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Going bankrupt on $10M per year
02-16-2012, 07:12 AM
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#1
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Full time employment: Posting here.
Join Date: Jan 2004
Posts: 836
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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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02-16-2012, 07:25 AM
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#2
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Thinks s/he gets paid by the post
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 1,537
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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!!!
__________________
The worst decisions are usually made in times of anger and impatience.
Always do your own due diligence, I make a lot of mistakes.
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02-16-2012, 08:05 AM
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#3
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: May 2005
Posts: 8,102
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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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02-16-2012, 08:19 AM
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#4
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2008
Location: Chicagoland
Posts: 7,222
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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...
__________________
It's a pity to waste your life living the same tiny day over and over again. James Taylor
Retired Jun 2011 at age 57
Target AA: 55% equity funds / 40% bond funds / 5% cash
approx 20% SI (secure income, SS only)
Target WR: approx 2.5%
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02-16-2012, 08:38 AM
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#5
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Full time employment: Posting here.
Join Date: Nov 2011
Posts: 666
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"Wait, you're saying it's not 'Live Beyond Your Means'?"
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02-16-2012, 08:45 AM
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#6
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Moderator
Join Date: Jul 2005
Location: Traveling....
Posts: 12,703
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 Quote:
Originally Posted by GrayHare
"Wait, you're saying it's not 'Live Beyond Your Means'?"
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Wars have been started on misinterpretations like that 
__________________
Retired in Jan, 2010 at 55
Now it's adventure before dementia
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02-16-2012, 08:49 AM
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#7
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Recycles dryer sheets
Join Date: Jan 2011
Posts: 375
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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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02-16-2012, 09:33 AM
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#8
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: May 2005
Posts: 8,102
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Quote:
Originally Posted by mystang52
...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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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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02-16-2012, 09:50 AM
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#9
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Recycles dryer sheets
Join Date: Jul 2006
Posts: 102
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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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02-16-2012, 09:53 AM
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#10
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Recycles dryer sheets
Join Date: Aug 2011
Location: Atlanta
Posts: 206
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Quote:
Originally Posted by HatePayingTaxes
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. ...
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that is a simple concept that 99% of people do not get.
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02-16-2012, 09:57 AM
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#11
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Full time employment: Posting here.
Join Date: Jul 2007
Location: ST LOUIS
Posts: 654
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Quote:
Originally Posted by Midpack
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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Great book I also loved Stop acting rich by Thomas Stanley.
__________________
Proverbs 15:22 Designs are brought to nothing where there is no counsel: but where there are many counsellors, they are established.
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02-16-2012, 10:26 AM
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#12
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Thinks s/he gets paid by the post
Join Date: Jun 2008
Posts: 3,406
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__________________
Have you ever seen a headstone with these words
"If only I had spent more time at work" ... from "Busy Man" sung by Billy Ray Cyrus
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02-16-2012, 10:41 AM
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#13
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Moderator
Join Date: Sep 2007
Posts: 11,216
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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.
__________________
Everything will be monkey in the end. If it's not monkey, it's not the end.
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02-16-2012, 10:57 AM
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#14
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Thinks s/he gets paid by the post
Join Date: Jul 2005
Posts: 1,993
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So easy a child can do it.
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02-16-2012, 11:04 AM
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#15
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Recycles dryer sheets
Join Date: Jul 2009
Location: Denver and Scottsdale
Posts: 350
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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.
__________________
FIRE'D in July 2009 at 51...Never look back!
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02-16-2012, 12:13 PM
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#16
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Thinks s/he gets paid by the post
Join Date: May 2009
Posts: 2,246
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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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02-16-2012, 12:46 PM
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#17
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Thinks s/he gets paid by the post
Join Date: Jun 2008
Posts: 3,406
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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
__________________
Have you ever seen a headstone with these words
"If only I had spent more time at work" ... from "Busy Man" sung by Billy Ray Cyrus
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02-16-2012, 01:34 PM
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#18
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Full time employment: Posting here.
Join Date: Jun 2006
Posts: 774
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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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02-16-2012, 01:39 PM
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#19
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Thinks s/he gets paid by the post
Join Date: Jul 2005
Posts: 1,993
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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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02-16-2012, 02:11 PM
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#20
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Thinks s/he gets paid by the post
Join Date: Jan 2006
Posts: 1,628
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I don't know how its possible, but I'd like to give it a try!
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