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Excellent Money Advice

Topic closed. 23 replies. Last post 1 year ago by savagegoose.

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Teddi's avatar - Lottery-008.jpg

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Posted: September 24, 2015, 9:27 pm - IP Logged

Saw this and thought I'd share. Would really work well for lottery winners too. Seems to me they make the exact same mistakes pro-athletes do. Not sure why anyone would need 15 vehicles unless they had a harem. Also not sure why someone not running a corporation would need 70 people on their payroll. Agreed with everything other than auditing mom comment. Mine would never understand or take kindly to that but since I wouldn't have her managing my money, that issue is moot.

Funny how so many people over many different disciplines have basically the exact same advice. Oprah told all of this to Toni Braxton years ago and she never listened. Active participation in your finances, sign your own checks, don't overdo the extravagance, learn to say no. Lottery winner Steven White (featured in the HBO documentary: Lucky) also said the same thing.

So many people saying the same thing and no one is learning.

http://video.foxnews.com/v/4315209708001/how-pro-athletes-lose-their-fortune/?utm_source=zergnet.com&utm_medium=referral&utm_campaign=zergnet_583505#sp=show-clips

I might wake up early and go running.  I might also wake up and win the lottery.

The odds are about the same.

    mypiemaster's avatar - 2015021003pileofcash
    JACKPOT HUNTER

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    Posted: September 24, 2015, 10:09 pm - IP Logged

    Saw this and thought I'd share. Would really work well for lottery winners too. Seems to me they make the exact same mistakes pro-athletes do. Not sure why anyone would need 15 vehicles unless they had a harem. Also not sure why someone not running a corporation would need 70 people on their payroll. Agreed with everything other than auditing mom comment. Mine would never understand or take kindly to that but since I wouldn't have her managing my money, that issue is moot.

    Funny how so many people over many different disciplines have basically the exact same advice. Oprah told all of this to Toni Braxton years ago and she never listened. Active participation in your finances, sign your own checks, don't overdo the extravagance, learn to say no. Lottery winner Steven White (featured in the HBO documentary: Lucky) also said the same thing.

    So many people saying the same thing and no one is learning.

    http://video.foxnews.com/v/4315209708001/how-pro-athletes-lose-their-fortune/?utm_source=zergnet.com&utm_medium=referral&utm_campaign=zergnet_583505#sp=show-clips

    People are not learning because they choose not to listen. Better listen and learn now than cry later when it's all too late.

    Seek and ye shall find -Matt. 7:7 ...Ask and ye shall receive -John 16:24 ...Give and it shall be given unto you -Luke 6:38 ...Be careful what you ask for!!! -Mypiemaster 1:1

    Having Money Solves Problems That Not Having Money Creates Yes Nod ****John Carlton****

      Teddi's avatar - Lottery-008.jpg

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      Posted: September 24, 2015, 11:45 pm - IP Logged

      People are not learning because they choose not to listen. Better listen and learn now than cry later when it's all too late.

      You're probably right. But the thing is, the reason people continue with guilt trips and emotional blackmail throughout the centuries is because it works. It works REALLY well. I can well imagine if a person had close friends growing up who've seen them through thick and thin, one might feel obligated to help the friend who's been there for you. Then look at that mother who presented her newly drafted son with a bill for the cost of raising him. I might give her some money just to get her out of my life.

      I remember Dr Phil once using the phrase "nickel and diming yourself into bankruptcy" You think something is really inexpensive, so you buy it, and over time those nickels add up. If I woke up tomorrow and was worth $1M, it might be easy for my friend to think (and perhaps me as well) that giving that friend $1,000 for something they need is no big deal. I have a million dollars so $1000 is a drop in the bucket. But if a few months down the line, I do the same with another friend, then a family member etc. before I know it, my money is gone and I'm scratching my head wondering how that was possible. I don't think all these smart people purposefully ignore sage advice. I think there's a human element. 

       

       

      Monitoring your investments is the easiest thing to do in terms of emotional output. I think saying no to someone you genuinely care about comes much harder. I'll do it, because I'm not going to go broke for anyone ever again, but it'll take an emotional toll on me to do it. As for auditing my parents? That's beyond the scope of my boundaries. I'm not tough enough to do that.

      I might wake up early and go running.  I might also wake up and win the lottery.

      The odds are about the same.

        noise-gate's avatar - images q=tbn:ANd9GcR91HDs4UJhjxO7cmeMQWZ5lB_FOcMLOGicau4V74R45tDgPWrr
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        Posted: September 25, 2015, 12:05 am - IP Logged

        Good Question & follow through Teddi- Unequivocally Good advice. Watch your Money, watch people around you,watch your spending habits...

        Image result for watching your money

        People who say it cannot be done should not interrupt those who are doing it- George Bernard Shaw.

          Teddi's avatar - Lottery-008.jpg

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          Posted: September 25, 2015, 7:19 pm - IP Logged

          Good Question & follow through Teddi- Unequivocally Good advice. Watch your Money, watch people around you,watch your spending habits...

          Image result for watching your money

          Sorry for the delayed response. Was slammed at work. 

          Okay, so I've had a little time to think about it, and I don't get how in the world Antoine Walker could have had 70 people working for him at the same time. I may have to take back my earlier comment about him just not being involved enough with his finances and just call him a moron. He made $110 million in his career. After taxes, the cut for his agent and manager, the most he could take home would be $50M. 

          I've gone through all the services he could possibly have needed in order to come up with that many employees (personal assistant, stylist, security, chauffeur, majordomo, personal chef, personal trainer, housekeeper, pool guy, lawyer, accountant, adviser etc), but unless he had a private jet and a his own yacht, both fully staffed, 70 employees is insane. 

          That's not someone with trouble saying no. That's just an idiot.

          I might wake up early and go running.  I might also wake up and win the lottery.

          The odds are about the same.

            CDanaT's avatar - tiger avatar_04_hd_pictures_169016.jpg
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            Posted: September 25, 2015, 8:52 pm - IP Logged

            http://chicago.cbslocal.com/2015/01/19/past-lotto-winner-offers-advice-for-person-with-winning-mega-millions-ticket/

            Here's some advise from a past winner in 2000 who strongly urges not to lend money to family and friends.

            Stay Positive, Believe and good things will come your way

              hearsetrax's avatar - 0118

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              Posted: September 26, 2015, 6:07 am - IP Logged

              http://chicago.cbslocal.com/2015/01/19/past-lotto-winner-offers-advice-for-person-with-winning-mega-millions-ticket/

              Here's some advise from a past winner in 2000 who strongly urges not to lend money to family and friends.

              Skeptical the only curse to the lottery, if thar is such a thing it

               

              is that you find your heart/mortal soul isn't frosted over hard enough

                Tialuvslotto's avatar - Jailin
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                Posted: September 26, 2015, 7:08 am - IP Logged

                Interesting article, CDT!

                Although the guy calls the lottery a curse and says if he won again he would give it all away -- he hasn't given it all away.  Although he is a generous giver to charities, it sounds like he keeps enough to live on quite comfortably.

                "There is no such thing as luck; only adequate or inadequate preparation to cope with a statistical universe."

                ~Robert A. Heinlein

                  CARBOB's avatar - FL LOTTERY_LOGO.png
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                  Posted: September 26, 2015, 7:34 am - IP Logged

                  Sorry for the delayed response. Was slammed at work. 

                  Okay, so I've had a little time to think about it, and I don't get how in the world Antoine Walker could have had 70 people working for him at the same time. I may have to take back my earlier comment about him just not being involved enough with his finances and just call him a moron. He made $110 million in his career. After taxes, the cut for his agent and manager, the most he could take home would be $50M. 

                  I've gone through all the services he could possibly have needed in order to come up with that many employees (personal assistant, stylist, security, chauffeur, majordomo, personal chef, personal trainer, housekeeper, pool guy, lawyer, accountant, adviser etc), but unless he had a private jet and a his own yacht, both fully staffed, 70 employees is insane. 

                  That's not someone with trouble saying no. That's just an idiot.

                  Agents use to get 40% off the top. $110 million-40%=56 million left. IRS gets it off the top 110 million. Not sure about pct. will use 32%. $110 million X 32%=I will use 35 million. 44 +35=80 million. There isn't as much left as you thought. He wasn't smart at all. He should have saved for the future, the average person would have.

                    Teddi's avatar - Lottery-008.jpg

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                    Posted: September 26, 2015, 9:36 am - IP Logged

                    http://chicago.cbslocal.com/2015/01/19/past-lotto-winner-offers-advice-for-person-with-winning-mega-millions-ticket/

                    Here's some advise from a past winner in 2000 who strongly urges not to lend money to family and friends.

                    I've spoken about this guy before and no one should take advice from him. I believe he's gone a little soft in the head after his wife died because everything he says contradicts himself. 

                    • The lottery is a curse, it's the worst thing that could ever happen to you...but I still play in the hopes of winning again so I can give it away. 
                    • Strangers keep asking me for money...but I keep myself in the media talking about all the money I won every time there's a new big winner

                    He still has money left, why not give THAT to charity instead of counting on another win? Because he's full of crap, that's why.

                     

                     

                    Family and friends are notorious for not repaying loans, even with non-lottery winners, and most of the time, the problem is with the lender. They loan money to people they know on a handshake. There are no loan agreements, no collateral, nothing indicating the time period of the loan and what the interest rate is (and according to the IRS, if no interest is charged, they can view it as a gift  and tax you accordingly). 

                     

                    I've loaned money to family and friends before and either got cursed out when I requested repayment, or they just ignored me. I don't consider that a curse, more like a fantastic learning experience, and they will NEVER get another dime from me again. It's that simple

                    When you loan money to someone you have a personal relationship with, in your head you better consider it a gift. If that "loan" will cause some sort of detriment(financial, emotional or both) to you if it doesn't get paid back, do not give the loan. Either you demand collateral or you consider it a gift. If it's a gift, then repayment won't be an issue so that IF you actually get paid back, it'll be a pleasant surprise. If you don't get repaid, no big deal, it was a gift.

                    I might wake up early and go running.  I might also wake up and win the lottery.

                    The odds are about the same.

                      Avatar

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                      Posted: September 26, 2015, 9:43 am - IP Logged
                      • Win lotto
                      • Lawyer up
                        • Protect yourself from other people wanting your loots
                        • Protect yourself from yourself wasting your loots
                        SergeM's avatar - slow icon.png
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                        Posted: September 26, 2015, 10:04 am - IP Logged

                        I kind of hate this negative coaching. Be positive, there is no help in showing others falling while the goal is to stand.

                          Teddi's avatar - Lottery-008.jpg

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                          Posted: September 26, 2015, 10:21 am - IP Logged

                          Agents use to get 40% off the top. $110 million-40%=56 million left. IRS gets it off the top 110 million. Not sure about pct. will use 32%. $110 million X 32%=I will use 35 million. 44 +35=80 million. There isn't as much left as you thought. He wasn't smart at all. He should have saved for the future, the average person would have.

                          Hey Carbob, not sure when that 40% thing was but the standard is 3% - 10% of a player's contract. I think it's in the music and entertainment industry that agents and producers get really huge cuts.

                          The NBA caps agent fees at 4% but I don't know when that cap started. If it was before or during Walker's career or after he retired. Sports agents can get a much bigger cut from endorsement contracts, but not from a player's actual salary. Walker's biggest endorsement contract was with Adidas for $10M. Not per year, overall. So we're up to about $118M - $120M earned over 12 years. 

                          I'm thinking $50M take home is a safe bet. I don't see any possible way he could have banked more than $75M. At $50-$75M his spending habits were still ridiculous. If he took home anything less than $50M, his spending habits bordered on insanity. He was $8M in the hole by the time he filed bankruptcy. Don't see how it's possible to be that far down without even a lawsuit or heavy drug use thrown into the mix.

                          I might wake up early and go running.  I might also wake up and win the lottery.

                          The odds are about the same.

                            Teddi's avatar - Lottery-008.jpg

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                            Posted: September 26, 2015, 10:31 am - IP Logged

                            I kind of hate this negative coaching. Be positive, there is no help in showing others falling while the goal is to stand.

                            I think that's a great point, and you're probably right. I just feel that sometimes we have to be aware of mistakes of the past so that we don't repeat them in the future. There is no standing without first falling. But if I observe all the ways others have fallen, I'll learn enough to limit the amount of times I have to fall before being strong enough to stand.

                            The other problem is, there are very few successful winners who have remained in the public eye. If the only people who make the news are the ones who have lost everything, and not the ones who've made sound financial decisions, it limits where we can go to get the information we need in order to learn what to do and what not to do.

                            I might wake up early and go running.  I might also wake up and win the lottery.

                            The odds are about the same.

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                              Posted: September 26, 2015, 12:11 pm - IP Logged

                              "That's just an idiot."

                              You don't have to be an idiot to to do things that are idiotic. Not to say the guy might not be a complete moron who still doesn't get it, but thinking you're immune just because you think you're smart (and might be right) is one of the things that can get you in trouble. The more you think it can't happen to you, the more at risk you are. On top of that, few people even bother to do the math.

                              It may be nice to fantasize about a $20 million private jet, a $10 million yacht, and a $10 million piece of beachfront property in the Caribbean, but with the possible exception of Gloria McKenzie no lottery winner has ever taken home enough money to actually afford those things unless they're very frugal about everything else. Even then, they're going to have to sell off the toys and cut expenses before very long. Everybody has to live within his means, and it takes a hell of a lot of money for annual expenses of $3 to $5 million to be within your means, unless you're already fairly old. As big as it is, you probably can't do it with the take home from tonight's $267 million PB jackpot.

                              $50  million is a hell of a lot of money, but I think that most people still overestimate how much it is.  It's enough to lead an extremely comfortable lifestyle, but it's still a limited resource and it would be easy to burn through it by being too extravagant. I disagree with some of the details, but here's a decent article about what you can really afford with a given amount of money.

                              How Does Your Life Change As You Go From Millionaire, To Hundred Millionaire, To Billionaire And Beyond??? | Celebrity Net Worth