Thread: Allen Iverson - broke...

Allen Iverson Is Broke: What His Sinking Fortunes Can Teach Us - DailyFinance?

Originally Posted by healthstatus

Allen Iverson Is Broke: What His Sinking Fortunes Can Teach Us - DailyFinance?

It's like winning the lottery - playing in the NBA and drawing a big paycheck - so I guess the post-winnings results are pretty much the same for some of them:

money management creates wealth.

Another insecure person with money.

I've asked this question enough to know the answer I'm going to get. Could you retire on a million dollars? I ask and even tell people how fast the money would go. 300 thousand ....ish to Uncle Sam for taxes leaving you 700 thousand. Wife leaves you or just one serious trip to the hospital your now down to 350 thousand. Pay off your house, credit cards, other loans and buy (just once cause you deserve it) a new car. Down to 250 thousand. You sit at home bored and decide to do an "activity" to keep active (remodel the house, go back to school part time,ect..) and in two years your broke. Every time I ask the question. I hear "Oh no! Not me I could retire on a million dollars!" I just want to hit them over the head.

But even then...

LOL Right. Even then if 700 thousand is gone in two to five years (or less) an even million isn't going to last much longer.

Originally Posted by lightningbob

I've asked this question enough to know the answer I'm going to get. Could you retire on a million dollars? I ask and even tell people how fast the money would go. 300 thousand ....ish to Uncle Sam for taxes leaving you 700 thousand. Wife leaves you or just one serious trip to the hospital your now down to 350 thousand. Pay off your house, credit cards, other loans and buy (just once cause you deserve it) a new car. Down to 250 thousand. You sit at home bored and decide to do an "activity" to keep active (remodel the house, go back to school part time,ect..) and in two years your broke. Every time I ask the question. I hear "Oh no! Not me I could retire on a million dollars!" I just want to hit them over the head.

I understand where you are coming from but I could semi retire easily ( I dont know what I would do otherwise) with 1mil. I would not buy a house for myself to live in but an income producing property that could be purchased for 20% down instead of cash. If I bought a 1mil porperty for 250k down I would return about 55k after expenses (rough estimate) in income plus my networth now be 1.7mil. I would then buy/start another business. Let just say a restaurant/franchise, that is running successfully with management, with 1mil gross 200k cashflow priced at a 2 times multiple so 80k down owner finaced and returning 100K+-/yr after expenses. I then buy a new car so I am left with about 350K. I could invest the rest into a diversified portfolio similar to MJs sample earning about 8% for 28k/yr cashflow.

So overall my 1 mil/ 700k after taxes would equal about 183,000 a year in cashflow. I dont know about you but I could live just fine on that income especially because your tax liabilty would be reduced because of capital gains, business write offs, and real estate tax breaks. After 5 yrs the business should be paid off so you can add another 320k to your networth and you could refinance or sell your income property to get more cash or cashflow. This is why they always say your first mil is the hardest.

one word for these types of people...idiots. There is nothing else to say. You must be very dumb to go broke if you were a major superstar in the nba.

with a million you could buy lots of real estate and build wealth to support the rest of your life, so yeah I think I Could retire with 1mil

Originally Posted by cliqflip

with a million you could buy lots of real estate and build wealth to support the rest of your life, so yeah I think I Could retire with 1mil

If you have the mindset to do so, then you can do so. Unfortunately, most people would blow it real quick. I sometimes fear that I would be that type.

It's real easy to blow money once you have it. A couple gifts here, a new house there, some lavish parties, travelling and... bust.

I'm almost curious as to how fast one can blow $1 million.

Originally Posted by The-J

I'm almost curious as to how fast one can blow $1 million.

check out Brewster's Millions (1985) - IMDb for Hollywood's version.

Not a bad plan Pete (as far as I know) Of cousre you didn't retire on a million dollars but set yourself up to retire early and I might also note that all the other people I asked were average and know that 1 mil alone was enough to retire. So Pete your probably in the 2% ...or you wouldn't be here in the first place.

This is a sad situation but this is being repeated over and over again by celebrities and sport professionals that never learned to handle their own money. Allen Iverson earned enough money to sustain himself and his family for a lifetime.

Being 23... I couldn't retire with a million bucks... doesn't mean I wouldn't take it though.

As for Iverson, a pity. He isn't going to be able to command the same money ever again. Was a millionaire sidewalker.

-Simon

AI is simply an idiot. He earned so much money and never considered saving it or properly investing his millions to make million from his investments.

AI isn't really broke....he has millions put away, but that he has no access to that money until he's 45 or 55 or something...someone put the money away for him over the years....which saved him from financial ruin.....

Originally Posted by ashj1893

AI isn't really broke....he has millions put away, but that he has no access to that money until he's 45 or 55 or something...someone put the money away for him over the years....which saved him from financial ruin.....

If that is the case... it's sad to see a grown man treated like a baby.