Riches to Rags story

[swamp]

www.cnbc.com/2019/11/13/ryan-lochte-went-from-earning-millions-to-living-paycheck-to-paycheck.html?utm_content=Main&utm_medium=Social&utm_source=Facebook&fbclid=IwAR2PDQtULf6IQz1ig3Pt7pDqggbEyfC_ycuPhoWKHhWlt5L_BxYgMR-OL3c#Echobox=1636727695

Ryan Lochte is a giant douche.

[steph08]

He has never seemed like the sharpest tool in the shed, but that fake Rio story was just ridiculous.

[Cheesy FL-Vol]

I didn’t read the article, but a case of stupid is as stupid does?

[Deleted]

Yes, it's pretty sad. It happens to a lot of professional athletes, though- more money than they've ever seen in their lives, no financial role models and plenty of "friends" to help them spend it. My nephew swam with Ryan Lochte (not as big a name and no, he's not Michael Phelps) but I think it helped that his dad, my brother, is a CPA. DN married a wonderful young woman a few years ago, they also have 2 kids and both have good jobs. DN also got a real college education, too.

[raeoflyte]

I can't imagine what it would be like to squander that much money. It's so expensive to get to the Olympics, so you'd think that there'd be some concept of budgeting.

[TheOtherMe]

The mother of an NBA player worked in the Political Science Department at Iowa State when her son was drafted in to the NBA.  They knew it was coming so she had studied to be a financial advisor.  She only works for her son.  She quit her job at Iowa State and every penny he makes goes through her and he is on an allowance.  She said he will have money for his future.

[Rukh O'Rorke]

Nov 29, 2021 17:14:44 GMT -5 TheOtherMe said:

The mother of an NBA player worked in the Political Science Department at Iowa State when her son was drafted in to the NBA.  They knew it was coming so she had studied to be a financial advisor.  She only works for her son.  She quit her job at Iowa State and every penny he makes goes through her and he is on an allowance.  She said he will have money for his future.

I actually think that is kind of sad. 

[Deleted]

Nov 29, 2021 17:14:44 GMT -5 TheOtherMe said:

The mother of an NBA player worked in the Political Science Department at Iowa State when her son was drafted in to the NBA.  They knew it was coming so she had studied to be a financial advisor.  She only works for her son.  She quit her job at Iowa State and every penny he makes goes through her and he is on an allowance.  She said he will have money for his future.

I love stories like that.  I saw UBS webcast directed to women called "Own Your Wealth" and two of the featured women were Lisa Leslie, a former pro basketball player who now owns a team, and Paulina Porozhkova, the former Revlon supermodel.  Lisa Leslie went back to college and got an MBA so she could learn to manage her money.  Paulina Porozhkova married Rick Ocasek of The Cars while she was making $5-7 million a year from Revlon, which she put into their common accounts.  She half-listened to his summaries of discussions with their advisor.  He spent most of it and when they separated he wrote her out of his will.  A spouse can be disowned only in cases of abandonment (most states allow a surviving spouse to "take against the will" and get a default 2/3 of the estate).  Somehow that stood up in court even though she was the one who found him dead when she brought him his morning coffee.  I think she got the house.  She's 50, still drop-dead gorgeous but says her 2 main talents are looking good in clothes and fending off the advances of (amorous) men.

This is why I want my grandchildren to learn how to manage money, starting with very small sums.

[swamp]

Nov 29, 2021 17:53:23 GMT -5 Rukh O'Rorke said:

Nov 29, 2021 17:14:44 GMT -5 TheOtherMe said:

The mother of an NBA player worked in the Political Science Department at Iowa State when her son was drafted in to the NBA.  They knew it was coming so she had studied to be a financial advisor.  She only works for her son.  She quit her job at Iowa State and every penny he makes goes through her and he is on an allowance.  She said he will have money for his future.

I actually think that is kind of sad. 

Me too.  When is he going to grow up and learn how to manage his own money? 

[swamp]

Nov 29, 2021 16:08:41 GMT -5 @athena53 said:

Yes, it's pretty sad. It happens to a lot of professional athletes, though- more money than they've ever seen in their lives, no financial role models and plenty of "friends" to help them spend it. My nephew swam with Ryan Lochte (not as big a name and no, he's not Michael Phelps) but I think it helped that his dad, my brother, is a CPA. DN married a wonderful young woman a few years ago, they also have 2 kids and both have good jobs. DN also got a real college education, too.

I read somewhere Lochte married a playboy model who wasn’t willing to scale down her life style when it became necessary. 

[grumpyhermit]

Nov 29, 2021 17:53:23 GMT -5 Rukh O'Rorke said:

Nov 29, 2021 17:14:44 GMT -5 TheOtherMe said:

The mother of an NBA player worked in the Political Science Department at Iowa State when her son was drafted in to the NBA.  They knew it was coming so she had studied to be a financial advisor.  She only works for her son.  She quit her job at Iowa State and every penny he makes goes through her and he is on an allowance.  She said he will have money for his future.

I actually think that is kind of sad. 

It also seems like a situation ripe for potential abuse/fraud. While it would be lovely to think we can fully trust our parents, there are so many instances of child actors/performers *cough* Brittney Spears *cough* where parents are taking advantage and fleecing their kids. 

[TheOtherMe]

In this case, I don't think that will happen.  She is still living in the home where she brought up her two children as a single mom.  Nothing fancy and still driving the old car.

She doesn't want him exploited by others.  I hope she helped him work on a budget for his allowance.

Remember I used to audit tax returns.  There are lots of professional athletes based in the Denver area.  Many of them were on allowances through their financial advisors.  The one that I didn't like was the one that had to turn in receipts to get reimbursed for his expenses.  

[Rukh O'Rorke]

Nov 29, 2021 19:41:08 GMT -5 grumpyhermit said:

Nov 29, 2021 17:53:23 GMT -5 Rukh O'Rorke said:

I actually think that is kind of sad. 

It also seems like a situation ripe for potential abuse/fraud. While it would be lovely to think we can fully trust our parents, there are so many instances of child actors/performers *cough* Brittney Spears *cough* where parents are taking advantage and fleecing their kids. 

Even aside from potential abuse - who hears their college student is going to be making a lot of money *in whatever manner* and then trains to take over their adult child's money management and quits their own job?

That anyone would think that way just reeks of fundmental dysfunction imo.

[raeoflyte]

Nov 29, 2021 23:59:52 GMT -5 Rukh O'Rorke said:

Nov 29, 2021 19:41:08 GMT -5 grumpyhermit said:

It also seems like a situation ripe for potential abuse/fraud. While it would be lovely to think we can fully trust our parents, there are so many instances of child actors/performers *cough* Brittney Spears *cough* where parents are taking advantage and fleecing their kids. 

Even aside from potential abuse - who hears their college student is going to be making a lot of money *in whatever manner* and then trains to take over their adult child's money management and quits their own job?

That anyone would think that way just reeks of fundmental dysfunction imo.

As long as the kid was on board and wanted a financial advisor, I can see it being less nefarious and a way they both support each other. Assuming a good relationship between them of course. If I'm going to pay someone to manage my finances, I'd rather pay my mom who is good with money and helped me get to this point of making millions in my 20's.

[TheOtherMe]

Nov 30, 2021 8:52:45 GMT -5 raeoflyte said:

Nov 29, 2021 23:59:52 GMT -5 Rukh O'Rorke said:

Even aside from potential abuse - who hears their college student is going to be making a lot of money *in whatever manner* and then trains to take over their adult child's money management and quits their own job?

That anyone would think that way just reeks of fundmental dysfunction imo.

As long as the kid was on board and wanted a financial advisor, I can see it being less nefarious and a way they both support each other. Assuming a good relationship between them of course. If I'm going to pay someone to manage my finances, I'd rather pay my mom who is good with money and helped me get to this point of making millions in my 20's.

This is what was happening in the situation I was talking about.  Mom was retirement age but loved her job.  When her son is home on breaks she takes him to the office to show him off because she talked about him from the time he and his sister were little until he got drafted.

He said she had supported him through all of his athletic endeavors making sure he played on travel teams, etc. when she really didn't have the money.

The sister was also athletic but doesn't have near the talent as her brother.

For a while she was going back to the office with no pay because she had so much knowledge and so much of it was in her head.

[gs11rmb]

Nov 29, 2021 18:53:26 GMT -5 swamp said:

Nov 29, 2021 17:53:23 GMT -5 Rukh O'Rorke said:

I actually think that is kind of sad. 

Me too.  When is he going to grow up and learn how to manage his own money? 

I kinda sorta agree with both of you but I doubt we'd have the same reaction if the financial advisor wasn't his mother.  If instead he paid a 3rd party firm to manage his money we'd be saying he was very sensible.

[raeoflyte]

Nov 30, 2021 9:19:54 GMT -5 gs11rmb said:

Nov 29, 2021 18:53:26 GMT -5 swamp said:

Me too.  When is he going to grow up and learn how to manage his own money? 

I kinda sorta agree with both of you but I doubt we'd have the same reaction if the financial advisor wasn't his mother.  If instead he paid a 3rd party firm to manage his money we'd be saying he was very sensible.

Especially when we're comparing it to a story of an athlete who wasted millions.

I kick myself for not being more responsible in my 20's. That we could have more options now if I'd been more disciplined then, but combined dh and were making under $60k back then. Sometimes a lot less.

I don't know if I could forgive myself for wasting what could amount to a lifetimes income.

[billisonboard]

Nov 29, 2021 18:53:26 GMT -5 swamp said:

Nov 29, 2021 17:53:23 GMT -5 Rukh O'Rorke said:

I actually think that is kind of sad. 

Me too.  When is he going to grow up and learn how to manage his own money? 

I think growing up is overrated. YMMV.

[Deleted]

Nov 30, 2021 9:19:54 GMT -5 gs11rmb said:

I kinda sorta agree with both of you but I doubt we'd have the same reaction if the financial advisor wasn't his mother.  If instead he paid a 3rd party firm to manage his money we'd be saying he was very sensible.

In the end, it also depends on the advisor, not the family relationship. There have been plenty of stories of "advisors" who have squandered people's fortunes, especially professional athletes and entertainers and others who might not have learned how to manage money. They've invested their clients' money in deals their buddies put together that failed, and sold them overpriced products that didn't perform as well as the market. They "help" them buy extravagant homes and yachts through other friends in the business who will make $$$ off the sales. Mom and the professionals can be good or bad. It sounds like Mom is doing OK in this case.

Oprah Winfrey has advised the newly-rich and famous to make sure that they personally sign every check that goes out of their accounts. I like that idea.

[Rukh O'Rorke]

Nov 30, 2021 8:52:45 GMT -5 raeoflyte said:

Nov 29, 2021 23:59:52 GMT -5 Rukh O'Rorke said:

Even aside from potential abuse - who hears their college student is going to be making a lot of money *in whatever manner* and then trains to take over their adult child's money management and quits their own job?

That anyone would think that way just reeks of fundmental dysfunction imo.

As long as the kid was on board and wanted a financial advisor, I can see it being less nefarious and a way they both support each other. Assuming a good relationship between them of course. If I'm going to pay someone to manage my finances, I'd rather pay my mom who is good with money and helped me get to this point of making millions in my 20's.

She is also blabbing the details about it to her coworkers. If I was paying someone to do it, I would expect that most information would be confidential, and I wouldn't publically appear on a client list without my permission.

I just think it's icky. 

Some informal advice, or help setting up accounts - sure. But this seem infantilizing to me, and blabbing the details to coworkers - completely unprofessional.

[Rukh O'Rorke]

Nov 30, 2021 9:46:50 GMT -5 billisonboard said:

Nov 29, 2021 18:53:26 GMT -5 swamp said:

Me too.  When is he going to grow up and learn how to manage his own money? 

I think growing up is overrated. YMMV.

Brittany disagrees.

Sure - being an adult can be a strain, but the alternatives aren't really that pretty either.

[TheOtherMe]

The people in the office know no other details than what I have shared.  She isn't blabbing details.  

Apparently you are not familiar with all of the professional athletes who have come from poverty or working class homes and toss all the money away during their playing years.  Some have ended up homeless or bankrupt, etc.  This will not be the case in this family.

You don't have to agree.  I know I wasted a lot of money at that age and I wasn't talking about millions of dollars.  

Handle your kids your way Rukh O'Rorke and this family will handle theirs.  

I haven't heard anything about her being her son's financial advisor for a few years now.  I hope it's going well for both of them.  If it isn't, I hope he has fired her.

NBA careers do not last that many years.  His mother wants him to be able to live off this big money for many years.  

[Rukh O'Rorke]

Nov 30, 2021 16:32:35 GMT -5 TheOtherMe said:

The people in the office know no other details than what I have shared.  She isn't blabbing details.  

Apparently you are not familiar with all of the professional athletes who have come from poverty or working class homes and toss all the money away during their playing years.  Some have ended up homeless or bankrupt, etc.  This will not be the case in this family.

You don't have to agree.  I know I wasted a lot of money at that age and I wasn't talking about millions of dollars.  

Handle your kids your way Rukh O'Rorke and this family will handle theirs.  

I haven't heard anything about her being her son's financial advisor for a few years now.  I hope it's going well for both of them.  If it isn't, I hope he has fired her.

NBA careers do not last that many years.  His mother wants him to be able to live off this big money for many years.  

I'm still calling this icky.

[Miss Tequila]

Nov 30, 2021 16:32:35 GMT -5 TheOtherMe said:

The people in the office know no other details than what I have shared.  She isn't blabbing details.  

Apparently you are not familiar with all of the professional athletes who have come from poverty or working class homes and toss all the money away during their playing years.  Some have ended up homeless or bankrupt, etc.  This will not be the case in this family.

You don't have to agree.  I know I wasted a lot of money at that age and I wasn't talking about millions of dollars.  

Handle your kids your way Rukh O'Rorke and this family will handle theirs.  

I haven't heard anything about her being her son's financial advisor for a few years now.  I hope it's going well for both of them.  If it isn't, I hope he has fired her.

NBA careers do not last that many years.  His mother wants him to be able to live off this big money for many years.  

My oldest is very bright and makes very good money for her age. She is the polar opposite of me. She has more $2k purses and red bottom shoes than I can even recall. She has finally asked me to step in and help her budget/invest for her future. She knows me and knows I would never do anything if it was not in her best interest.

My daughter knows her strengths and her weaknesses. That is why she asked me for help. And she only made $90k last year. I can’t imagine the help she would need if she made millions.

[Deleted]

Nov 30, 2021 18:38:19 GMT -5 Miss Tequila said:

My oldest is very bright and makes very good money for her age. She is the polar opposite of me. She has more $2k purses and red bottom shoes than I can even recall. She has finally asked me to step in and help her budget/invest for her future. She knows me and knows I would never do anything if it was not in her best interest.

My daughter knows her strengths and her weaknesses. That is why she asked me for help.

It takes wisdom to know your limitations. When DS and DBIL married, DBIL, who came form a very dysfunctional family, told her not to let him know of any savings accounts she'd set up. He figured it would just be a temptation to find something to spend the money on.

They've been happily married for 45 years and now he's well aware of what they have (low 7 figures) and has a hand in managing the investments. People can change but he needed less autonomy in the beginning and he was smart enough to know that.

[souldoubt]

On the face of it the mom doing that may sound weird but I think context is important.  Per the ESPN 30 for 30 episode 'Broke' 78% of NFL players were broke within 2 years of leaving the league.  In the NBA the rates were similar and one of the more well known stories is that of Antoine Walker who made over $100M in his career, last played in the NBA in 2008 and filed for BK in 2010.  On the plus side those statistics and stories have made the leagues realize they need to better educate guys coming into the league which they they now do.  This includes current and past players coming in to talk to the rookies to tell them how they have no idea what they're in for.  Some of these guys don't just come from nothing they grew up very poor then come into a lot of money fast and they've got friends and family (some they didn't know they had) coming out of the woodwork hitting them up. 

Like many 9 to 5'ers lifestyle creep happens but professional athletes have very short careers and most are retired by their mid 30's if they're lucky to make it that long.  Total first world problem but imagine being in your mid 30's and the thing you've lived and breathed for decades is over and not by your choice.  It's not like most athletes have had a lot of time to put into other ventures during their careers.  There are firms out there that specialize in handling athletes finances but they manage money and ultimately if a client wants their money they get it.  Going to mom for your money for a lavish lifestyle and stuff you don't really need is a different dynamic.  At the same time there's risk there because yes mom, other family or friends can take advantage but that isn't always the case.   

[raeoflyte]

I think maybe it's the idea that mom is putting adult son on an allowance that triggers the harshest reactions which could indicate a problem or could be verbiage. Anyone who budgets has themselves on an allowance but don't usually refer to it that way.

[Rukh O'Rorke]

Nov 30, 2021 19:39:11 GMT -5 raeoflyte said:

I think maybe it's the idea that mom is putting adult son on an allowance that triggers the harshest reactions which could indicate a problem or could be verbiage. Anyone who budgets has themselves on an allowance but don't usually refer to it that way.

I think you are right. It was presented as if the son was very passive with mom deciding to shoehorn her way into the drivers seat and with an assumption that of course the son wasn't able to handle any of this and this is a good thing for him with mom calling the shots, kind of like a toddler being made a peanut butter sandwich without asking what they wanted for lunch. Of course you don't give toddlers too many choices. But at some point you do start asking what they'd like to eat, and then at another point, they do start making their own lunches.

And then blabbing the details of the arrangement seemed like she was boasting about how in charge she was of her son's finances. 

[justme]

My big take away was I should have tried harder to be good at a sport because I have a medical reason to get b12 that would have helped me. Lol

[NancysSummerSip]

Nov 29, 2021 15:34:25 GMT -5 swamp said:

www.cnbc.com/2019/11/13/ryan-lochte-went-from-earning-millions-to-living-paycheck-to-paycheck.html?utm_content=Main&utm_medium=Social&utm_source=Facebook&fbclid=IwAR2PDQtULf6IQz1ig3Pt7pDqggbEyfC_ycuPhoWKHhWlt5L_BxYgMR-OL3c#Echobox=1636727695

Ryan Lochte is a giant douche.

Got that right. He needs to drop out of sight and redeem himself quietly. And stay out of Olympic competition. Relatively speaking, he is too old for that, when the competition is 15 and 16-year-olds. He could still swim Pro Series, if he really worked at it. Guys and gals in their thirties still do -  Nathan Adrian, Anthony Ervin, Matt Grievers and Amanda Weir, to name a few. The series pays well, and he could make decent money with sponsorships, too. But nobody wants him and his baggage. And pooh-pooh on the 1,800 square foot apartment. OK, it is a family of four. The average apartment size in the US is 882 sq feet according to this website: www.homestratosphere.com/average-size-apartment/.