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Archive for the ‘Experience’ Category

The worst financial decision I ever made..(5)

Posted by andriantoangkadirjo85 on November 22, 2011

Huguette Clark, in 1930               (1906-2011)

Hi guys,

I kept posting articles about how people spend their money like drunken sailor as they turned millions into zero..In one of my postings, click here, it took only 20 years to spend 1 billion dollars before filling for bankruptcy. Very ridiculous right ? Here’s just another story about Huguette Clark, a copper tycoon’s daughter with a taste for exquisite French dolls, baronial homes and solitude, spend $170 million since 1996–or $1 million a month–until her death at 104 years old in 2011. Check it out..

Huguette Marcelle Clark

The youngest of seven children, Huguette Marcelle Clark was a daughter of a scoundrel. Her father, William Andrews Clark, was born in 1839 to a threadbare Pennsylvania family. Footloose and ambitious, he made his way to the MontanaTerritory, where, in the early 1870s, he struck copper, and with it his fortune.

William Andrews Clark           (1839-1925)

In the late 1890s, desiring a Senate seat, Mr. Clark went out and bought one, at least temporarily. By this time Montana was a state; under the United States Constitution, senators of the period were elected by their state legislatures. Mr. Clark, a Democrat, was reported to have loosed a cataract of thousand-dollar bills on theMontana statehouse, to no small effect. He took up his Senate seat in December 1899.

He vacated the seat in May 1900 as the Senate weighed a resolution to void his election. Later returned to office by the legislature, he served one term, from 1901 to 1907.

By this time, Senator Clark was one of the richest men inAmerica. In 1907, The New York Times estimated his fortune at $150 million — roughly $3 billion today. Besides copper, his interests included railroads, real estate, lumber, banking, cattle, sugar beets and gold.

His first wife bore five children, four of whom lived to adulthood. After her death in 1893, he took up with his teenage ward, Anna La Chapelle. They apparently married in 1901 and had two daughters, Andrée, born in 1902, and Huguette, born inParison June 9, 1906. At Huguette’s birth, her mother was 28, her father 67.

Huguette Clark, right, with her father, William Andrews Clark, and older sister, Andrée, circa 1915, when Huguette was about 9.

William Clark (middle) and daughter Huguette (right)

After leaving the Senate, Mr. Clark settled his family inNew York, erecting a mansion at962 Fifth Avenue, at77th Street, that was considered improvident even in an excessive age. Its 121 rooms included 31 bathrooms, 4 art galleries and a theater; there was also a swimming pool and a thundering pipe organ. It was there, interspersed with stays inCaliforniaandFrance, that Huguette grew up.

The 121-room mansion her father built on Fifth Avenue.

In 1919, Andrée Clark, Huguette’s sister, died of meningitis at 16; by all accounts her death shook Huguette deeply. Senator Clark died in 1925; many of the masterworks he owned now make up the William A. Clark Collection at the Corcoran Gallery of Art inWashington.

Huguette graduated from Miss Spence’s School (now the Spence School) in Manhattan and was introduced to society in 1926. Not long after her father’s death, she and her mother moved to an elegant apartment building at907 Fifth Avenue, at72nd Street.

Engagement announcement for Huguette Clark and William Gower in New York

In 1928, at 22, she married William MacDonald Gower, the son of a business associate of her father’s. The union lasted nine months: she charged desertion; he maintained the marriage was unconsummated, according to a 1941 biography of the family, “The Clarks, an American Phenomenon,” by William D. Mangam. The couple were formally divorced in 1930; she chose to be known afterward as Mrs. Huguette Clark.

By the late 1930s, Mrs. Clark had disappeared from the society pages. Most if not all of her siblings had died; she lived with her mother at907 Fifth Avenue, painting and playing the harp. Her mother died there in 1963.

Huguette spent most of her life in this fantastic apartment building adjacent to Central Park

For the quarter-century that followed, Mrs. Clark lived in the apartment in near solitude, amid a profusion of dollhouses and their occupants. She ate austere lunches of crackers and sardines and watched television, most avidly “The Flintstones.” A housekeeper kept the dolls’ dresses impeccably ironed.

Over the years she developed a distrust of outsiders, including her family, because she thought they were after her money. She preferred to conduct all of her conversations in French so that others were unlikely to understand the discussion. And so ran the rhythm of Mrs. Clark’s life until the day she left for the hospital and checked herself in.

In February 2010, Clark became the subject of a series of reports on msnbc.com, which said caretakers at her three residences had not seen her in decades, and that her palatial estates in Santa Barbara, California, and New Canaan, Connecticut, had lain empty throughout that time, although the houses and their extensive grounds were meticulously maintained by their staff. Msnbc.com investigative reporter Bill Dedman later determined that she was in the care of a New York City hospital, and that some of her personal possessions had been quietly sold. Possessions sold included a rare 1709 violin called La Pucelle (or The Virgin) made by Antonio Stradivari and an 1882 Pierre-Auguste Renoir painting entitled In the Roses. Building staff reported that she was frail but not ill when Clark left her Fifth Avenue co-op in an ambulance in 1988. Initially she took up residence at Mount Sinai Medical Center to be more comfortable but was later transferred to another hospital in Manhattan.

Clark died at Beth Israel Medical Center on the morning of May 24, 2011, two weeks short of her 105th birthday. She had resided at the hospital for more than 20 years, leaving vacant but meticulously tended her grand homes inSanta Barbara,New Canaan,Conn., andNew York City.

So, how Huguette Clark spent her fortune  all without leaving hospital room ?

Court documents filed in a legal battle over the $400 million estate of Huguette Clark shed light on how the reclusive and eccentric mining heiress spent her fortune. Clark’s relatives–the descendants of her father, William Clark, a copper and banking tycoon andU.S. senator who was born before the Mexican War of 1840–are expected soon to challenge her will, which cut out her family entirely.

Among the revelations in the court documents, MSNBC reports:

• Since 1996, $170 million–or $1 million a month–was spent fromClark’s personal account or from an account controlled by her lawyer and accountant, who held legal power of attorney during that period. Both the attorney, Wallace Bock, and the accountant, Irving Kamsler, are reportedly being investigated by law enforcement for their handling of the fortune.

• Au Nain Bleu, a doll and toy shop inParis, was paid $2.5 million between 1997 and 2006. A friend of Clark’s said her dolls were “her closest companions.”

• Theriault’s, an auctioneer of dolls, received $729,000 between 1997 and 2009.

• Clark paid a combined $60 million to the IRS and in New Yorkstate income taxes, since 1996.

• A charity that built a controversial security system for Jewish settlers in theWest Bankreceived $1.85 million in donations. Bock’s daughter lives in the settlement protected by the system.

• Bock’s law firm received around $250,000 a year, and Kamsler around $90,000. If Clark’s will is allowed to stand, both men would receive much more–more than $8 million–as beneficiaries and as executors of the estate.

• Clark’s private nurse, Hadasah Peri, received a $5 million lump-sum payment, and around $131,000 a year.

• Beth Israel Medical Center inNew York, where Clarklived even though for most of that time she wasn’t sick, received about $4.9 million since 1997, or around $1,000 a day.

• Clark’s closest friend, Suzanne Pierre, who served as her social secretary, received almost $12 million.

• Clarkspent $3.75 million on taxes and co-op fees to maintain her unoccupied 15,000-square-footFifth Avenueapartment. She also paid more than $100,000 a year on property taxes for her New Canaan,Conn.country home.

Both Bock and Kamsler have declined to comment on their management of their accounts, but their representatives have said the men acted honorably in complying with Clark’s wishes.

In the end, perhaps Mrs. Clark’s fondest wish — simply to vanish — has been realized, at least to an extent. Some of the most conspicuous artifacts of her former life are gone, chief among them the family’s Fifth Avenue mansion, which was razed after her father’s death.

Her Connecticut estate is on the market for $24 million. On the Web site advertising it for sale, photographs show its vast gracious rooms hauntingly empty.

Huguette has never spent a single night in the 12,766 square foot property

The home has been on the market since 2005, now with an asking price of $24 million

Huguette bought the home in 1952

And it has been empty for 57 years

andriantoangkadirjo85 bottom line 

– It’s amazing how fast people can run through $ million these days..

– Never ever thought having millions dollar bucks will surely make you and fam live happily ..

– Be thankful, whatever you & your fam’s condition right now,  surely the key to live happily in this world..

Posted in Experience | Tagged: , , , , , , , | 1 Comment »

GOLD SCAMMER..PONZI SCHEME ..(2)

Posted by andriantoangkadirjo85 on November 1, 2011

Hi,

In my previous post, click here, I wrote that anyone can be taken by this Ponzi Scheme..no exception. Each scheme seems to have their own target, ‘passion group’, as they called it. The people who say they would never get victimized are also in ‘passion group’, ’cause they will use your confidence against you and you would fall for it. Man more so than women. Women are actually harder to victimized because their ego and self-confidence aren’t as likely to get the best of them. And woman like to ask questions and talk about things . Ponzi Schemers hate this. Men assume they know everything. It is so easy to take a man.. THIS IS ABSOLUTELY TRUE.. You can continue reading and note how’s the telemarketers of this scammers company worked their victims.

This time, I post about PONZI SCHEME case in the form of GOLD SCAMMER.. Here’s the story :

Owner of Three Precious Metals Firms Jamie Campany, Charged in $25 Million Precious Metals Investment Scheme

jamie_campany

Jamie Campany, 47, of Palm Beach County, has been charged in a Criminal Information with multiple counts of mail and wire fraud. The Information charges Campany with five counts of mail fraud and four counts of wire fraud, in violation of Title 18, United States Code, Sections 1341 and 1343, respectively.

Campany was the owner of three investment firms specializing in purported gold, silver, platinum, and palladium bullion purchases on behalf of individual clients. Among his companies were Global Bullion Exchange, LLC (“Global”), in Lake Worth, Florida, and various affiliated licensee businesses throughout Palm Beach, Broward and Miami-Dade counties and other locations outside of Florida. In addition to Global, Campany owned and operated two predecessor firms, Barclay Trading Group, Inc. (“Barclay”) and The Bullion Group, Inc., both with offices in West Palm Beach.

Campany’s three businesses conducted a sophisticated telemarketing operation to solicit investors to purchase precious metal bullion using purported “leverage” financing. These same investors were led to believe that they would need only to provide a fraction of the total cost of the purchased metals, with the remainder of the purchase price to be covered by margin-type financing, which would purportedly be extended to the investor by a purported “clearing firm.” Many of the firms offer clients a chance to buy precious metals and have them delivered to their homes or stored in a secured location. Most choose storage. Customers are told they can buy “on leverage” — meaning they can obtain financing so they can purchase more metals. For example, a customer could put down $1,000 to buy $5,000 worth of gold.

From about September 2006 to April 2007 when Barclay was succeeded by Global, the purported “clearing firm” with which Barclay had initially associated began delaying and ultimately ignoring requests by Barclay’s customers to sell their precious metals investments. As a result, the unsatisfied clients began to complain and threatened Barclay with litigation. In addition, the clearing firm’s failure to sell the clients’ holdings left Barclay insolvent. In an attempt to prevent further complaints, litigation, and possible governmental enforcement action, Barclay began to satisfy its clients’ requests for liquidation of their investments by making payments to these clients using funds it had received from newer investors.

After Global succeeded Barclay, Global continued this same Ponzi strategy. Global thereafter used Diversified Investment Group, Inc. (“Diversified”), a shell company controlled by defendant Campany, as its purported “clearing firm.”   In fact, no bullion was purchased, even though clients paid substantial commissions and fees totaling approximately 18% of the total purported value of the metal allegedly purchased.

Campany also misrepresented to the investors that their holdings had been financed through so-called “margin” credit. Thus, the investors were charged substantial interest on these non-existent “loans” and were subjected to periodic false “margin calls” during market declines. A margin call required investors to supply additional funds upon demand to increase their account equity levels. Moreover, investors who could not comply with such “margin calls” were informed that their investment positions had been forcibly liquidated and taken by Diversified as a secured creditor.

In a recent litigation filed in Miami-Dade Circuit Court by a court-appointed assignee, it is estimated that more than 1,400 investors were defrauded by Campany’s scheme out of more than $25 million. Campany faces a maximum sentence of twenty years’ imprisonment and a maximum $250,000.00 fine for each of the Information’s nine counts. A federal judge next month will sentence the man who authorities say took advantage of the boominggold market, by scamming more than 1,400 people out of tens of millions of dollars.

But before he goes to prison, the mastermind of the scheme, Jamie Campany, sat down with ABC News’ Chief Investigative Correspondent Brian Ross to reveal how he tricked his hundreds of victims out of nearly $30 million.

The most promising victims of the gold scam, Campany said, were spotted through Google earthsatellite images. Campany and his team matched phone leads to addresses to find victims with the biggest homes, and therefore the most money to invest in gold and silver. But in reality, there was no gold despite the legitimate-looking transaction papers from the Global Bullion Exchange — a company that Campany said was “completely bogus.”

The Global Bullion Exchange was an invention of Campany’s, who took ABC News back to the now-empty telephone boiler room inFlorida where his telemarketers worked their victims, mostly upper middle class business people who Campany said let their egos get the best of them. 

“Quite frankly, little old ladies are a lot more astute and a lot more skeptical about making investments with people they don’t know,” he said.

The pitch worked off the falling stock market and the rising price of gold as Campany recalled his lines for ABC News.

“Come on. Everybody knows what’s going on in the markets today. Are you living in a cave?” he would say.

There was an answer for everything — even if victim’s protested by saying they didn’t have any money.

“Sure you do,” Campany or one of his telemarketers would say. “You’ve got a 401k, you have a stock portfolio… You have dead dogs that are not performing.”

Dave Blomberg ofHialeah,Fla., said he was caught up in the scam after he received those calls.

“I did end up giving them a considerable amount of money, cause I thought if I invested more, I would get the money back,” Blomberg said.

He never will, losing $75,000, and nor will the other investors. By the time the scheme collapsed and this place was shut down, all the money was long gone.

When the investment scheme collapsed in December 2009, more than 1,400 investors were out at least $29.5 million, according to court records. Most of that money had been raised by Lake-Worth based Global Bullion Exchange, which was formed by Campany in 2007. A Sun-Sentinel investigation documented that the majority of the firm’s 20 largest clients were senior citizens, and most of the money raised by the business in 2007 and 2008 went to brokers’ commissions.

As part of his plea agreement, Campany acknowledged that he took Global Bullion Exchange customers’ money with no intent to ever buy the promised precious metals.

“I think about it every day. These people have to live with the pain that I caused them,” Campany said. “It’s going to hurt them for the rest of their lives. Hopefully this is one way I can stop it from happening to anybody else.”

andriantoangkadirjo85 bottom line

– Global Bullion Exchange was one of a wave of more than 45 precious metals firms that set up shop in Broward andPalm Beachcounties within the last four years, offering gold, silver and palladium via heavily financed transactions. In an environment devoid of federal licensing or reporting requirements, convicted felons and people with checkered regulatory pasts were able to open businesses with little — if any — scrutiny, a March investigation by the Sun-Sentinel found.

– A new law took effect in July that gives the U.S. Commodity Futures Trading Commission oversight of precious metals transactions when the metals aren’t physically delivered to the customer or a third-party location within 28 days.

Posted in Experience | Tagged: , , | 1 Comment »

The worst financial decision I ever made..(4)

Posted by andriantoangkadirjo85 on July 18, 2011

Is Tiger Woods Running Out of Money?  This just the title of an article that quickly drew my attention. How could this be? It is for real or issue? After making some surfing, here’s just the story ..

Wife ‘used golf club’ after Tiger Woods car crash (Saturday, 28 November 2009)

World number one golfer Tiger Woods has been released from hospital after receiving treatment following a car accident in Florida on Friday. Woods’s car reportedly hit a fire hydrant and tree as he left his drive at 0225 local time (0725 GMT).

Chief Daniel Saylor of the Windermere Police Department says the golfer’s wife removed Woods from the car after breaking into the rear window with a golf club.

Tiger Woods admits ‘I have let my family down’ (Wednesday, 2 December 2009)

Golf star Tiger Woods has apologised to his family, amid continuing speculation about his private life following a car crash last week. “I have let my family down and I regret those transgressions with all of my heart,” he said in a statement, without elaborating further.

“I have not been true to my values and the behaviour my family deserves.”

Woods was found bleeding and semi-conscious after his car hit a tree and fire hydrant outside his Florida home. He was charged with careless driving, which carries a $164 (£98) fine and four points on his driving record.

The 14-time major champion has been married to his Swedish wife Elin for five years and has two young children.

He denied rumours that physical violence played any role in the incident, saying they were “utterly false and malicious”. In his statement, he also said: “Personal sins should not require press releases and problems within a family shouldn’t have to mean public confessions. “I will strive to be a better person and the husband and father that my family deserves.”

His statement follows a story in aUSgossip magazine in which aLos Angelescocktail waitress claims to have had a 31-month affair with Woods.

Us Weekly magazine posted online an audio clip of what was purported to be Tiger Woods begging the 24-year-old woman to take her name off her voicemail greeting in order to hide their affair. The caller’s identity has not been verified.

In his statement, Woods also appealed for privacy for his family. “Although I am a well-known person and have made my career as a professional athlete, I have been dismayed to realise the full extent of what tabloid scrutiny really means,” he said in the statement. “I am dealing with my behaviour and personal failings behind closed doors with my family. Those feelings should be shared by us alone.” The golfer also offered a “profound apology” to his supporters.

Woods has become an international sporting icon since winning his first major in 1997 at the age of 21.

The 33-year-old American, who is just four short of equalling Jack Nicklaus’s record of 18 major victories, is regarded as one of the world’s all-time great golfers. He has been fiercely protective of his personal life, and his clean-cut image has helped him amass a fortune through product endorsements and appearance fees.

– Will sponsors back tarnished Tiger Woods? ( Thursday, 3 December 2009)

Tiger Woods’ extraordinary golfing prowess has made him the wealthiest sportsman in the world – but behind every great sportsman these days, there is always an array of big businesses.

Nike has been Woods’ biggest sponsor since the start of his career, signing its first contract with him as long ago as 1996. Since then, other major companies have added their endorsements, including the Gatorade drinks brand and Gillette razors.

In fact, despite being the world’s number one golfer, Woods makes far more money off the green than on it. Last year, he earned $23m (£13.8m) from golf tournaments – a figure dwarfed by the more than $100m that his various sponsorship deals brought in. So with his previously impeccable image now somewhat tarnished, amid continuing speculation about his private life following last week’s car crash, his income is hugely dependent on how those sponsors are likely to react.

In the long term, it is unclear whether the 33-year-old star’s apology to his family for his “transgressions” will restore his clean-cut reputation or simply add to the perception of guilt. But so far, the picture is mixed. Nike, Pepsico, TLC Vision and Electronic Arts all issued statements on Wednesday to the effect that their relationship with Woods was unchanged. On Monday, Gatorade wished Woods well as he recovers from his injuries and said: “Our partnership with Tiger continues.”Jet plane rental firm Netjets, a subsidiary of billionaire Warren Buffet’s Berkshire Hathaway investment firm, went further, saying: “Tiger Woods is one of the premiere athletes in the world and we are proud to have him involved with Netjets.”

Others sound less committed. Gillette says its marketing strategy is unchanged, but has left open what might happen in the future. More ominously, however, several other sponsors have yet to pronounce at all on the matter. This week, companies such as watchmaker Tag Heuer and IT firm Accenture have continued to run advertising campaigns in theUSmedia featuring Woods.

But they, and other big backers including telecoms giant AT&T, have so far been “unavailable for comment” on whether he still enjoys their full confidence.

– Tiger Woods takes break from golf  (Saturday, 12 December 2009)

Tiger Woods is taking an indefinite break from professional golf to tackle problems in his private life. In a statement on his website, he said he was aware of the disappointment “my infidelity” had caused to his family. The world’s top golfer said he wanted to “try to repair the damage done” and asked for privacy.

Woods’ biggest sponsor, Nike, said it would continue to stand by him, but his agent said it was too early to discuss the impact on any other business deals.

On his website, Woods said he was “profoundly sorry” and asked for forgiveness. “What’s most important now is that my family has the time, privacy, and safe haven we will need for personal healing.”I would like to ask everyone, including my fans, the good people at my foundation, business partners, the PGA Tour, and my fellow competitors, for their understanding,” the 33-year-old said. “After much soul searching, I have decided to take an indefinite break from professional golf. I need to focus my attention on being a better husband, father, and person.”

In a separate statement, he also indicated he would be taking some time off from his responsibilities with the Tiger Woods Foundation – a charity he set up with his late father to help young people. He said he knew his staff would continue efforts to maintain the foundation’s work during his “absence”.

In a statement, Nike said: “Tiger has been part of Nike for more than a decade.”Woods has been married to his wife, Elin, for five years and they have a two-year-old daughter and 10-month-old son. “He is the best golfer in the world and one of the greatest athletes of his era. We look forward to his return to golf.” “He and his family have Nike’s full support.”

Woods’ agent, Mark Steinberg, also voiced his support for the golfer’s decision but said it was “premature” to discuss particular business deals. “Suffice it to say, we have had thoughtful conversations and his sponsors have been open to a solution-oriented dialogue,” he said. “Of course, each sponsor has unique considerations and ultimately the decisions they make we would fully understand and accept.”

In a statement the Professional Golfers Association (PGA) Tour said it supported the golfer’s decision. Tour commissioner Tim Finchem said the celebrity’s “priorities are where they need to be”.

In London, Woods’ lawyers obtained an injunction on Friday preventing certain information purportedly about him being published.”We look forward to Tiger’s return to the PGA Tour when he determines the time is right for him,” he added. It was granted by a judge at the High Court, and concerns alleged information which cannot be disclosed for legal reasons.

Last week, Woods apologised to his family for “transgressions”. Speculation about his private life has been intense since he was involved in a car crash outside hisFloridahome two weeks ago. Newspaper allegations followed about extra-marital affairs.

Woods has not been seen in public since the accident, in which his car hit a tree and fire hydrant. The golfer, who was found bleeding and semi-conscious, was later charged with careless driving, which carries a $164 (£98) fine and four points on his driving record.

Woods has become an international sporting icon since winning his first major in 1997 at the age of 21. He is just four short of equalling Jack Nicklaus’s record of 18 major victories and is regarded as one of the world’s all-time great golfers.

– Tiger Woods breaks silence with apology (Friday, 19 February 2010)

Golfer Tiger Woods has made several heartfelt apologies in his first public appearance since revelations surfaced about his private life. He took an indefinite break from the sport last year after admitting being unfaithful to his wife.

– Tiger Woods: Celebrity under pressure (Friday, 19 February 2010)

Tiger Woods is arguably the best-known sportsman of his generation and, before he announced he was taking a break from the sport amid claims about his private life, he was on his way to becoming the most successful golfer of all time.

The 34-year-old American has won 14 major titles and is just four short of equalling Jack Nicklaus’s record of 18 major victories.

As the most successful black player in a traditionally white sport, Mr Woods has been credited with boosting interest in the game, raising TV audiences, and bringing greater wealth to the sport in prize money and sponsorship.

He was born on 30 December 1975 inCypress,California, the son of retired US Army lieutenant colonel Earl Woods and his Thai-born wife Kultida.

A golf prodigy, he featured on TV putting against Bob Hope aged two, and shot 48 for nine holes aged three.Originally named “Eldrick” he was nicknamed “Tiger” after a Vietnamese soldier friend of his father. After a glittering amateur career, he turned pro in 1996 and backed up his Masters win with victory in the USPGA Championship in 1999. In 1996, he and his father set up the Tiger Woods Foundation which is dedicated to helping disadvantaged children.

He won his first major – the Masters – in 1997 by a record 12 strokes, becoming the prestigious tournament’s youngest winner in history at 21 years three months and 15 days. Later that year he became world number one – briefly – for the first time and he would later go on to hold the top spot for all 52 weeks of a year a record eight times.

He has now been world number one since 12 June 2005, and through endorsements and appearance fees earns an estimated $100m (£62.5m) a year. In September 2009, Forbes Magazine declared him to be the first athlete in history to earn $1bn in the course of his sporting career.

In 2000, he won the US Open title, by a record 15 strokes atPebbleBeach, and the Open Championship atSt Andrews. He clinched the 2001 Masters to hold all four major titles at the same time, a feat dubbed the “Tiger Slam”.In doing so he became only the fifth player – the youngest – to complete a career Grand Slam of all major titles.

In 2002 he remodelled his swing, prompting claims of a slump when he did not win a major title until the 2005 Masters, his fourth victory atAugusta. In 2006, he missed the first cut in 38 majors as a professional at the US Open at Winged Foot following a nine-week lay-off after the death of his father. He went on to clinch the Open Championship at Hoylake and, amid emotional scenes, broke down in tears as he dedicated the win to his father. In April 2008 he underwent a third operation on a troublesome left knee. But the absence of this sporting legend resulted inUStelevision ratings dropping by 50%. He returned to win the US Open at Torrey Pines after a 18-hole play-off, despite being crippled by knee pain.

In 2005, Mr Woods married Swedish girlfriend Elin Nordegren, who he met during the 2001 Open Championship. In 2006 she gave birth to the couple’s first child, daughter Sam Alexis, and in February 2009 their second child Charlie Axel was born.

However, speculation about Tiger Woods’s private life has been intense since he was involved in a car crash outside hisFloridahome in November.

He broke a long silence on 19 February to apologise for cheating on his wife.Newspaper allegations followed about extra-marital affairs.

“I was unfaithful, I had affairs and I cheated. What I did was unacceptable,” he said in a statement televised live around the world.

He said he was undergoing therapy and that he would return to gold, but could not say when.

The golfer, who was found bleeding and semi-conscious, after hitting a tree and a fire hydrant, was later charged with careless driving.

He pulled out of the Chevron World Challenge, a tournament he had hosted for the past nine years.

Many of Mr Woods’s numerous sponsors – including Nike, Gillette, Tag Heuer and NetJets have stood by him. But Accenture and AT&T dropped him as a spokesman and soft drink brand Gatorade axed a drink endorsed by the sports star. Gatorade said it was not related to revelations about the golfer’s private life.

– Tiger Woods and wife Elin Nordegren are divorced (23 August 2010 )

Tiger Woods and his wife Elin Nordegren have divorced, the couple said in a statement posted on the world number one golfer’s website.

“We are sad that our marriage is over and we wish each other the very best for the future,” the couple said. They said they planned to “share parenting” of their two children.

News of the split comes nine months after a car crash outside Mr Woods’ Florida home set off revelations that he had been unfaithful to Ms Nordegren.

Details of the financial settlement have not been disclosed, but US media reports suggest the former Mrs Woods will receive over $100m (£64.4m).

The divorce was finalised inFloridaby Bay County Circuit Judge Judy Pittman Biebel in what was described as a brief hearing in which both Mr Woods and Ms Nordegren were present.

In November 2009 Mr Woods, the world’s wealthiest athlete, was involved in a single-vehicle accident outside hisFloridahome. Soon after, several women came forward and claimed they had had affairs with Mr Woods.

Mr Woods, 34 subsequently lost several major sponsors, including AT&T and Gatorade. In February he publicly apologised and admitted that he had been unfaithful to Ms Nordegren, a former model.

In a statement released by their lawyers on Monday, the pair asked for privacy “as we adjust to a new family situation”.

“While we are no longer married, we are the parents of two wonderful children and their happiness has been, and will always be, of paramount importance to both of us,” the joint statement said.

“Once we came to the decision that our marriage was at an end, the primary focus of our amicable discussions has been to ensure their future well-being. The weeks and months ahead will not be easy for them.”

 Is Tiger Woods Running Out of Money? (Friday, 15 July 2011)

With only a few endorsement deals left, a recent divorce settlement, a hefty house mortgage, and even a pay cut from Nike, Tiger Woods’ lifestyle is looking a lot less glamorous.

When news broke a few weeks ago that Tiger Woods had signed an endorsement deal to hawk a heat rub inJapan, it was hard not to think of “Lost in Translation,” or of the “Entourage” episode when Vincent Chase goes toChinato do an energy drink commercial because he’s out of money.

Although Woods was likely paid in the single-digit millions for the spot — in which he takes a swing, rubs his back, and says, “Go Vantelin!” — it’s a far cry from campaigns for PepsiCo (NYSE: PEP -News), Gillette, and Accenture (NYSE: ACN -News). The last time Woods showed up in Japanese TV ads was in 1997, when he promoted Asahi Wonda coffee, back before he became a phenomenon. So the deal with Kowa (maker of the rub) seems more like a moment of desperation than a return to form.

It’s no secret that Woods, once king of the sports world, has suffered financially since his fall from grace. His endorsement list shrank and his marriage ended in a divorce settlement reportedly worth $100 million. But now he may actually be hurting for funds. At the very least, there are signs that he isn’t generating enough to comfortably cover his costs.

Earlier this week, the golfer’s agent, Mark Steinberg, announced he would be joining the agency Excel Sports. Although that means Excel gets Woods too, the icon was conspicuously absent from the announcement. Steinberg left IMG at the end of May. It took two weeks, but on June 7, Woods announced via Twitter that he would be leaving with Steinberg.

IMG declined to comment on the details of Steinberg’s departure, or on Tiger Woods, but a trusted Fortune source with reliable information tells us that IMG was none too broken up about losing Woods, because his endorsement earnings have fallen so dramatically. The source says IMG’s commissions for 2011 — they’ll continue to get a chunk of Tiger’s endorsement deals through 2013 — will be as low as $1.5 million.

That’s a huge drop from two years ago. With giants like Gillette, Accenture, Tag Heuer, and Gatorade having jumped ship, Tiger’s major deals are down to three: Nike (NYSE: NKE – News), Electronic Arts (Nasdaq: ERTS – News), and Kowa. His EA Sports video game, “Tiger Woods PGA Tour ’12,” set a first-week franchise record of 225,000 games sold. But our source also tells us that Tiger’s Nike money fell by as much as 50% in 2010 (to about $10 million, down from $20 million in 2009) and that he will get the same reduced amount for 2011. The reason? Nike penalized him for his indiscretions, reducing his payment for two years as a response to his public behavior. Nike had no comment.

That Nike would have renegotiated Tiger’s contract to give him a temporary pay cut may be hard to believe, but Bob Dorfman of Baker Street Advertising says, “That’s not surprising. They’re not going to release him entirely, because that’s not the way they are, but [a pay reduction] would not surprise me at all.” As for the Kowa deal, Dorfman estimates its value at $4 million. Doug Shabelman of Burns Entertainment & Sports Marketing believes it’s worth around $3 million. Recent valuations of Tiger’s overall endorsement earnings for 2011 have been between $60 million and $75 million. But based on our information about Nike, and on the Kowa estimates, the real number is likely closer to $20 million.

Woods’ agent adamantly denies the assertion that the golfer is facing financial strain. “Tiger Woods is financially sound and strong, contrary to wide-ranging rumors and inaccurate figures in the media,” Steinberg wrote in an email. “Stating anything else is incorrect and factually baseless.”

Another factor that has undeniably fizzled is Tiger’s tournament winnings. Woods won no majors in 2009, the first year that’s happened since 2004. He went completely winless in 2010, and this year he’s so far missed the U.S. Open, AT&T National, and British Open due to a knee injury. According to the PGA Tour website, Tiger’s 2011 winnings so far total $571,363. Those are like pennies compared to the $10.9 million, $5.8 million, and $10.5 million he earned in 2007, 2008, and 2009, respectively. In 2010, that dropped to $1.3 million.

Woods is still young, and undoubtedly one of the greatest golfers alive, but as he continues to stay off the links, that money stream dries up. Meanwhile, Tiger Woods Dubai, a billion-dollar project that was first set to open in 2009 with a golf course, pricey real estate, and restaurant, was scrapped in February.

As Tiger’s revenues have declined, his expenses have only climbed. To begin with, there’s the reported $100 million divorce settlement. And last August, Woods took out a $54.5 million mortgage on his home in Jupiter Island, Florida. According to the public document, Woods is required to pay off the mortgage in full by January of 2016, giving him a mere five and a half years to shed the debt. He’s therefore paying more than $10 million each year, including his $431,042 in annual property taxes.

That 2010 property tax information comes from the district offices of Martin County, FL, where the home Woods now occupies alone is located. The property, which Woods purchased in 2006 for $44.5 million, is valued at around $47 million (the county values the house at $26.48 million, the land at $20.5 million). His 2010 improvements to the dwelling and the property cost him $6 million, including three separate residential pools, a tennis court, a golf green with a few holes, an elevator, and a 14,736-square foot improvement to the interior of the house — evidence that Woods is not used to living cheaply. But the pace of his home improvements has slowed, according to online records of the county appraiser’s office. So far there have been none in 2011.

Mark Steinberg says simply that there is no debt on Woods’JupiterIslandhome, and declined to elaborate. But theMartinCountyclerk’s office confirmed that their records show that the mortgage has not been paid off.

TheJupiterIslandmega-mansion isn’t the only Woods property. Among others, in 2007 he bought his mother property near his own, inJupiterIsland, for $2.4 million. In 2010, construction on that cost him another $2.6 million. Presumably, it’s Woods himself that pays and will continue to pay all taxes on the home.

Between the divorce settlement and his recent mortgage, Tiger has faced recent debts to the tune of at least $160 million, though it’s unknown how much of this he has now paid down. His endorsement earnings will not come close to this in 2011, and he’s no longer adding much to his pot with golf winnings. Nike’s decisive slash to his contract has not helped matters.

“Tiger remains one of the most popular and visible athletes in the world, demonstrated by television ratings, tournament attendance and various empirical polls,” Steinberg says. “His endorsement future is strong and any additional partnerships will be announced at the appropriate time.”

To fix up his financial short game, Tiger Woods is going to have to start making money again the old-fashioned way: by playing the sport he’s known for

andriantoangkadirjo85 bottom line

– Really tragic, fall from grace.

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The worst financial decision I ever made ..(3)

Posted by andriantoangkadirjo85 on June 23, 2011

Hi all,

How’s your day? Hope everything’s fine. I keep posting about worst financial decision as I still can find stories about this awful reality of life. Interesting right? People had millions only to lost it all..thanks to bad investments, extreme generosity and terrible financial advice. Here’s just their stories :

1. Heiress Patricia Kluge files for bankruptcy

A former socialite, bellydancer and nude model who became known as ‘the wealthiest divorcee in history’ after she split from her billionaire husband has declared herself bankrupt. Patricia Kluge secured a settlement amounting to £1million ($1.6million) a week after the divorce 21 years ago. Mrs Kluge, who had entertained royalty, moguls and celebrities at her sprawling Virginia estate in the 1980s and later tried her hand as a winemaker, filed for personal bankruptcy protection with her third husband.

The 62-year-old Briton netted a reported $1billion after splitting from media mogul John Kluge in 1990. She splashed out on the lavish 45-room Abemarle House, set on 3,000 acres of land in Virginia.

The one-time star of adult film ‘The Nine Acres of Nakedness’ became known as the host of extravagant parties attended by the rich and famous.

But the high-living British woman, who was born in Baghdad, has declared herself bankrupt after she crashed financially and her winemaking business failed. Bankruptcy papers reveal the sad downfall of the former billionaire who has desperately been trying to raise money by selling off her possessions over the past year. She and her husband William Moses estimate have up to $50 million in liabilities, according to bankruptcy filings. A lawyer for the couple, Kermit Rosenberg, said: ‘They’re getting on with their lives, trying to discharge their debts and start over.’

Mrs Kluge acquired the 23,500-square-foot Albemarle House and its 3,000 acres in rural Virginia from her 1990 divorce from billionaire media mogul John W Kluge, who died in September. It was designed after an 18th-century English country manor with multilevel gardens, fountains, a swimming pool and rustic guest cabin.

For Sale

  

In the 1980s, Mrs Kluge hosted opulent events for royalty, corporate chieftains, celebrities and literary figures at the home, which Mrs Kluge once said defined her. The 62-year-old said last year that she no longer lived that life and instead was trying to focus on a winery business she had sought to create with her new husband.

The Chapter Seven bankruptcy petition comes after the failure of negotiations with three principal banks, Mr Rosenberg said. The banks had foreclosed on the couple’s winery business, their Albemarle House mansion and a neighborhood of luxury homes under development. Mr Rosenberg said attempts to ‘structure an overall settlement’ didn’t succeed. He added the filing places the couple’s assets under the control of a court-appointed trustee, who will administer payments to creditors. Bank of America filed a lawsuit against Mrs Kluge in U.S. District Court in Charlottesville, alleging that Kluge defaulted on three loans worth nearly $23 million on the brick Georgian home and its grounds. The bank purchased the property for $15.26 million.

The couple also lost their Kluge Estate Winery & Vineyard after defaulting on nearly $35 million in loans from Farm Credit Bank during their effort to build a national wine business during the economic downturn. Reality-television mogul Donald Trump bought most of the business in April, saying he wants to operate the vineyard. Lender Sonabank took back the couple’s upscale Vineyard Estates subdivision for $4.9 million at a January auction after Kluge and Moses defaulted on an $8.2 million loan after few properties on the 511-acre tract had sold.

The couple’s current home in the subdivision wasn’t part of the sale.

Vineyard

To raise cash for the struggling winery, Mrs Kluge enlisted Sotheby’s last June to conduct an onsite auction of furnishings, antiques and other items, which brought in $15.2 million. An ornate Qing Dynasty Chinese table clock sold for nearly $3.8 million, and worldwide bidders also paid top prices for paintings, furniture and other pieces in the collection. Mrs Kluge also liquidated much of her jewellery for about $5 million at a previous sale.

News of Kluge’s fall from financial grace stirred up a frenzy of Web searches. Over the course of an hour, online lookups for “patrica kluge” spiked as did interest in “patricia kluge bankruptcy” and “patricia kluge broke.”

Declared bankrupt 21 years after she netted a reported $ 1 billion after splitting.

2. Barbara Hutton and Jimmy Donahue.

Frank W. Woolworth was a colossus, a man who started life in the backwoods but went on to build a worldwide business empire and a mighty New York skyscraper the Woolworth Tower, just to remind people how powerful he had become.

He worked every day of his 66 years, and when he died he left the equivalent of a billion pounds in his will. His family blew it all. It has taken the Woolworth company more than 100 years to reach its nemesis. But it took Frank Woolworth’s family a fraction of that time to ruin itself. Woolie’s may be best-known for its pick ‘n’ mix, but the family was a byword for sex, drugs and profligacy. They went from rags to riches and back to rags in three generations.

A few years ago, I bumped into one of the tribe, Mary Woolworth-Donahue, in an out-of-the-way town in Illinois. A reformed alcoholic, she was elegant but penniless and living in someone else’s house. By this point, the fortune had long since vanished. Money, to the Woolworths, was a curse. Unlike families such as the Rothschilds, they never learnt how to deal with it. So they just spent it – and bought their own destruction in the process.

The sad irony of the demise of Woolworth’s stores in Britain is that, for many decades, they continued to exemplify all the virtues instilled by their founder – hard work, cheap goods, a little pleasure – while his family took off in the opposite direction. They despised work and indulged themselves in consumerism and debauchery instead.

The main culprits were FW’s grandchildren, Barbara Hutton and Jimmy Donahue.  Hutton was the original ‘Poor Little Rich Girl’, the child of FW’s daughter, Edna.  Donahue, the fast-talking playboy who was to ruin the reputation of the Duke and Duchess of Windsor, was the son of the old man’s daughter, Jessie.

Hutton, whose mother committed suicide – Barbara found the body – was just seven when she inherited today’s equivalent of a third of a billion dollars.

The counter assistants at Woolworth’s may have been toiling ten hours a day, but she would never have to work. Instead, Barbara Hutton went shopping. As the richest girl in the world, she could have anything – and so she took to shopping for husbands. In the end, she had seven.

In her secret little world, Hutton repudiated her origins and longed to be high-born. It was no coincidence that of her husbands, two were princes, one was a count, one was a baron and one had a title bought for him.

She detested being a plain old ‘Mrs’. Of her many husbands, the most famous was her third, Hollywood aristocrat Cary Grant – while they were together, wiseacres labelled them Cash ‘n’ Cary. Grant got the call to the altar only because he was at the time one of the world’s most famous actors – and he was only too aware that his wife fantasised about being a real princess.

Their marriage barely lasted four years and Grant gave an insight into his wife’s make-believe life as he departed:

‘Barbara surrounded herself with a consortium of fawning parasites – European titles, broken-down Hollywood types, a maharajah or two, a sheikh, the military, several English peers and a few tennis bums.

‘If one more phoney earl had entered the house, I’d have suffocated.’

Nobody who met Barbara Hutton walked away the poorer – how she loved to spend her grandfather’s money. And if people commented, so what? She spent the equivalent of £20 million on building a house in London’s Regent’s Park, now the U.S. Ambassador’s residence, and without a breath dished out half that on a suite of jewels once belonging to Napoleon. She treated upmarket jewellers Cartier, Asprey, Van Cleef and Arpels like other people treated her grandfather’s five-and-dime stores – she’d drop in and help herself to whatever took her fancy.

Her flagrant disregard for propriety – her dictum was ‘If you’ve got it, flaunt it’ – caused her on one occasion to be reminded of where all that cash came from. When Barbara declared: ‘Living well is the best revenge’, it hit the business hard – poor people were reluctant to spend their hard-earned pennies at a business which had such a gargoyle at its prow.

And the workers had to pay the price, by working longer hours for pitiful wages. When American employees noisily threatened to strike in 1938, the executive board blamed Barbara for their troubles. And weeks later, groups of unruly shopgirls were picketing the swanky Pierre Hotel in New York, where Barbara had a suite of rooms, shouting: ‘Barbara Hutton! Is 18 dollars a week too much?’ But she didn’t care.

As time went on, whatever tenuous link with reality she’d once had evaporated completely. Between husbands, Barbara had a string of affairs – among them with Howard Hughes, one of the world’s richest men, and with Porfirio Rubirosa, one of the world’s best-endowed. She demanded sex, often, from the men she was with, yet remained strangely aloof from the process. One lover, after the expenditure of much energy and ingenuity, concluded she was incapable of being satisfied.

And so one of the richest woman in the world was also one of the unhappiest – and took to alcohol and drug abuse on a grand scale. With her cousin, Jimmy, she discovered in her teenage years the dubious delights of Seconal, a barbiturate-based tranquilliser which produced a damaging but lasting high.

It was to prove her downfall. But compared with Jimmy, Barbara was a mere innocent.

The son of Frank Woolworth’s second daughter, Jimmy was born bad. Knowing he would never have to work in his life, he devised a career for himself – that of mischief-making. There were many pranks. But the best was taking the Duchess of Windsor to bed.

Jimmy first met the Duchess at the Palm Beach Palace hotel, which he called home, in 1941. He was 25 and she was 44. But it was probably Jimmy’s predatory mother, Jessie Donahue, who encouraged her son, nine years later, to make overtures to the Duchess. Certainly she paid for Jimmy’s first-class ticket on the RMS Queen Mary as it slipped away from New York on May 24, 1950, heading for France. The couple started the journey as mere acquaintances, but they ended it as lovers. For the next four years, they were inseparable as the poor, ageing Duke played the tormented cuckold.

Nobody else suspected, because Jimmy – until this point – had been a hugely promiscuous homosexual. He had tribes of gay lovers, most of whom refused to believe he could have a sexual relationship with a woman. But Jimmy did.

By 1950, the Duke and Duchess of Windsor had been married for 13 years and had been lovers for 16. But their relationship was largely one-way traffic, with the Duke gaining gratification from his hectoring and abusive wife while she refused sexual satisfaction.

But with Jimmy, everything changed. The Duchess, when in Paris, would go out with the Duke and Jimmy as a threesome – but the Duke, tiring now of long hours spent in nightclubs, would go home at midnight. The Duchess and Jimmy would then repair to the black, satin-lined apartment of socialite Count Jean de Baglion, overlooking the River Seine; and her car would not return home until after dawn.

‘She married a King, but screwed a queen,’ the Count was heard to sourly observe of the Duchess’s affair with the homosexual Jimmy. The Duchess would go home and leave notes on her bedroom door: ‘Go away. Stay away. Don’t come in here.’

Jimmi and Duchess of Windsor

Meanwhile, the Duke, who only a few years earlier had given up throne, empire, riches and power for ‘the woman I love’ was forced to sit out his wife’s menopausal fling with a gay playboy young enough to be her son. One day, more of a joke than anything else, Jimmy proposed marriage to the Duchess. And she didn’t say no.

In America, where she hailed from, the name Woolworth meant a whole lot more than the name Windsor. What, apart from her reputation, was there to lose?

In the end, wiser counsels prevailed – and Jimmy was getting bored anyway. There was a row, Jimmy kicked her on the shin, drawing blood, and finally the tiny Duke gathered up enough courage to shout: ‘We’ve had enough of you, Jimmy. Get out!’ Jimmy walked. It meant goodbye to a large slice of the high-life for the Windsors. For during the length of the affair, Woolworth money had bankrolled the couple – who caved in to the onslaught of money, gifts, holidays, cars, foreign travel and jewellery which Jimmy and his mother Jessie showered on them. Woolworth money had brought the former King-Emperor to his lowest point – one night, he’d even worn the diamond cufflinks Jimmy had given him as a present for bedding his wife.

Jimmy went back to the life he’d known before, queening it round the Fifth Avenue bars strictly reserved for New York’s uppercrust gay set. When people asked him about the Windsors, he would say: ‘Oh, them! Don’t you know I’ve abdicated?’ His life continued on a downward spiral of drink and drugs. Though it was never proved (because the police, in receipt of Woolworth kickbacks, had no desire to prove it), Jimmy almost certainly murdered his boyfriend, the unfortunately named ‘Lucky’ Morra, by force-feeding him drugs, and soon there seemed nothing left to live for.

When he died in 1966, of a drugs overdose, Jimmy was found in his Fifth Avenue bedroom – which contained nothing but a bed and 13 framed photographs of the Duchess of Windsor. His mother, when told the news of her son’s death, glimpsed the social oblivion that was soon to encompass her and uttered: ‘Oh! This is the worst thing that can happen to me!’

But what of Jimmy’s cousin, the Poor Little Rich Girl? Her biographer David Heymann recorded that by now, Barbara Hutton’s daily diet consisted of 20 bottles of Coca-Cola with spirits (usually vodka), intravenous megavitamin shots mixed with amphetamines, a soybean compound, cigarettes, and a cocktail of drugs, including codeine, Valium, and morphine. Away with the fairies, she married a Vietnamese chemist working for a French oil company and bought him an Indo-Chinese princedom from the Laotian embassy in Rabat. She went to her grave as Princess Raymond Doan Vinh Na Champassak, the wife of a nobody. 

The Woolworth family, like the stores that today still bear their name, had truly lost their way.

andriantoangkadirjo85 bottom line :

– They all just spending money like drunken sailor! Turn Millions into Zero!

– Easy come, easy go!

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PONZI SCHEME..if it sounds to good to be true, it probably is..

Posted by andriantoangkadirjo85 on April 27, 2011

Hi,

I was inspired about this PONZI SCHEME thing after I came across an article in Yahoo!Finance ‘ Retired Bus Drivers Lost Everything in Ponzi Scheme ‘.  What is really PONZI SCHEME? According to Wiki : IT IS THE DESCRPITION OF ANY SCAM THAT PAYS EARLY INVESTORS RETURNS FROM THE INVESTMENTS OF LATER INVESTORS. This scheme was bringing in cash at a fantastic rate, but the simplest financial analysis would have shown that the operation was running at a large loss.  As long as money kept flowing in, existing investors could be paid with the new money. In fact, new money was the only way this Ponzi Scheme had to pay off those investors, as this scheme made no effort to generate legitimate profits. This kind of scheme have happened in countries around the world.

So the questions are what makes this scheme possible and why this scheme got so many victims? Some people even mortgaging their homes and investing their life savings.  Despite GREED (offer high return), Ponzi Scheme are CONFIDENCE GAMES. To be truth, anyone can be taken by this Ponzi Scheme ..NO EXCEPTION. Each scheme seems to have their own target, ‘passion group’, as they called it. The people who say they would never get victimized are also in ‘passion group’, ’cause they will use your confidence against you and you would fall for it. Man more so than women. Women are actually harder to victimized because their ego and self-confidence aren’t as likely to get the best of them. And woman like to ask questions and talk about things . Ponzi Schemers hate this. Men assume they know everything. It is so easy to take a man. It is almost like dating if you are Marlyn Monroe. Men are so dazzled by the attention, they won’t even know you are robbing them blind. One more thing : Most of these people were introduced by someone already in the schemes.

How many times does this sort of thing have to happen..Ponzi Scheme..? Don’t we read about them all too often? Wake up people..! Below, I wrote 2 cases Ponzi Scheme.. 1 in my country Indonesia & the other  in Uncle Sam country.

1. DRESSEL INESTMENT LIMITED

Dressel Investment Ltd used its agent in Indonesia, PT. WAHANA BERSAMA GLOBALINDO, to perpetrate the scheme which targeted the potential investor from Indonesia. They operated from 1997 to 2006.

This company, Dressel Investment Limited, launched 2 investment products, SPORTMANS (Strategic Portfolio Management Scheme)& GMP(Global Market Portfolio) , promised their clients high returns of between 24% and 28% per year on such a small investment, min $5,000/unit, for 6 months periods. Thousands of indonesian investor  got victimized by the scheme. This company raised at least $150 million nationwide.

The fund manager (they called it that way) of Dressel Investment Ltd met with Indonesian potential investor first in May, 2001 at Grand Hyatt Hotel, Jakarta, Indonesia. Officially led by Donald Sherer & Joseph Yau, they claimed that Dressel was negotiating with the Cayman Holidays Government for 15 yrs tax-holiday incentive, something believed never happened. Sherer also portrayed himself as a successful investments advisor, so did Joseph Yau. Both of them falsely promising high investment returns through stocks, bonds, gold, real estate and others premium projects. Sherer also insisted these investments were all safe and the money would be handled very2 professionally. He encouraged them to invest their money through Dressel’s products..SPORTMANS & GMP.

The second meeting was held in September 2001. Also by Sherer & Yau. Sherer duped the potential investor by falsely claiming that he was years on foreign financial markets & taught financial management. They distributed Dressel’s brochures to potential investors. The brochures also named Kenneth McCabe & Michelle Sherer as a professional investment advisor, which were not. The brochures also named Dwight Williams as its company lawyer and Tanner LC as its accountant. At last, the brochures also including bank account and routing info of Dressel in Regal Financial Bank, to which the potential investor could transfer their money.

The third meeting was held in June 2004, at Hyatt Regency Hotel, Bandung, Indonesia. Danny Wong, Dwight Williams, Donald Sherer & Michele Sherer attended this meeting. They always falsely claiming high return 24%-28% per year from Dressel to the potential investor & told them that Dressel could make avarage profit 40% per year. This representation was really a scam!! Dressel placed only a minuscule fraction of the investors’ money in legitimate investments!! Instead of taking steps to protect the investors’ principal investments, Dressel misappropriated virtually all of their money to among other things, eg. started & financed their individual own business and lived a lavish lifesytle, included helicopter for themselves.

The fourth meeting was held in July 2004 at Shangrilla Hotel, Surabaya, Indonesia. Danny Wong, Donald Sherer, Michelle Sherer, Dwight Williams attended this meeting. Here, they told that Regal Financial Bank was partly owned by Dressel. Danny Wong also told that Dressel invested their money through out companies around the world, in China, Japan & Europe, which was not. All the money went to individual to started & financed their own individual bussines & to live a lavish lifestyle.

Dressel also launched a web site in Pebruary 2001, which contained so many misinformation & misrepresentation about data being manipulated by Dressel. The data falsely claimed about the qualification of Donald Sherer, Michelle Sherer, Kenneth McCabe, David Thacker & Kelly Thacker as experienced, professional investment advisors for years, which was not !!

In September 2006, Dressel stopped payment to investors because the Ponzi Scheme were disclosed. No money from investors came in anymore. All the existing investors’ money in Dressel Investment Ltd at least $150 million from thousands investors throught out all Indonesia region ( Jakarta, Surabaya, Bandung, Makasar, Medan) were all been screwed !!

Dressel Investment Ltd really a scam!! Rather than making any actual investments, Dressel in fact, operated a Ponzi Scheme, in which new investor money was used to pay interest to existing investors, financed their individual own bussines & live a lavish lifestyle. What really a scumbag!!

2. Mitchell Ponzi Scheme

Retirees duped in Ponzi Scheme..Yup, it is tragic. Here’s the story :

Thomas L Mitchell, 64, through his investment advisory firm Mitchell, Porter & Williams, Inc (MPW) operated two entities, the Adivanala AA Investment Trust (the “AAA Trust”) and AB3, Inc., (“AB3”), which collectively raised at least $14.7 million from 82 MPW clients nationwide, most of whom were retired as  transit operators by the Metropolitan Transportation Authority, according to the U.S. Attorney’s Office.

The Commission’s complaint alleges that MPW’s clients, many of whom are recently retired bus operators, were referred to the firm by former colleagues. According to the complaint, Mitchell met with the clients, and encouraged them to take their retirement pensions as a lump sum payment, rather than a monthly annuity. The complaint alleges that Mitchell advised MPW’s clients to invest their retirement money in a promissory note offered by the AAA Trust and AB3. The complaint further alleges that the promissory note offering carried fixed interest returns ranging between 10-15% per year for 3-6 year terms. The complaint alleges that Mitchell made various claims to investors as to how he could generate such large returns, including investing in stocks, bonds, and real estate.

Mitchell portrayed himself as a successful investment adviser, falsely promising high investment returns through stocks, bonds or real estate.  Mitchell also reportedly insisted his investments were safe, falsely telling at least one victim that her money was insured by the federal government. With these and other bogus claims, Mitchell convinced victims to transfer their retirement funds from their employers’ retirement plans into accounts that he controlled, according to federal officials.

Mitchell’s Ponzi scheme, which operated from 1995 to 2010, “placed only a minuscule fraction of the retiree victims’ money in legitimate investments,” according to the plea agreement. The complaint alleges that between April 2009 and December 2009, the AAA Trust raised approximately $1.4 million from 6 investors. According to the complaint, $1.1 million of these funds were used to pay interest to existing investors, and another $300,000 was diverted to MPW, which Mitchell used to pay his living expenses. The complaint alleges that during this time, the AAA Trust only invested $32,000 worth of investor funds.

“Moreover, instead of taking steps to protect the retiree victims’ principal investments, (Mitchell) misappropriated virtually all of their money to, among other things, live a lavish lifestyle,” which included a luxury apartment, three luxury automobiles, expensive vacations, high-end restaurants and tickets to sporting events and shows, according to the U.S. Attorney’s Office.

The Commission’s complaint, which was filed in federal court in Los Angeles, alleges that, rather than making any actual investments, Mitchell and the other defendants in fact operated a Ponzi scheme, in which new investor money was used to pay interest to existing investors. At last, The Securities and Exchange Commission (“Commission”) obtained an asset freeze and other emergency relief to halt an ongoing Ponzi scheme targeting retired bus drivers living in the Los Angelesarea.

andriantoangkadirjo85 bottom line

There have been scammers out there since the beginning of time. Any sensible person should only make investments with reputable persons and institutions insured by the government (FDIC, SPIC, LPS, etc). Making investments can be a gamble no matter what..but never trust your money to someone without being fully informed. You need to understand what you are investing in and with whom and what the risk are. These criminals get away with it because there are plenty of people who believe what they tell them without a true understanding of what the investments are and how legitimate investments work. Don’t put all your eggs in a stranger’s basket.

– Need new legislation for this kind of crime.

– It doesn’t make any difference whether you lose a little or a lot, how or with whom you invested, the older you get the more likely you are to get sick and “catastrophic illness casino” can screw your money too.. always be prepared & bewared I think is the best way to live in this world.

So, what do you think ? Have you any comments or experiences, please feel free to write your comments below. Thanks



Posted in Experience | Tagged: , , , , , | 3 Comments »

The worst financial decision I ever made..(2)

Posted by andriantoangkadirjo85 on March 30, 2011

Here’s just another stories about people made bad decisions, got tricked by the bank, got screwed by another people and last but not the least ..the trap of doing bad business ..all of which lead to ruefulness, bitterness, sadness, poverty & jail.

Medino, Mon Mar 21, 2011.

IT’S NOT JUST A STORY.I PURCHASED A HOME WITH MRARGINAL CREDIT IN FLORIDA IN 2004 $95.000.GREAT 4/2 CORNER LOT,WITH 1/4 ACRE.PUT IN AN ABOVE GROUND POOL,CIRCULAR DRIVE WAY,MADE A 24X15 COVERED PORCH,6FT,].PRIVACY FENCE ALL AROUND.WAS APPRAISED AT $225.000.WAS APPRAISED FOR $225.000 IN 2010.REFINACED AND GOT $45.000 OUT.SAVED IT,BUT MY PAYMENT WENT FROM $910.00 TO $1963.00.I NOT ONLY GOT TRICKED I COULDN’T AFFORD IT.THEN THE MARKET FELL AND THE HOUSE DROPPED TO $125.000.NOW I OWED $145.000.I COULDN’T PAY.SO I TOOK THE CASH AND BOUGHT A RENTAL BEFORE MY CREDIT GOT DAMAGED.THEY FORECLOSED MY HOUSE AND SOLD IT TO WELLS FARGO ACCORDING TO THEM FOR$100.00.NOW THEY WANT ME TO PAY THEM $143.000.GOOD LUCK COLLECTING THAT.THEY ARE SO MANY HOUSES IN BANK SURPLUS THAT IN 2 YEARS THEY WILL GIVE LOANS TO ANYBODY JUST SO THEY DON’T HAVE TO PAY ALL THE PROPERTY TAXES.MARK MY WORDS.

ED, Mon Mar 21, 2011.

I totally understand this guy’s problem, but dude please don’t blame it on your wife, even if it was her idea.
I’m struggling big time to pay my morgage everymonth, my income is pretty unstable right now, construction is my job, you can imagine, I bought my house in 2002 for $320 000 right now because bad decisions now we owed $501 000, pretty stupid ha, at this point I want to get rid of this nightmare. But NO instead I gonna continue until god know’s what, this is what I did, knowing that I never EVER going to pay off my house in my life time, I bought life insurance, YEAH don’t be a selfish, so when I die my wife and my two doughters can enjoy the house plus extra money to survive for a few good years, so c’mon life is a waiting room and my turn it’s just around the corner. This is the difference between renting and buying, THINK ABOUT YOUR SON !

Susanna Wilson, 70

“I can never retire,” she said, her voice trembling as she stared at the floor of her living room in Grass Valley, Calif. “Probably about every two weeks when the bills are due, that’s when I get really worried. I think ‘How am I going to pay this one?’ ” It should never have come to this. In her 40s, Ms. Wilson moved to California and became a publicist. At her peak, she made around $65,000 a year, she said, and not a penny of that made its way into a retirement fund. “One thing kind of led to another,” Ms. Wilson said. “I’ve always put all my money into my businesses. And I always thought the business I was in was going to be a great success.”

Now twice divorced and living alone with her Shetland Sheepdog, Rooney, Ms. Wilson subsists on those government checks, plus a one-day-a-week job at a local jewelry store that pays $12.50 an hour. She received no alimony from either divorce. Ms. Wilson also makes little girls’ dresses under her O’Susanna label, at a vintage Singer Featherweight sewing machine in her dining room. But she sells only about six a month for around $200.

Ms. Wilson would probably manage on her current income, though not without sacrifice, were it not for the debt she had accumulated. All told, she averages about $1,400 in monthly income, including Social Security (adjusted for one of her former husbands’ earnings). A third of that goes toward fixed expenses like utilities. She pays $300 toward a mortgage balance of $5,477. She inherited the house, fully paid off, from her parents, but took out the mortgage a few years ago to pay for repairs.

The balance of her income goes toward the monthly minimum payments on $9,000 in credit card debt, racked up for daily living expenses. “I think I might just have to declare bankruptcy,” she said. “I just can’t live with that.”

Cheryl A,

I’m gonna be in the same position that she’s in.. I’m 59 and have been single for 20 years. I raised 2 children by selling cars and am still in the car business. My 2nd husband owes $130,000 in back child-support that I’ll never see, and my brother screwed me out of my half of my parents’ estate to the tune of $200,000. I’m just making enough to get by and will have to try to live on social security when I retire unless something drastic changes financial-wise. I don’t own a home and my credit is not good at all, so I’m pretty much screwed — No golden years for me!

– Putra Nevo

In his 40’s, Putra Nevo is a successfull professional. As a President Director of a company, PT. MASARO RADIOCOM, this might be his best season of life. But as usual, PEOPLE not always AWARE.. Doing the business as usual, customer services, find big order, make great profit for the company…ONE THING KIND OF LED TO ANOTHER.. Now he was charged as a corruptor by the judicial court and sentenced 6 years to prison plus fined IDR. 200million subsidiary 4 months in prison. He also ordered to amends the country’s financial loss around IDR. 89.3 billion instead of 2 years more in prison. WHAT A VERDICT!!! How’s that thing could be? Yes, he was proved guilty by mark up the price in accordance of procurement of radio communication device in forestry ministry, which caused country’s financial loss total IDR. 89.3 billion.He also made some briberies to the authority person in forestry ministry. Surely, he wasn’t aware that time, no one warned him because this is how the business ran.. and suddenly…BOOM..BOOM…tragic..

andriantoangkadirjo85 bottom line

Got tricked by the bank, bad decision caused of lack of wisdom & understanding, greedy (always put all the money in business & thought the business was going to be a great success) & doing ‘black business‘ will certainly jeopardize our financial & life.

– There are so many wicked things out there, waiting for us. Many bad things can happen & surely it differs for each person..so the best thing is always BEWARE..BEWARE…

Okay, what do you think ? It seems to me more many bad things will resurrect for the times ahead.

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The worst financial decision I ever made…

Posted by andriantoangkadirjo85 on March 22, 2011

Hello,

We all made mistakes, right ? Especially when it concern with money decisions. But of course, we’ve tried to learn from those mistakes. Some mistakes have been much costlier than others. They’re all valuable learning experiences!! From now on, I just try to gather the story about people made worst mistakes in financial and hit them most, their economy got slumped, they struggle to live, some live in poverty & bankruptcy…

HERE”S THE STORIES ……..

1.Julia(Guest) 03/19/2011

The worst Finacial decion IVE ever made was in 2007, was advised to take huge loan out on my home that was paid off, to buy incomeproperty( sold it and lost $190,00 cash within 6mo) lost ALL 4 homes due to being place in bad loans, private lenders and now lost over .9million due to the fraud of a realtor, taking him to court at my cost, and he defaulted and filed BK, so now my family and I rent and live in proverty. The realtor made off with tens of 1,000s from me and being naive. Beware of realtors- they thrive on greed.

2. Mike Tyson



The king of them all is boxer Mike Tyson, who squandered a $350 million to $400 million dollar fortune. So what did “Iron” Mike spend his fortune on? Everything. He dropped half a million dollars on a 420-horsepower Bentley Continental SC with lamb’s wool rugs, a phone and a removable glass roof. It is one of only 73 Bentley Continental SCs ever built. The sad part is that’s not even the only Bentley that Tyson owned! He spent over $4.5 million dollars on cars alone. Throw in a $2 million dollar bathtub and $140,000 for two Bengal tigers and you can see why Tyson’s fortune is down for the count. He filed for bankruptcy in 2003.

3.  Evander Holyfield

Four-time boxing champ Evander “The Real Deal” Holyfield reportedly made over $250 million in cash during his boxing career, but despite this he reportedly is flat broke. Holyfield lost all his money by making “smart” business decisions look really foolish. You thought buying a house was a smart move? It normally is, but not when you buy a house the size of Rhode Island. Holyfield bought a $20 million house with over 54,000 square feet and 109 rooms. The house has 11 bedrooms, 17 bathrooms, a movie theater, a bowling alley and an Olympic-size swimming pool. Imagine how much it must cost to cut the grass on all 235 acres! You could buy a Range Rover with the electric bill payment alone.

4. Scottie Pippen

Known more for his on court defense than his off court business sense, former Chicago Bulls star Scottie Pippen lost $120 million in career earnings due to poor financial planning and bad business ideas. Air Jordan’s sidekick blew $27 million on bad investments and spent $4.3 million on a Gulfstream II corporate jet.

5. Lenny Dykstra

Former New York Mets and Philadelphia Phillies star Lenny “Nails” Dykstra was a success on the baseball diamond, but in the business field Dykstra has struck out. Dykstra’s failed businesses include car washes, a magazine company, real estate investing and a stock trading website. According to Dykstra’s July 2009 bankruptcy filing, he owed more than $30 million to creditors, including his $18.5 million purchase of Wayne Gretzky’s home. The amazing part is that after two foreclosed homes and numerous failed businesses Dykstra is offering the investment advice that led him into bankruptcy for a mere $899 a year! In the investment world, it is often said that past history does not dictate future performance. Nevertheless, it’s pretty clear Dykstra isn’t the guy to go to for advice.

6. Latrell Sprewell

Look up the word “shortsighted” in the dictionary and you will see a picture of Latrell Sprewell. He famously turned down a $21 million contract because he said it wasn’t enough money to feed his family. Sprewell, who made over $96 million during his career, lost his $1.5 million dollar Italian yacht, named “Milwaukee’s Best”, in 2007. According to MSNBC, a U.S. marshal seized the yacht after Sprewell defaulted on his mortgage. His $5.4 million house went into foreclosure in May 2008. Don’t blame Sprewell for turning down the three-year, $21 million contract though. I mean really, who could live off a measly $7 million a year?

7.John Daly

Two-time PGA major champ John Daly gambled away between $50 and $60 million in career earnings, according to his 2006 autobiography. Daly once lost $1.65 million in five hours playing the slot machines at a casino. If you think that’s impressive, there’s more. Daly blew $1.2 million in a mere two hours and 30 minutes at a casino in Las Vegas. He just had his $1.6 million house foreclosed on. Did Daly quit gambling after blowing so much cash at the casino tables? Not by a long shot. Instead, he decided to downgrade from the $5,000 slot machines to the $100 and $500 machines. It looks in John Daly’s world, that is considered sound financial planning.

8.Jack Clark

Former professional baseball slugger Jack Clark was driven into bankruptcy in 1992 by his appetite for luxury cars. According to his bankruptcy filing, he owned 18 luxury automobiles, including a $700,000 Ferrari and a Rolls Royce. Clark was trying to pay 17 car notes simultaneously, and whenever he got bored with a car he would get rid of it and just buy another one. He ended up losing million-dollar homes and his drag-racing business because of his extravagant spending habits, but despite one of the most publicized bankruptcies in baseball, Clark reportedly got back on his feet in the late ’90s.

9.Mark Brunell

It was the real estate recession that put the former Jacksonville Jaguars quarterback on the financial injury list. The three-time Pro Bowler, who raked in more than $50 million during his decade-long career and took home a Super Bowl ring in the 2009-2010 season with the New Orleans Saints, filed for Ch. 11 bankruptcy in June 2010.
His filing listed $5.5 million in assets and nearly $25 million in debt after several real estate projects in which he had invested in Florida and Michigan went belly up. His personal guarantees on a number of business loans put the final nail in the coffin. Today, Brunell plays backup for New York Jets QB Mark Sanchez and continues to operate football camps via his company Mark Brunell Enterprises. Let’s hope those future football greats pay up.

10.Travis Henry

It was his penchant for producing offspring that cost Travel Henry his fortune – that and a little cocaine trafficking incident. Having fathered 11 children by 10 different mothers (one had twins), the former running back for the Buffalo Bills and Denver Broncos has indicated in various court filings that his child support payments of roughly $180,000 per year have left him penniless. Henry was cut by the Broncos in 2008, receiving less than $7 million from his 5-year $25 million contract. A year later, he was sentenced to three years in prison on federal drug charges following a cocaine sting.

11.Dermontti Dawson

The real estate recession hit Dermontti Dawson like, well, a linebacker. The one-time highest paid offensive lineman in Pittsburgh Steelers history, earning $4.2 million per year at the peak of his 13-year career, filed for Ch. 7 bankruptcy last year citing $69 million in debt. Dawson’s money troubles primarily stem from his personal guaranty on a number of failed real estate ventures including shopping centers and single family home developments. His home and personal belongings, including watches, cars, jewelry and personal memorabilia, were auctioned off late last year, netting a reported $775,000.

12.Lawrence Taylor

It was a career marked by controversy for former Giants linebacker Lawrence Taylor, starting in 1988 when the NFL suspended him for failing a second drug test. The real trouble began, however, both personal and financial, after his retirement in 1994. He was arrested in two states on drug charges in 1996 and filed for bankruptcy in 1998 to keep creditors from taking his house. Two years later, he received five years of federal probation for falsifying tax documents and tax evasion. And in 2009 he was arrested for fleeing the scene of an accident, and the statutory rape of a 16-year old girl, for which he is currently serving six years probation as part of a plea agreement.

13.Arthur Marshall

When Arthur Marshall went down, he went down big. The former Broncos and Giants receiver started serving a five-year prison sentence last August after pleading guilty to two counts of bank fraud. Charges included providing false personal information on his mortgage applications, real estate contracts and other documents he used to obtain loans for the construction of homes in Augusta, Ga. – part of an elaborate mortgage fraud scheme. The jig was up when his housing project imploded during the real estate recession. He was also ordered by the courts to pay more than $3.6 million in restitution to his victims, which included several banks, members of the American Legion and a family paid Marshall $100,000 for a home and never received the property title. His 2008 Ch. 11 bankruptcy filing for his business, Custom Contractors, listed some $11 million in debt.

14.Marlin Briscoe

His trailblazing career and subsequent fall from grace is nothing short of legend in pro football history – not to mention the subject of a feature film due out early next year. Drafted by the Denver Broncos in 1968, Marlin “The Magician” Briscoe broke the color barrier halfway through his rookie season, becoming the first African-American starting quarterback in NFL history. He later played for the Miami Dolphins, San Diego Chargers, Detroit Lions and New England Patriots before retiring in 1976 to work as a municipal bonds broker in Los Angeles. His personal life – and personal finances – suffered a painful slide after that. An addiction to crack cocaine left Briscoe homeless and ultimately behind bars. Following his release and recovery, however, the Oakland, Calif.. native turned his life around – starting a football camp for kids and serving as the director of the Boys and Girls Club in Long Beach, Calif. He also mentors current NFL stars.

15.Raghib ‘Rocket’ Ismail

You’ve got to hand it to him. The Rocket doesn’t give up. Though he earned an estimated $18 million during his 10-year NFL career, most recently with the Dallas Cowboys, he lost most of it in a series of bad investment picks that began in 1991. They included a theme restaurant called Rock N’ Roll Café, the production of an inspirational religious movie, the music label COZ Records, a new cosmetic procedure that purportedly helped to oxygenate the skin, a phone-card dispensing company and a retail store called “It’s in the Name” where tourists could purchase framed calligraphy of names or proverb. All went belly up. Today, Ismail is listed among the investors of Bite Tech, Inc., which designs specialty mouth guards. He never filed for bankruptcy, still appears regularly on ESPN and works as an inspirational speaker, often at churches.

16.Johnny Unitas

His superstar career with the Baltimore Colts during the 1950s is widely credited with turning televised football into a national pastime – to this day his record of 47 consecutive games with a touchdown pass is considered by most to be unbreakable. Unfortunately, his prowess with the pigskin did not translate into business savvy. John “Johnny” C. Unitas, who was elected into the Hall of Fame in 1979, made a series of bad business moves both before and after he retired from the field in 1974. Investments in a bowling alley chain during the 1960s were less than profitable, as were subsequent real estate deals in Florida, a failed prime rib restaurant partnership and a company that made circuit boards, for which creditors were attempting to collect nearly $4 million in personally guaranteed loans from Unitas and his partners. The Hall of Fame QB filed for Chapter 11 bankruptcy in 1991, without disclosing his debts, to protect his personal assets from creditors.

17.Michael Vick

No financial fumble list would be complete without a mention of NFL bad boy Michael Vick. After being sentenced in 2007 to 23 months in jail for his involvement in an illegal dogfighting ring, the former Atlanta Falcons quarterback forfeited his record $130 million contract, along with an estimated $7 million a year in endorsement deals from Nike and Coca-Cola and everyone else. He negotiated for Ch. 11 bankruptcy in 2008, listing debt of $10 million to $50 million. But there’s still time for redemption. After his release from prison, Vick joined the Philadelphia Eagles in 2009 and 2010, earning the prestigious Comeback Player of the Year award. As a free agent this year, many predict another fat NFL contract for the record-breaking quarterback. Now, if he can just get those creditors off his back.

18.Deuce McAllister

As the New Orleans Saints all-time leading rusher, Dulymus “Deuce” McAllister raked in an estimated $70 million during his NFL career. Apparently, it wasn’t enough. Debt related to his failed Nissan car dealership in Jackson, Miss., including personal guarantees on loans for which he defaulted, forced the famous running back into Ch. 11 bankruptcy in 2010 – the same year he retired. Nissan has stated publicly that McAllister owed nearly $7 million, including interest, after defaulting on his debt and then exceeding his credit line. Today, McAllister still owns a luxury car dealership in Jackson, invests in the restoration of the historic King Edward Hotel in Jackson and runs the Catch 22 Foundation, dedicated to enhancing the lives of youth in Mississippi and Louisiana.

andriantoangkadirjo85 bottom line

– In most cases, this worst financial decision caused by : bad investment choices, spent frivolously, luxury lifestylefell victim to predatory advisors or assigned their less-than-qualified friends or family to handle their affairs. Or may be due to their risk-taking DNA, which is an asset on the field, but a liability when it comes to managing money.

– Some says it’s a FATE!! It would befall most anyone forced to manage overnight wealth.

What do you think ? Got some ideas, just write down !!

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Trickery thing in the world : Home Loan..

Posted by andriantoangkadirjo85 on March 21, 2011

This time I’m just tempted to discuss this topic again as yesterday I came across an article in Yahoo!Finance which quickly draw my attention !! The article’s titled : Losing Big – $65,000 Big – On Our First Home..

Here’s just the article :

Let me preface this by saying that I never wanted to buy a home. I knew the financial risks, the fact that in most cases you have to stay in a home a long time to even have a chance of making it a profitable investment, and that a home can take a lot of effort and money to maintain. My wife, on the other hand, just couldn’t fathom the idea of not purchasing a house once our son was born even though we had lived together happily in various apartments for almost 10 years. While I tried in vein to explain the many downsides to home ownership, I just couldn’t break through to her, and therefore gave in as any good husband should. Big mistake!

Three years after purchasing our home in the spring of 2008, my wife now sees the light and finds the idea of home ownership as repugnant as I always have. Due to a multitude of reasons and factors, we decided to put our home on the market. It’s now been over a year and we’ve yet to sell, but when we do, we stand to lose a boatload of money. As hard as it is to believe at times, and while the two often correlate, sometimes happiness really is more important than money.

Here’s our story.

Winter 2007

Once I gave in to my wife’s home ownership dreams, I focused on trying to make the best decision possible. We took our time, searching at a point in time in which we felt the market had bottomed (oops!) and during a time of year at which I hoped sellers would be desperate for offers and therefore willing to deal. We got pre-approved for our mortgage and set off on our home search in an area of Chicago’s near west suburbs where property taxes and crime were low, property values seemed reasonable as compared to recent years, and the homes were well-built.

After several months of searching we found a home that met our needs. It appeared to be in good condition and was reasonably priced. After a bit of negotiating we got the buyers down from their initial asking price of $320,000 to $295,000 with a $1,500 credit for a repairs that needed to be made. We were satisfied with the outcome and planned on many long years ahead of us in this happy home.

Winter 2009

Skip ahead two years, and as I mentioned, my wife has learned about the hardships of home ownership (i.e. a garage roof replacement, an awning replacement, a sump-pump system repair, and a laundry list of other repairs and maintenance items). Add to this the fact that the suburb we had selected was not all we thought it was cracked up to be, we have an aging parent in need of our support in another state, and other issues I won’t get into here, and we decided it was time to cut our losses and get on with life.

We contacted the same Realtor with whom we initially purchased the house and had her put it back on the market. She thought she had a potential buyer at $309,000, even in a declining market, so we were willing to let her try it at that price for a little while, even though we thought it was a bit outlandish. Again, big mistake!

Even though we quickly dropped the price to $289,000, I have a feeling we missed out on a bunch of potential buyers who came through in the first few months by being overpriced.

Spring 2011

Skip ahead again to the present. With continued real estate market issues, we now have our home listed at $249,000, a full $45,000 under our purchase price. Now you might be asking yourself why we don’t just take it off the market and wait out this rough patch. It’s a good question, one that I have asked myself a multitude of times, and one that’s hard to answer without a person being in our situation. Let’s just say that being closer to my ailing mother in Washington, our happiness, and the opportunity to be out from under what to us is a heavy burden, is worth the loss, be it a big one. So get ready for the numbers.

Even if we sell our home for the full asking price, which I don’t count on happening in this market, it will be well under the price we paid three years ago.

Loss of $45,000 on price of home
5% Realtor’s commission on $249,000 is $12,450
3% closing costs on $249,000 is $7,470
– Total losses on the sale of the home at its current price would be just under $65,000.

This doesn’t even factor in the increased costs of owning a home as compared with the apartment we were renting for $780 a month with free heat, water and trash. Things like annual property taxes, homeowner’s insurance, increased utilities, repairs and maintenance, interest on our mortgage, and similar costs add additional tens of thousands of dollars to our losses, unless you want to consider them costs of the opportunity to live in a house.

andriantoangkadirjo85 bottom line

– Many…many things happening in this world are certainly tricky things. And actually the human basics are IRRESISTIBLE!! What a correlation!! They’re usually packed in attractive way..such as in the case above, the Realtor might be have told they have buyer with good offer price, or while dealing to sell the property, the Realtor might say that the price is low & good & pushed to close the deal soon as possible. How tricky this is..

– Moreover about the fees..these just something many people don’t always aware, until they found themselves about the fact, that all these fees are also tricky.. I mean you never thought all these fees until bad things happens, and you lost bigload money with all these fees include in.

What an article..! What do you think ? Do you feel the same way ?

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