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Sidewalk How long would 80-Million dollars last YOU?

Discussion in 'The Sidewalk' started by lightning, Oct 28, 2009.

  1. lightning
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    lightning 70 kph FASTLANE INSIDER Read The Millionaire Fastlane Speedway Pass

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    Great article about Former Celtics Star Antoine Walker, who over a 12-year career, collected between $60-$80 MILLION DOLLARS (yes, after taxes) for his contract and several endorsements. Years later, he is 4-million dollars in the whole and being pursued by creditors, as well as facing felony check charges.

    Former Celtics star Antoine Walker is broke and in debt - Ball Don't Lie - NBA - Yahoo! Sports

    This absolutely boggles my mind..because it is hard to fathom having that much money, and STILL living beyond your means!!!!

    Good excerpt from the article:

    "Now I know what you're thinking: How in the world does somebody — not named Montgomery Brewster — even begin to blow through that amount of money?

    The answer: fairly easily.

    "Walker liked to move in an outsized entourage; his mother estimates that, during his playing days, he was supporting 70 friends and family members in one way or another. And speaking of his mother, he built her a mansion in the Chicago suburbs, complete with an indoor pool, 10 bathrooms, and a full-size basketball court.

    Living at the Bishops Forest condominium complex in Waltham during the Celtics season, Walker turned the pavement surrounding his home into a virtual luxury car lot — two Bentleys, two Mercedes, a Range Rover, a Cadillac Escalade, a bright red Hummer. Often, the vehicles were tricked out with custom paint jobs, rims, and sound systems at considerable added expense. He also collected top-line watches — Rolexes and diamond-encrusted Cartiers."

    Condos, luxury cars, watches ... I guess that'll eventually force you into bankruptcy. Especially when you're not investing any money or collecting $200 with every fifth or sixth roll of the die.

    But Walker's lavish lifestyle wasn't all "me-me-me." He was also a generous friend and teammate who had custom suits made for coaches, routinely picked up giant team dinner tabs and, when there were funds to spare, gave to underprivileged youngsters. He was basically spending money like it was going out of style.

    And it did."


     
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  2. MJ DeMarco
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    MJ DeMarco Admin Staff Member FASTLANE INSIDER Read The Millionaire Fastlane Speedway Pass

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    Wow, another example about how more money doesn't solve financial illiteracy.
     
  3. MJ DeMarco
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    MJ DeMarco Admin Staff Member FASTLANE INSIDER Read The Millionaire Fastlane Speedway Pass

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    5% interest on $80M per year is $333,333 per month. He must have been spending $1M per month.
     
  4. maximus20895
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    maximus20895 40 kph Read The Millionaire Fastlane Speedway Pass

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    What would be a low risk investment that earns 5%? Not arguing, just asking.

    Is that 5% per year or month? In general, when you say interest is that annually?

    Regardless if it is or isn't wouldn't it be more each year since you could add the money you earned in interest to earn even more interest?
     
  5. Luke12321
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    Luke12321 50 kph FASTLANE INSIDER Read The Millionaire Fastlane Speedway Pass

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    You see many of these top players who end up broke that were bankrolling friends and family.

    I forget where I read it, but it was Baron Davis who pretty much said if his family members/friends came to him with a business idea then he would give it them money to get started if he knew they were serious. He wasn't going to just hand out free money though just because he had it to hand away.
     
  6. Pinnacle
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    Pinnacle 40 kph Read The Millionaire Fastlane

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    There is an epidemic scarcity of financial intelligence among athletes. Joe Montana got it right. I read in "Worth" magazine once that he started a private wealth firm for athletes. Any entertainers I cannot help with my company, I will be referring to Montana's firm.
     
  7. hakrjak
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    hakrjak 60 kph Read The Millionaire Fastlane Speedway Pass

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    This makes me sick... I could live off of $500k for the rest of my life. It's getting the $500k that has been the hard part.

    - Hakrjak
     
  8. JayKim
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    JayKim 90 kph Read The Millionaire Fastlane Speedway Pass

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    I bet most went to vegas.
     
  9. Phantom309
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    Phantom309 20 kph Read The Millionaire Fastlane

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    I don't know if I'm just one step above forrest gump, or maybe to simple, I'll even go a step further and say maybe even spring loaded to stupid, I just can't imagine amassing that much wealth and losing it. I'm sitting over here in aww at that story.
     
  10. maximus20895
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    maximus20895 40 kph Read The Millionaire Fastlane Speedway Pass

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    I still would like to know how you earn 5% with a relatively low risk.
     
  11. Bond
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    Bond 20 kph

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    "Near the cabaret bar, the deputies spotted the former Celtics all-star forward, chatting with a group of friends. Harrah’s security officials moved in, discreetly escorting him into an office where the deputies bound the 6-foot-9-inch, 245-pound Walker’s hands behind his back with two pairs of handcuffs and placed him under arrest on an outstanding warrant.

    The charge: writing 10 bad checks for casino markers totaling $1 million in Las Vegas."


    This just makes me sick.:nonod:
    Blowing that kind of money is... I just can't find words for this...:nonod:
     
  12. MJ DeMarco
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    MJ DeMarco Admin Staff Member FASTLANE INSIDER Read The Millionaire Fastlane Speedway Pass

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    Here are just a few investments I am -- these pay my mortgage and lifestyle.

    AFB
    FAX
    AWF

    I do monitor them closely and trade them when premiums rise or the price rise. In effect, I get paid to swing trade them.
     
  13. Chrono4001
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    Chrono4001 5 kph

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    Isn't Nicholas Cage on the same boat despite making 20 million a film? I am just astonished at how anyone can just blow their near hectomillionaire wealth. :confused:
     
  14. maximus20895
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    maximus20895 40 kph Read The Millionaire Fastlane Speedway Pass

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    Ah, thank you! I remembering saying that you put quit a bit of money in investments that earn 5% and I was always wondering where you put your money.

    Would you consider this passive income?
     
  15. eloise
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    eloise 10 kph

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    Reminds me of how not to be greedy and selfish, but on the same hand how not to let people manipulate money from me. Most people that keep asking you for money or other things will move on to the next person when you finally put your foot down and say NO MORE!! They stick to you like glue because you keep giving them what they want. I have been in this situation and finally had to put my foot down. Alot of people do not need money, they need advice on how to live within their means of fiancial support they receive. My husband and I have a ministry, and do help many people in need, no questions asked, but the repeat offenders always asking, we get to know very well and must finally put our foot down and say NO!! Yes, we feel a little guilty at first, but then we also have to realize that we cannot keep supporting their bad habits either. We can help with a fresh start and after that they are on their own. They have to stand on their own two feet, I can't do it for them!!
     
  16. Kdthelegend
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    Kdthelegend 5 kph

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    80 million would last me a lifetime. Because I would take for 40 million of it and invest it into franchises, businesses, and apartment buildings. That other fourty million I would buy me a few houses for about two million a piece. Then I would buy me about ten cars. Then I would live on 750,000 a year as money comes in from my new business investments. Any new investment I see that can make me money I would invest in it.
     
  17. Russ H
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    Russ H 160 kph Read The Millionaire Fastlane Speedway Pass

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    Max,

    Perhaps MJ is talking about 5% per month-- I'm reading it as 5% per year.

    There was a time (years) where you could invest in 30 year Treasuries and get 5% or more per year.

    Now it's down to a bit over 4%-- but if you buy in the auction (not from a 3rd party), and you time it right-- you can get close to 5%. Look at the Treasury auctions over the past few years, and you'll see what I mean.

    Recent Note, Bond, and TIPS Auction Results

    One example:

    30-YEAR BOND 02-15-2011 02-15-2041 4.750 4.750 100.000000

    I know you're much more market savvy than me-- so I'm guessing you already knew this?

    -Russ H.
     
  18. SHHDlove
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    SHHDlove 10 kph

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    Yeah, something like half of all NBA, NFL, and MLB players go bankrupt, no matter how much money they make. It's actually more of a problem with the situation they're in. Most of them aren't too horribly educated and have lived lives in poverty before making it big. Not only that, but the people who handle their money can easily rip them off, which happens way too often. Then it's just a matter of time before they get divorced, spend money on bad investments, and buy one to many houses.

    And just for the record, $80 million would last me a lifetime.
     
  19. trnkyit
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    trnkyit 10 kph Read The Millionaire Fastlane

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    I've met a few people who have won the lottery. In both cases, it ruined their lives. Money does weird things to people, especially family members. In both cases, family members bought expensive things and expected lavish gifts and financial support.
    They had to eventually cut them off. One after personally going bankrupt.

    I wonder if the continued spending is because of the constant pressure to be the hero, the guy that makes your dreams come true...

    Corey
     
  20. Russ H
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    Russ H 160 kph Read The Millionaire Fastlane Speedway Pass

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    HEre's the flaw in this logic:

    How much money do you have NOW?

    How much money have you rec'd from successful investments?

    Why assume that, when you have lots of money, your ability to choose great investments will improve?

    Most folks who have never had a lot of money and come into a windfall p*ss it all away within a very short period of time.

    Reason?

    If you aren't financially conscious, and smart, don't expect money to make you smarter.

    It won't.

    You'll just wake up one morning, and it will all be gone.

    (I'm totally not picking on you, Kd, just making a point).

    Learn about money, and how it works. How it grows.

    Then do it. Start w/little amounts, then get bigger.

    That's how most of the world's successful investors have done it.

    -Russ H.
     
  21. Jeremy
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    It's 5 percent per year.

    $80,000,000 *0.05 = $4,000,000 per year.

    12 months / year = $4,000,000 / 12 = $333,333 per month.

    Even at 2% per year, he would receive $1.6 million per year. The 10-year Treasury pays 2% right now.

    The 30-year pays 3.75%, which on $80,000,000 would be $3 million per year.
     
  22. CarrieW
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    thats only 5-6million dollars a year. for 12 yrs. supporting 70 people on 5 million dollars a year and aquiring cars clothes and watches ect, pissing money away like he did it doesnt surprise me at all. in fact I am surprised it didnt happen sooner!

    I am sure he probably also figured he was going to maintain his career for longer then he was able. and get better/more popular and in turn earn more money as time went on rather then it just being stopped.

    If I was forced to pick the lowest amount of money that I feel I could live off for the rest of my life and support my kids and lifestyle thru inflation and devaluation of the dollar I would have to say 5 mil...
     
  23. JackEdwards
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    JackEdwards 280 kph FASTLANE INSIDER Read The Millionaire Fastlane Speedway Pass

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    When I sell my business. I am hoping to find out..
     
  24. Ogden Rattliff
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    Ogden Rattliff 5 kph

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    The NBA and NFL didn't always have mentoring classes for new recruits. Not that they have to, but when people don't have the familial support to save money, they spend it easily. Now they do offer money management classes to help prevent people from being broke after earning so much.
    NFL.com news: NFLPA decides to hold its own rookie symposium in June
     
  25. theBiz
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    theBiz 120 kph Speedway Pass

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    yeah ...but no one can take away the memories of all those cocaine fueled, stripper infested partying nights now.
     

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