Family blows $10M windfall in 10yrs

[JEDI]

http://finance.yahoo.com/banking-bu...familys-fall-from-affluence-is-swift-and-hard

"fortune he got from the sale of the business his father founded"


If you’re ever lucky enough to get a 10 million dollars windfall and feel like blowing it all in just a decade so that you end up with nothing, here’s what you should do:

1. Watch others, who have much more than you have, and emulate their lifestyles, trying to prove that you’re “just as good as they are.

2. Do not, under any circumstances, invest the money in a conservative mix of stocks, bonds, real estate, commodities and cash. Instead:

3. Go ahead and buy a huge house. Renovate it to the highest standards.

4. Buy a few vacation properties. Renovate them too.

5. Start a collection of expensive cars. Each car should cost at least $300,000.

6. Buy a few horses. Focus on expensive horses that cost around $200,000.

7. Indulge in $10,000 fur coats.

8. Go on frequent vacations. Stay at $1000-a-night hotels.

Fast forward ten years. Mission accomplished!

...but their problem was that they had completely changed their lifestyle, and began to live as if they had not 10 million, but 100 million.


what a waste. I would have gone out in a blaze of glory w/Hookers + Blow

 

[sixone]

It wouldn't take me that long to give away ten million.

 

[halik]

Adirondacks waterfront camp at Tupper Lake, N.Y. Their garage held three stylish cars, including a yellow Aston Martin; they owned three horses, one that cost $173,000; and Mr. Martin treated his wife, Kate, to a birthday weekend at the Waldorf-Astoria, with dinner at the "21" Club and a $7,000 mink coat.

That luxurious world was fueled by a check Mr. Martin received in 1998 for $14 million, his share of the $600 million sale of Martin Media, an outdoor advertising business begun by his father in California in the 1950s. After taxes, he kept about $10 million.

...
Mr. Martin had never been in management at the billboard company,

...

Mr. Martin faced a series of margin calls. He needed more cash in his brokerage accounts because he had been tapping into a credit line with his investments as collateral.

Summarized. He's a fucking moron.

 

[yllus]

Supposedly the best way to deal with instant wealth is to try and live as close to a normal life for the first year, then start making decisions on what to move up to. I could see myself having a bit of a struggle with that.

 

[halik]

Supposedly the best way to deal with instant wealth is to try and live as close to a normal life for the first year, then start making decisions on what to move up to. I could see myself having a bit of a struggle with that.

Err I thought you're a wealthy attorney?

 

[yllus]

Err I thought you're a wealthy attorney?

Unfortunately not, just a well-paid-but-under-six-figures software developer!

 

[arkcom]

Unfortunately not, just a well-paid-but-under-six-figures software developer!

Don't worry, you'll be making $500k in no time!

 

[Hayabusa Rider]

If I ever came into that kind of money the first thing I'd do is hire a financial adviser to make it last the rest of my life. It's astounding that people would want to work so hard to impoverish themselves when they can live a life of ease.

 

[TridenT]

Supposedly the best way to deal with instant wealth is to try and live as close to a normal life for the first year, then start making decisions on what to move up to. I could see myself having a bit of a struggle with that.

Yeah, supposedly. Stupid fucking advice, IMHO.

If I had $10m, I'd be doing whatever the fuck I want.

Obviously I wouldn't spend it on stupid shit like that guy. I'd do a lot of traveling. Go to school during the weekdays, live in a nice place, and then on the weekends... fly first class to some other city and have fun. Come back on Monday and start the grind, knowing that on Friday I'll leave. You'll always have something to look forward to at the end of the week even when you're grinding away at homework.

 

[goog40]

This guy knows how to do it:

http://www.dailymail.co.uk/news/art...ichael-Carroll-dole-squandering-millions.html

Blew his money on "thousands" of hookers and blow. Back on welfare. No regrets.

 

[Gibsons]

6. Buy a few horses. Focus on expensive horses that cost around $200,000.

The way to make a small fortune on horses is a well-known secret: Start with a large fortune.

 

[TecHNooB]

Yeah, supposedly. Stupid fucking advice, IMHO.

If I had $10m, I'd be doing whatever the fuck I want.

Obviously I wouldn't spend it on stupid shit like that guy. I'd do a lot of traveling. Go to school during the weekdays, live in a nice place, and then on the weekends... fly first class to some other city and have fun. Come back on Monday and start the grind, knowing that on Friday I'll leave. You'll always have something to look forward to at the end of the week even when you're grinding away at homework.

fly first class every weekend? jesus.

 

[TridenT]

I think buying the yellow Aston Martin is fine, but the fact that he bought all those fucking horses is stupid. Who the fuck cares about horses? Fucking idiots...

I want this money.

 

[TridenT]

fly first class every weekend? jesus.

I'd figure out a way to get discounts with some kind of frequent flier thing. First class = less time spent at airport goofing around. I want to spend as little time traveling as possible so that I can efficiently use my time.

 

[TecHNooB]

I'd figure out a way to get discounts with some kind of frequent flier thing. First class = less time spent at airport goofing around. I want to spend as little time traveling as possible so that I can efficiently use my time.

i think youll be goofing off a lot waiting for that first class only airplane to arrive.

 

[BeauJangles]

Yeah, supposedly. Stupid fucking advice, IMHO.

If I had $10m, I'd be doing whatever the fuck I want.

Obviously I wouldn't spend it on stupid shit like that guy. I'd do a lot of traveling. Go to school during the weekdays, live in a nice place, and then on the weekends... fly first class to some other city and have fun. Come back on Monday and start the grind, knowing that on Friday I'll leave. You'll always have something to look forward to at the end of the week even when you're grinding away at homework.

Your entire life, including this post, is all about being the ultimate monday morning quarterback.

 

[Jumpem]

I would have no problem retiring way early and living the rest of my life on that. Buy a nice but realistic $400-500k house, pay off all debt, and live off 1-2% interest annually.

 

[Engineer]

Your entire life, including this post, is all about being the ultimate monday morning quarterback.

LOL. If he had $10 million, he would have lost it in 5 years, not 10.

I wouldn't need $10 million to retire, I would do it on $1 million and not work again (yes, I'm serious).

 

[Imp]

They'd have had a sweet $500k to $1 million per year income if they invested it conservatively. Ignoring interest, they essentially spent $1 million a year. At least they helped spread the money around...

Gold:

"Though he faulted the conventional wisdom of investing in stocks and real estate for some of his woes, along with poor financial advice, he accepted much of the blame himself.

Then came the financial crisis. The markets plunged, as did the value of the Martins' trust. By fall 2008, with much of the family's net worth tied up in housing, Mr. Martin faced a series of margin calls. He needed more cash in his brokerage accounts because he had been tapping into a credit line with his investments as collateral. In January 2009, he cashed in a retirement account worth roughly $91,000."

Not only were they stupid enough to burn it all, they did some great margin trading to speed it along.

 

[Malak]

If I ever came into that kind of money the first thing I'd do is hire a financial adviser to make it last the rest of my life. It's astounding that people would want to work so hard to impoverish themselves when they can live a life of ease.

I wouldn't need an advisor for that. I'd be dead before I spent 2 mil.

 

[dighn]

I would have no problem retiring way early and living the rest of my life on that. Buy a nice but realistic $400-500k house, pay off all debt, and live off 1-2% interest annually.

the trouble is, financially sensible people don't blow so much money on lottery to stand a good chance of winning it in the first place.

 

[Harrod]

I would have no problem retiring way early and living the rest of my life on that. Buy a nice but realistic $400-500k house, pay off all debt, and live off 1-2% interest annually.

Pretty much this

 

[Gigantopithecus]

If I came into $10M I'd simply add about $250k/yr to my income for the next 40 years. You don't need to be wealthy to be supremely comfortable.

A fool and his money, on the other hand...

 

[KGB]

It wouldn't take me that long to give away ten million.

I think it would take me longer... to do it properly.

 

[IEC]

$10M? I'd give myself a "salary" of 200K a year and "retire" (read: do something meaningful and enjoyable).