Let's pretend....

[vraiblonde]

Say you had accumulated $50 million in your lifetime through your various endeavors. Suddenly you are unemployed and no longer have income. Would you be immediately unable to make ends meet and standing in line at the food bank?

I don't really understand how people blow through money like that. How do these celebrities or *cough* politicians who've made tens and hundreds of millions end up broke?

 

[Tech]

Gutfeld! had Walter Kirn on the other night and they touched upon this topic. Walter gave some insight, former MIL is Margot Kidder.

 

[Sneakers]

As they accumulate wealth, spending increases too. A big house, expensive cars, staff, yachts, etc... and the monthly outlay becomes huge. Suddenly the income is gone, but to maintain an image and not appear like a commoner again, the monthly outlay isn't cut back until it's too late. Reputations to uphold. They blow thru any savings just to keep appearances rather than admit they are destitute.

 

[RoseRed]

Walter Kern mention this on Gutfeld last week. His former MIL, Margot Kidder, ended up practically homeless. She told him that when she wasn’t getting much work or income, she kept spending lavishly so as to not let others know she was really in dire straits and to keep up the appearance that she still had money.

 

[vraiblonde]

As they accumulate wealth, spending increases too. A big house, expensive cars, staff, yachts, etc... and the monthly outlay becomes huge. Suddenly the income is gone, but to maintain an image and not appear like a commoner again, the monthly outlay isn't cut back until it's too late. Reputations to uphold. They blow thru any savings just to keep appearances rather than admit they are destitute.

That makes sense. And I guess they think they'll always be making that kind of money instead of understanding that their income will likely decrease because circumstances change, so they don't live modestly and put together a plan to stay that way.

 

[Monello]

You always hear about the football player, basketball player or pro boxer that end up bankrupt a few years after their playing careers are over. Imagine you are 21 years old and someone hands you a weekly paycheck for $25,000 after taxes. You probably think it's going to last forever.

Then you buy your momma a home. Not just any home. You get her a 7 bedroom 5 bath palace. But once your career is over, how is your family going to afford the property tax on the home you gave here free & clear? They can't. They could have gotten a modest ranch home that they could actually afford to live in for the rest of their lives.

Clinton Portis lost $43.1 million in 1 bad investment. I guess there is no financial management classes he could have taken at the University of Miami. Maybe he would have learned of the concept of diversification.

Portis’ own spending also was out of hand. After he was traded from the Broncos to the Redskins in 2002, he scored one of the largest payouts for an NFL running back —$50.5 million and $17 million in bonuses over eight years. With those funds, a 22-year-old Portis bought “a lot” of houses with huge fish tanks, stripper poles and a slew of vehicles. While he also supported his family, the big spending led Portis to file for bankruptcy in 2015, which put his financial woes on the public stage, including four women’s owed domestic support totaling $412,000, $390,000 due to the IRS and over $287,000 owed to the MGM Grand casino.

southeast Jerome

 

[Hijinx]

Maybe I am different, but it proves to me that with actors and people who get in this difficulty, Just aint too smart.
Also creditors who allow them to run up debt into the millions of dollars they aren't paying attention either.
If you allow someone to run up a debt in the millions of dollars you deserve to lose it.
Me I have never made that kind of money, but i always put some away for a rainy day,
Spending more than you earn and putting it on credit is the way to financial ruin.

 

[Czar]

Say you had accumulated $50 million in your lifetime through your various endeavors. Suddenly you are unemployed and no longer have income. Would you be immediately unable to make ends meet and standing in line at the food bank?

I don't really understand how people blow through money like that. How do these celebrities or *cough* politicians who've made tens and hundreds of millions end up broke?

Get divorced a few times. You will rip through assets like Democrats with money in their hands.

 

[Sneakers]

Get divorced a few times.

 

[Homer J]

If I had $50 million in assets right now, I would definitely be unemployed tomorrow.

 

[GURPS]

Say you had accumulated $50 million in your lifetime through your various endeavors. Suddenly you are unemployed and no longer have income. Would you be immediately unable to make ends meet and standing in line at the food bank?

Spending habits swell to consume your income ... that said, I have no desire for extreme vacations, owning 2 or more homes, planes or boats ....

my house would consist of a comfy bed, basic kitchen, MASSIVE library and media center / PC Gaming room / tech bench work area

 

[LightRoasted]

For your consideration ...

Let's pretend....

Hasn't there been enough of that lately?

Including within the last administration?

 

[Gilligan]

I blew through most of my fortune spending it on drugs, boats, fast cars, wild loose wimmin, expensive foreign vacations, and alcohol.

The rest I just wasted.