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Going bankrupt on $10M per year
Old 02-16-2012, 08:12 AM   #1
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Going bankrupt on $10M per year

Allen Iverson Is Broke Despite Making More Than $150 Million During His Career

Allen Iverson Is Broke Despite More Than $150 Million In Career Earnings

Hard to believe, isn't it? And yet stories like this are not hard to find.
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Old 02-16-2012, 08:25 AM   #2
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I'll bet we all have stories of people we know who lived well, spent a fortune and then lost it when things went sour for a while. I can think of several without ever trying: Big houses, fancy cars, travel, great parties, and when the income slowed down, it all went away. Talk about living ABOVE one's means!!!
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Old 02-16-2012, 09:05 AM   #3
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Anybody who has an outstanding bill to a jewler of $800K is probably not LBYM...

The sad thing is that even with a $4 million contract (if he is getting one) is that it will not help him out in the long run.... that money will be gone within a year or two...
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Old 02-16-2012, 09:19 AM   #4
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These stories (even at that scale) really don't surprise me after reading The Millionaire Next Door, great book. One of the most positive influences from a book ever for me...
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Old 02-16-2012, 09:38 AM   #5
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"Wait, you're saying it's not 'Live Beyond Your Means'?"
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Old 02-16-2012, 09:45 AM   #6
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Quote:
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"Wait, you're saying it's not 'Live Beyond Your Means'?"
Wars have been started on misinterpretations like that
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Old 02-16-2012, 09:49 AM   #7
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...and although not 100% confirmed Whitney Houston reportedly died broke. It never ceases to amaze me how these athletes/musicians/celebrities can p*&& away so much money. It seems hard to be able to spend that much money, never mind lose all of it.
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Old 02-16-2012, 10:33 AM   #8
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...and although not 100% confirmed Whitney Houston reportedly died broke. It never ceases to amaze me how these athletes/musicians/celebrities can p*&& away so much money. It seems hard to be able to spend that much money, never mind lose all of it.

As the story mentioned, and outstanding $800K bill to a jewler... who knows how much was spent over the years...

Also, those private jets cost a bit of money... and hiring the entorage to follow you around making it look like you are important... expenses add up
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Old 02-16-2012, 10:50 AM   #9
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Just goes to tell you that amount of money is not the issue here. One can have millions but, if can't LBYM, you're screwed. It's the life style that's more important than money.
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Old 02-16-2012, 10:53 AM   #10
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Just goes to tell you that amount of money is not the issue here. One can have millions but, if can't LBYM, you're screwed. ...
that is a simple concept that 99% of people do not get.
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Old 02-16-2012, 10:57 AM   #11
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These stories (even at that scale) really don't surprise me after reading The Millionaire Next Door, great book. One of the most positive influences from a book ever for me...
Great book I also loved Stop acting rich by Thomas Stanley.
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Old 02-16-2012, 11:26 AM   #12
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Allen Iverson Has No Answer For Financial Woes | ThePostGame

Old friends..they made him, and unmade him.
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Old 02-16-2012, 11:41 AM   #13
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Athletes and artists--they're risk takers almost by definition, their talents don't always extend to finance, and they attract people who want a piece of them.
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Old 02-16-2012, 11:57 AM   #14
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So easy a child can do it.
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Old 02-16-2012, 12:04 PM   #15
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AI has had issues since he was a kid. Doesn't look like he has learned a whole lot since then.
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Old 02-16-2012, 01:13 PM   #16
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They (broke, once rich celebs/athletes) make the classic mistake over and over. That being assuming their current earnings will continue throughout their life, when in actuality, their careers have a very short shelf life. Of course some have been ruined by not paying any attention at all to their finances and getting caught in poor investment schemes.
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Old 02-16-2012, 01:46 PM   #17
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Article from 2006. Interesting and detailed, on this topic, about Big George who almost went down this path of going broke.

'David W. Latko, a money manager and radio host who recently published “Everybody Wants Your Money” (HarperCollins), a personal finance primer, reduces the mechanics of squandered wealth to handy categories. He says there are five basic ways people become rich: they inherit, marry, steal, win or earn their fortunes. Only those who earn fortunes, says Mr. Latko, tend to preserve their wealth. Inhabitants of the other four categories are more prone to be wastrels.'

Fortune’s Fools: Why the Rich Go Broke - New York Times
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Old 02-16-2012, 02:34 PM   #18
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I notice in that story that AI had a 7 million dollar deal with Reebok. Reebok will probably not notice or even care but to me that marks them as a very dumb company and I will certainly consider that in my next sneaker buying decision.
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Old 02-16-2012, 02:39 PM   #19
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Nothing wrong with being wastrels, they're probably helping our economy right now. If we have to support them later when they're broke, well that's probably a small price to pay for the taxes they paid and economic stimulus they provided. I assume their lives will proceed as planned.
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Old 02-16-2012, 03:11 PM   #20
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I don't know how its possible, but I'd like to give it a try!
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