Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
How not to "invest" $14 million
Old 11-26-2010, 11:34 AM   #1
Recycles dryer sheets
Focus's Avatar
 
Join Date: Oct 2009
Posts: 471
How not to "invest" $14 million

Yes, it's another one of those riches-to-rags stories, related in this New York Times article. And then to cap it off:

Quote:
He is furious at the banks and the bankers, who he thinks gave him bad advice, and he still sounds angry at his brother and others who decided to sell the company and who he says gave him little voice. Some of them got more than $100 million each, he said, while he got $14 million...
__________________

__________________
Focus is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 11-26-2010, 11:44 AM   #2
Moderator Emeritus
Khan's Avatar
 
Join Date: Aug 2006
Location: Pine Island, Florida
Posts: 6,868
Send a message via AIM to Khan
Quote:
Originally Posted by wishin&hopin View Post
Yes, it's another one of those riches-to-rags stories, related in this New York Times article. And then to cap it off:
**** happens.

I could handle $14 million of **** with no problem.
__________________

__________________
"Knowin' no one nowhere's gonna miss us when we're gone..."
Khan is offline   Reply With Quote
Old 11-26-2010, 11:55 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,616
Probably more interesting is what is not reported in the story.

I will take a wild guess: This guy was the black sheep of the family and not involved much in the family businesses. He got his money from the sale of the business just because he was related and not through any hard work of his own.

He was probably in rags before he got the money anyways. He was probably always blowing money his whole life. Clearly, his brother and BIL don't care too much for him. There must be a reason.

It would be interesting to know about the years before his good luck happened.
__________________
LOL! is offline   Reply With Quote
Old 11-26-2010, 12:01 PM   #4
Recycles dryer sheets
 
Join Date: Oct 2010
Posts: 392
I was coming to post this. I am so sick of reading about these idiots. I save my sorrow for people who are truly disadvantaged by location, upbringing, etc.

Speaking of which, has anyone watched the show "Downsizing" on WE? It's the story of another stupid couple with 7 kids who spent their life away. They met with a financial planner who advised them to stop spending $500 on dinners out since they were barely able to pay their rent.
__________________
BellBarbara is offline   Reply With Quote
Old 11-26-2010, 12:44 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
freebird5825's Avatar
 
Join Date: Feb 2008
Location: East Nowhere, 43N Latitude, NY
Posts: 9,017
In the same spirit of recently adding this emotion

are there any "tiny violins with tears" emoticons out there?

__________________
"All our dreams can come true, if we have the courage to pursue them." - Walt Disney
freebird5825 is offline   Reply With Quote
Old 11-26-2010, 12:48 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
"Only" $14 million? Sounds like those sad luck lottery winners.........
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Old 11-26-2010, 01:08 PM   #7
Moderator Emeritus
 
Join Date: May 2007
Posts: 11,036
Oh, gimme a break. Thankfully for him, ridicule does not kill...
__________________
FIREd is online now   Reply With Quote
Old 11-26-2010, 01:15 PM   #8
Thinks s/he gets paid by the post
 
Join Date: Jul 2010
Location: Chicago
Posts: 1,001
Sounds like the American dream to me....keep spending like there's no tomorrow. Guess he didn't care to budget for anything.
__________________
Dimsumkid is offline   Reply With Quote
Old 11-26-2010, 01:49 PM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2007
Posts: 7,526
“Sometimes, things don’t work out.”

Nope.

Sounds like the guy lived the high life for 12 years. That's about what $10 million buys you these days I guess. I guess spending $6-8 million on various forms of housing and hundreds of thousands on purchasing horses when you "only" have $10 million isn't such a good idea.
__________________
Retired in 2013 at age 33. Keeping busy reading, blogging, relaxing, gaming, and enjoying the outdoors with my wife and 3 kids (5, 11, and 12).
FUEGO is offline   Reply With Quote
Old 11-26-2010, 03:16 PM   #10
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,616
Which one of us E-R.org cheapskates is offering only $1.25M for his gazillion-dollar lake estate?
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Old 11-26-2010, 04:05 PM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
 
Join Date: Oct 2006
Posts: 7,450
Quote:
Originally Posted by Nords View Post
Which one of us E-R.org cheapskates is offering only $1.25M for his gazillion-dollar lake estate?

I think the ultimate fund raising challenge, would be trying to raising enough money from the ER forum To keep poor Mr. Martin and his family in the house. I've got to say that $3550/month for the mortgage of that place seems like a pretty good deal.
__________________
clifp is offline   Reply With Quote
Old 11-26-2010, 04:55 PM   #12
Thinks s/he gets paid by the post
tryan's Avatar
 
Join Date: Mar 2005
Posts: 2,449
We've vacationed in the Adorandaks every summer for the last decade (family reunion at Otter Creek). Anybody dumping 4.5 million in that neck of the woods is incompetent and getting robbed blind.

The whole area is a throw back to the 70's ... kid's golf free, $1 ice cream cones, $1.25/string bowling, $5/car load drive-in movie (when was the last time you went to a DRIVE IN!).

A fool and his money .....
__________________
FIRE'd since 2005
tryan is online now   Reply With Quote
Old 11-26-2010, 05:26 PM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,382
Well written article I believe.

Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Old 11-26-2010, 06:23 PM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,616
Quote:
Originally Posted by tryan View Post
We've vacationed in the Adorandaks every summer for the last decade ....
All the black flies are free. The area barely was a resort area in Teddy Roosevelt's time because of the flies which have not gone anywhere in the last 100 years (or hundreds of thousands of year if you prefer).

ETA: http://www.google.com/search?q=adiro...ack+fly+season
__________________
LOL! is offline   Reply With Quote
Old 11-26-2010, 06:36 PM   #15
Thinks s/he gets paid by the post
Leonidas's Avatar
 
Join Date: May 2006
Location: Where the stars at night are big and bright
Posts: 2,847
Quote:
Originally Posted by LOL! View Post
All the black flies are free. The area barely was a resort area in Teddy Roosevelt's time because of the flies which have not gone anywhere in the last 100 years (or hundreds of thousands of year if you prefer).
Well, no wonder kids golf for free. They're bait to draw off some of the flies so the adults can get to the car.
__________________
There is no pleasure in having nothing to do; the fun is having lots to do and not doing it. - Andrew Jackson
Leonidas is offline   Reply With Quote
Old 11-26-2010, 08:32 PM   #16
Full time employment: Posting here.
Ronnieboy's Avatar
 
Join Date: Feb 2008
Posts: 646
Quote:
Originally Posted by BellBarbara View Post
Speaking of which, has anyone watched the show "Downsizing" on WE? It's the story of another stupid couple with 7 kids who spent their life away. They met with a financial planner who advised them to stop spending $500 on dinners out since they were barely able to pay their rent.

Thanks for the info, I went to 'On Demand' and am watching it now.

The family says they were spending $15 to 18k per months during the good times......unbelieveable!!
__________________
I don't want to spend my entire life at work. I deserve more. - Want2retire aka W2R
Ronnieboy is offline   Reply With Quote
Old 11-27-2010, 10:17 AM   #17
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2007
Posts: 5,072
Well, he had a dream lifestyle for a decade.


This is a fairly common story. Spendthrift winds up broke.

Heck you would think he could at least manage to $1m/yr spending. Then he would have had at least 14 years of living high.
__________________
chinaco is offline   Reply With Quote
Old 11-27-2010, 10:52 AM   #18
Full time employment: Posting here.
hankster's Avatar
 
Join Date: Jan 2008
Posts: 645
Quote:
Originally Posted by freebird5825 View Post
In the same spirit of recently adding this emotion

are there any "tiny violins with tears" emoticons out there?

If there are, bbbamI a.k.a. Queen of Emoticons will find them
__________________
"There is no dignity quite so impressive, and no independence quite so important, as living within your means." Calvin Coolidge
hankster is offline   Reply With Quote
Old 11-27-2010, 11:17 AM   #19
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
calmloki's Avatar
 
Join Date: Jan 2007
Location: Independence
Posts: 5,459
Wow - youse guys are hard - nobody else ever had a construction project that got a little out of hand - and then you are stuck with something that is all torn up and not worth a damn so you have to keep pouring in the cash?
__________________
calmloki is offline   Reply With Quote
Old 11-27-2010, 02:59 PM   #20
Thinks s/he gets paid by the post
growing_older's Avatar
 
Join Date: Jun 2007
Posts: 2,608
So maybe construction projects can run over budget sometimes, but don't you have to allow for that or have contingency plans (like scaling back) in case such a thing happens. It's hard to know how straight the reporting in a story is, but it looks like the family bought a $250,000 lake house (camp) then proceeded to dump another 5.3 million into it, plus 1.25 million for a Vermont house, plus who knows how much for a place in England, plus almost half a million for A car and A horse, plus other horses and cars and who knows what else. Oh, and they have big payments on a $1+ million mortgage and must have also been investing with leverage since they claim to have lost a lot of money on margin calls. It doesn't sound so much like a hard luck story or a construction project that cost more than expected. It sounds like a lot of bad decisions one after another, so that instead of being able to absorb any unexpected bad news when something didn't turn out as well as they hoped, the whole house of cards came crashing down. Kind of like wall street types making aggressive bets with other people's money, except it was their own real money. Ouch. I certainly hope I can learn these lessons from watching others instead of repeating their mistakes. It's hard to have sympathy for folks who spent too lavishly on their big windfall and consequently run out of money, especially when they have just spent more in 12 years than most people will earn in a lifetime.
__________________

__________________
growing_older is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Anyone else want to join the "Lost over a million" club? novaman FIRE and Money 97 02-02-2016 07:58 PM
tiny button fix: "Save" edited comment sometimes = "Vote Now" ladelfina Forum Admin 0 09-24-2008 02:22 AM
"Your First Million is the Toughest" How long did it take you? Milkman FIRE and Money 85 07-31-2007 05:23 PM
Euthanasia scene in "Million Dollar Baby" Cut-Throat Other topics 61 08-10-2005 02:24 PM

 

 
All times are GMT -6. The time now is 04:19 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.