Thursday, May 27, 2010

Investing/Gambling, Eddy Curry

Recently I sent the FA an email regarding one of the mutual funds we both own. The fund manager has a good track record but I had questions about some of the fund holdings. I also mentioned my recent purchase of DDM, the double leveraged Dow Jones index. The FA has been on me lately for this and it has lost quite a bit in the past couple months. He suggested we have a serious look at what I need to save and what I can afford to play with on my own. I replied, “nine inches” to which he replied that our conversation was over (just because yours is smaller FA doesn't mean you're less of a man, at least yours gets used in the conventional sexual nature). But then I figured why not set up an income statement and balance sheet up for B to the... Corp. Some of the results:

% of net income

30.7% mortgage (including taxes)
2.5% extra payments on the mortgage
2.0% cell phone (puppy ate one)
2.0% electricity
1.0% heat (Renter will attest to that)
1.4% car insurance
2.1% Ashley furniture
3.0% credit cards at 4% rate
16.3% general spending (beer, gas, mostly beer)

The bottom line is I pretty much live off 60% of my net income. I know there are other costs that fall in there like new clothes and lumber for the new storage box but that kind of stuff doesn't happen too often. I also didn't figure in the 3-4 times a year that I'll drop $500 at the casino.

The balance sheet, on the other hand, is weighted a bit heavier on the liability side due to the house note. While I have shaved some off the bottom line with extra payments I still feel the need to pay more to get the balance reduced. Looking at the monthly statement and the principle/interest ratio is a bit gut wrenching in the early years.

The Renter once asked me if all I care about are my personal finances. After reading this boring post, what would you think?

And then I hear the Eddy Curry story:

Eddy Curry made a shade over $10 million this year as a member of the New York Knicks. Despite that enormous salary — and the fact that Curry has made more than $57 million in his nine-year career — the former No. 4 draft pick is seriously in debt. As the Associated Press reports, Curry defaulted on a $575,000 loan with an 85 percent interest rate, which can only happen in Nevada, and has been ordered to pay back $1.2 million to Allstar Capital Inc., the world's most ironic loan service.
However, Curry argues that he shouldn't have to pay off that debt, because he's spending too much money in other places. According to reports filed in the suit Curry's outgoing payments include:

• $30,000 a month for "household expenses.
• $17,000 a month to various relatives including his parents, sister and father-in-law.
• More than $1,000 a month for cable and satellite television.
• $207,000 a month in garnished wages that haven't been elaborated upon, but adds up to almost $2.5 million that Eddy Curry never sees over the course of a year.
• $350,000 to Juwan Howard.

Curry also owns 12 cars, three of which — a Rolls Royce convertible and two Land Rovers — may be taken by Allstar Capital, though Curry's lawyer says that they have reached "a mutually satisfactory resolution of the matter."


$1,000 for cable? What, does he have Tiger come over and order every porn available?

No comments: