought up.  simple as that.  I know many pro athletes that are as rich as they are now as they were when they played.  I know even more that are broke or near broke.  Trust is a major thing when you get an influx of huge money especially when you are not used to it.  If your parents are responsible and you grow up with them paying all the bills, providing for you without any financial problems you truly learn to apply this in your life.  You really don't need to go out and spend a zillion dollars on all your friends or family.  My first manager took me for quite a bit of money.  My girlfriend at the time told me from day one this guy was a piece of shit.  I had another friend whose agent had him investing iun the dumbest shit and he lost the bulk of his money after just a couple years.  I didn't invest my money which was my big problem.  My few times of wanting to invest I was talked out of by my attorney.  If had invested in what I wanted to at the time I would have made millions of dollars.  But I didn't.  It isn't the actual dollars I lost that I regret the most but the potential dollars I lost from listening to others.  

My uncle (the one that is dead now) gave me the best advice ever when I was in 6th grade or so.  Invest, invest and invest more in real estate.  Start of witjh a small income property like a duplex or triplex.  Then get an apartment building.  Then buy a retail center then get into development and build multi-family, then retail.  You can't lose (well maybe right now you might) but back in the 70's and 80's this was the way to go.
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JOCKTHEGLIDE

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Re: From $87 mill to $5mill in debt!
« Reply #62 on: April 12, 2010, 10:21:10 AM »
you fellas need to listen to nowrries he has given good advice,,,minus the real estate (for now),,,he knows it very well been through hell and has come back
What really determines on how alot of these guys end up is how they were brought up.  simple as that.  I know many pro athletes that are as rich as they are now as they were when they played.  I know even more that are broke or near broke.  Trust is a major thing when you get an influx of huge money especially when you are not used to it.  If your parents are responsible and you grow up with them paying all the bills, providing for you without any financial problems you truly learn to apply this in your life.  You really don't need to go out and spend a zillion dollars on all your friends or family.  My first manager took me for quite a bit of money.  My girlfriend at the time told me from day one this guy was a piece of shit.  I had another friend whose agent had him investing iun the dumbest shit and he lost the bulk of his money after just a couple years.  I didn't invest my money which was my big problem.  My few times of wanting to invest I was talked out of by my attorney.  If had invested in what I wanted to at the time I would have made millions of dollars.  But I didn't.  It isn't the actual dollars I lost that I regret the most but the potential dollars I lost from listening to others.  

My uncle (the one that is dead now) gave me the best advice ever when I was in 6th grade or so.  Invest, invest and invest more in real estate.  Start of witjh a small income property like a duplex or triplex.  Then get an apartment building.  Then buy a retail center then get into development and build multi-family, then retail.  You can't lose (well maybe right now you might) but back in the 70's and 80's this was the way to go.

Tre

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Re: From $87 mill to $5mill in debt!
« Reply #63 on: April 12, 2010, 10:21:48 AM »
My uncle (the one that is dead now) gave me the best advice ever when I was in 6th grade or so.  Invest, invest and invest more in real estate.  Start of witjh a small income property like a duplex or triplex.  Then get an apartment building.  Then buy a retail center then get into development and build multi-family, then retail.  You can't lose (well maybe right now you might) but back in the 70's and 80's this was the way to go.

That's still the best advice, because they aren't making any more land...well, except in Dubai, that is.  


Thin Lizzy

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Re: From $87 mill to $5mill in debt!
« Reply #64 on: April 12, 2010, 10:36:34 AM »
That's still the best advice, because they aren't making any more land...well, except in Dubai, that is.  



Every investment has its plusses and minuses and real estate is no exception.

Real estate has to be maintained.

If you rent out your property, being a landlord is a pain in the ass, namely dealing with deadbeat tenants.

It's also not liquid. In other words, you can't sell it immediately.

Plus, you never know exactly how much it's worth.

noworries

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Re: From $87 mill to $5mill in debt!
« Reply #65 on: April 12, 2010, 11:00:33 AM »
I made a huge mistake when I was younger by not following my uncle's advice and parents.  My mom was brilliant when it came to banking and money matters.  She had her real estate license but didn't really use it except to find deals.  My uncle was a broker since 1961 and in the 60's and 70's bought mega amounts of real estate in LA and in the 80's started developing all over California and Colorado.   He also liked to buy companies and resell them.  He owned a huge lumber company, a electronics company and several other diverse companies.  He definitely didn't have all his eggs in one basket.  Later as he got older and just spent money he had these ladies that all they did was buy shit from catalogs for him.  He became kind of weird that way.  He liked to compete with this other real estate guy in LA to see who could buy the most stuff.  This guy bought himself a big yacht.  So my uncle went out and bought the SS Catalina.  Any older guy from So. Cal would know of this ship.  330' long.  He was my hero.  He had a great time in life but died way to early.  And he died without a will. I still have no idea what happened with all that shit.  Anyway, I have made way more mistakes financially than good ones.  But, I am still happy.  Of course I am pretty sure I would be more happy with more money.
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Tre

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Re: From $87 mill to $5mill in debt!
« Reply #66 on: April 12, 2010, 11:20:25 AM »
I made a huge mistake when I was younger by not following my uncle's advice and parents.  My mom was brilliant when it came to banking and money matters.  She had her real estate license but didn't really use it except to find deals.  My uncle was a broker since 1961 and in the 60's and 70's bought mega amounts of real estate in LA and in the 80's started developing all over California and Colorado.   He also liked to buy companies and resell them.  He owned a huge lumber company, a electronics company and several other diverse companies.  He definitely didn't have all his eggs in one basket.  Later as he got older and just spent money he had these ladies that all they did was buy shit from catalogs for him.  He became kind of weird that way.  He liked to compete with this other real estate guy in LA to see who could buy the most stuff.  This guy bought himself a big yacht.  So my uncle went out and bought the SS Catalina.  Any older guy from So. Cal would know of this ship.  330' long.  He was my hero.  He had a great time in life but died way to early.  And he died without a will. I still have no idea what happened with all that shit.  Anyway, I have made way more mistakes financially than good ones.  But, I am still happy.  Of course I am pretty sure I would be more happy with more money.

Money can buy happiness, but one of the great lies perpetuated by the wealthy upon the poor is that one cannot buy happiness with money.  As a result, poor people - in general - strive for less.



Mr Nobody

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Re: From $87 mill to $5mill in debt!
« Reply #67 on: April 12, 2010, 11:54:11 AM »
Money can buy happiness, but one of the great lies perpetuated by the wealthy upon the poor is that one cannot buy happiness with money.  As a result, poor people - in general - strive for less.



Nice post.

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Re: From $87 mill to $5mill in debt!
« Reply #68 on: April 12, 2010, 12:08:41 PM »
guys, he didn't pay $45 million in taxes, probably more like $5-$10 million.  These lawyers will find every loophole to ensure the rich don't pay taxes like the rest of us do.  Of course the CPA and lawyer fee was probably in the millions of dollars.

Palpatine Q

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Re: From $87 mill to $5mill in debt!
« Reply #69 on: April 12, 2010, 12:24:44 PM »
Am I missing something here? I think the arguement was could someone live extravagantly off of the interest.

Annual income of 200K would hardly be considered "middle class" in NYC.

Keith, I think you and I have differing views as to what an "extravagant" lifestyle really is.

average median income for a family in New York is 60k

200k is barely middle class.....LOL, another billionaire in our midst  ::)

G_Thang

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Re: From $87 mill to $5mill in debt!
« Reply #70 on: April 12, 2010, 12:24:44 PM »
Money can buy happiness, but one of the great lies perpetuated by the wealthy upon the poor is that one cannot buy happiness with money.  As a result, poor people - in general - strive for less.




so true.  it's not about happiness, about buying your life back in which they have you doing their work while they sell you the con that it doesnt by happiness so keep on trucking those 40-60hrs a week with 2 days off. 

 

Natural Man

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Re: From $87 mill to $5mill in debt!
« Reply #71 on: April 12, 2010, 01:30:48 PM »
there are a lot of examples of rich parents who gave money to their kids without teaching EM HOW TO MANAGE IT... and saw their own progeniture ruin everything they spent their whole life building...

affeman

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Re: From $87 mill to $5mill in debt!
« Reply #72 on: April 12, 2010, 01:32:35 PM »
there are a lot of examples of rich parents who gave money to their kids without teaching EM HOW TO MANAGE IT... and saw their own progeniture ruin everything they whole life building...

Give us some examples.

HTexan

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Re: From $87 mill to $5mill in debt!
« Reply #73 on: April 12, 2010, 01:52:01 PM »
Money can buy happiness, but one of the great lies perpetuated by the wealthy upon the poor is that one cannot buy happiness with money.  As a result, poor people - in general - strive for less.



No, some people are greedy and will never be happy. True for money, fame, attention, love, etc.
A

Devon97

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Re: From $87 mill to $5mill in debt!
« Reply #74 on: April 12, 2010, 01:57:18 PM »
average median income for a family in New York is 60k

200k is barely middle class.....LOL, another billionaire in our midst  ::)

LOL ok "Groink" lets see you try to raise your family in NYC with a mere 60k/year.

You will be living like a pauper!