Thread: How long would 80-Million dollars last YOU?

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."

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?

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

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

Originally Posted by maximus20895

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

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.

Originally Posted by PhxMJ

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.

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?

Originally Posted by maximus20895

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

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.

Originally Posted by Kdthelegend

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.

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.