Easy Come Easy Go

I thought this article posted on Yahoo was interesting because so many people believe that if they inherit or earn millions, they will have it for ever, which is contrary to the fact for some.

Money management is key to financial success, regardless of how much you have in the bank, it is imperative that the ramifications are considered prior to making substantial investments. Lose the cockiness, arrogance, and most of all do your home work prior to making substantial purchases or investments.

Grateful to have found work in this tough economy, Nick Martin teaches grape growing and winemaking each Saturday to a class of seven students in a simple metal building here at a satellite campus of Highland Community College.

Nick Martin (featured above) at the Highland Community College vineyard in Wamego, Kan., where he has taught winemaking since losing a fortune he got from the sale of the business his father founded. (Steve Hebert for The New York Times)

Then he drives 14 miles in an 11-year-old Ford Explorer to a sparsely furnished tract house that he rents for $900 a month on a dead-end street in McFarland, a smaller town. Just across the backyard is a shed that a neighbor uses to make cartridges for shooting the prairie dogs that infest the adjacent fields.

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

That luxurious world was fueled by a check Mr. Martin received in 1998 for $14 million, his share of the $600 million sale of Martin Media, an outdoor advertising business begun by his father in California in the 1950s. After taxes, he kept about $10 million. But as so often happens to those lucky enough to realize the American dream of sudden riches, the money slipped through the Martins' fingers faster than they ever imagined. They faced temptations to indulge, with the complexities and pressures of new wealth. And a pounding recession pummeled the value of their real estate and new financial investments, rendering their properties unaffordable.
The fortune evaporated in little more than a decade.

While many millions of Americans have suffered through this recession with only unemployment benefits to sustain them, Mr. Martin has reason to give thanks — he has landed a job at 59, however far away. He also had assets to sell to help tide his family over.
Still, Mr. Martin, a strapping man with a disarming bluntness, seemed dazed by it all. "We are basically broke," he said. Though he faulted the conventional wisdom of investing in stocks and real estate for some of his woes, along with poor financial advice, he accepted much of the blame himself. "We spent too much," he conceded. "I have a fourth grader, an eighth grader and a girl who just finished high school. I should have kept working and put the money in bonds."
Mrs. Martin recalled the summer night in 1998 when the family was having a spaghetti dinner at home in Paso Robles, in central California, and a bank representative called to ask where to wire the money. "It seemed like an unbelievable amount," she said regretfully.

Soon after the money arrived, the family decided to leave Paso Robles, amid some lingering tensions that Mr. Martin felt with his brother and brother-in law, who had run the business. Mr. Martin had never been in management at the billboard company, though he had been on the board and worked at Martin Brothers Winery, another family business. First, the Martins bought a house in Somerset, England, near the home of Mrs. Martin's parents, and he decided to write a novel. At about the same time, they spent $250,000 on the 3.5-acre camp with four structures on Tupper Lake, deep in the Adirondacks, as a summer home. They began extensive renovations at the lake, adding a stunning three-story boathouse and two other buildings.
Clouds gathered quickly. Life in England turned sour when Mr. Martin's novel, "Anthony: Conniver's Lament," did not sell, and the family's living costs — school fees, taxes and even advice for filing tax returns — swelled. In 2002, fed up with England, the Martins chose a new base, Vermont, and plunked down about $650,000 for a home there, as renovations continued on the Tupper Lake property.

By March 2007, the Martins were determined to move to the lake full time.
They managed their expenses for a while, but the costs mounted and mounted some more as they worked at refurbishing the Adirondack property — eventually totaling a staggering $5.3 million, Mr. Martin said. He poured another $600,000 into the Vermont property, he said.
He vacillates between blaming the builders and blaming himself for letting costs get out of hand. "We should have built something quite modest," he conceded.

Tensions rose in 2007 as summer came without any offers for the Vermont home.
"I thought that housing was going into a tailspin," he said. "I had the feeling that something bad was happening." So "we started selling cars, shotguns, antique furniture, whatever," Mr. Martin said. The Aston Martin fetched $395,000. With a big gap in his employment history, he found a job teaching English at Paul Smith's College near his home in Tupper Lake for $14,000 a year. For an additional $7,000, he coached the school's cross-country runners.

Then came the financial crisis. The markets plunged, as did the value of the Martins' trust. By fall 2008, with much of the family's net worth tied up in housing, Mr. Martin faced a series of margin calls. He needed more cash in his brokerage accounts because he had been tapping into a credit line with his investments as collateral. In January 2009, he cashed in a retirement account worth roughly $91,000. The houses could not be sold quickly. Though if they had been, some of the pressure would have lifted. "To maintain those things, you have to have a pretty good cash flow," Mr. Martin said.

The family ultimately put the Adirondacks property on the market for $4.9 million, then quickly slashed the price by half. Last month, the Martins got an offer for just half of the latest $2.5 million asking price. They have stopped making payments on their $1.1 million mortgage and their $53,000 in annual property taxes in the Adirondacks as well as the mortgage and taxes on their Vermont home. They cannot afford those obligations on Mr. Martin's current salary of $51,000. Their household income is down from $250,000 four years ago. At the moment, they are working with a loan modification unit at their bank. The lender proposed a new payment of $3,550 a month, reduced from $7,400. Given his current status, Mr. Martin argued, that it does not make much sense. He predicts that the house will ultimately be sold or taken over by the bank. Meanwhile, for the Christmas holidays and some of next summer, the family has found renters for the main house to help cover some of the costs.

Over lunch recently at Barleycorn's Downtown Bar and Deli in Wamego, Mr. Martin said he believed "the worst is behind us." Perhaps. But a forced restructuring can be difficult for children and spouses even in longstanding marriages. Sometimes he and his wife took it out on each other, he said. "She bought a bunch of horses. I blamed her for the horses. I bought cars. She blamed me for the cars — and the house being too big. We had a rough time," he acknowledged. "But I think we have gotten over that." Until Christmas, when she plans to join him, Mrs. Martin continues to work as a substitute teacher with autistic children at an Adirondacks elementary school: a $12,000-a-year job she loves in a place she says she is hesitant to leave. With their younger daughter, she has moved into a smaller building on their big property.

A lively woman who loves bike riding and horses, she has built a close network of friends. "What is the place in Kansas like?" she asked a reporter with some trepidation before her first visit at Thanksgiving. Mr. Martin, who moved to Kansas last April, brought the couple's 13-year-old son, Edward, to join him in the fall. He has been counting the days until his wife and Sophia, 9, come permanently. The older daughter, Mrs. Martin's from a previous marriage, has found work in Florida after finishing high school. In the meantime, Mr. Martin is also overseeing a one-acre vineyard beside the Oregon Trail Road, drawing on his knowledge of the wine industry from his California days.

He does what he can to lessen the family strains. "I have a temper. I have to control my temper," he said. "I could drink like a fish, but if you have problems in your life, drinking does not help." And he recites a quotation he holds dear : "The measure of a man is not whether he falls down, but whether he gets up again." Still, Mr. Martin is prone to ruminate over the loss of so much money. He is furious at the banks and the bankers, who he thinks gave him bad advice, and he still sounds angry at his brother and others who decided to sell the company and who he says gave him little voice. Some of them got more than $100 million each, he said, while he got $14 million, as did his father and his sister Ann, because they were all minority shareholders.
His brother-in-law David Weyrich said that if Mr. Martin had objections to the sale, he did not voice them. Mrs. Martin says she believes the move from California was motivated in part because he resented his brother and brother-in-law's bigger role in the community.
She also speculates that the Adirondacks estate was alluring partly as a way of keeping up. "I think he wanted to show his brother and brother-in-law that he had a big home, too," she said over dinner recently in Saratoga Springs, N.Y.

Mr. Martin disagreed. "We are Irish Catholics, and we thought it would be a compound for our family over generations," he said. After the cramped rooms at their house in England, he liked the big rooms, he said. "Sometimes, things don't work out."

As I see it, life is meant to be lived and money is meant to be spent, just be informed and not compulsive, but most importantly live your life to the fullest and without fear.

New Home for Wesley Snipes

Came across thisMIAMI (Reuters) - Actor Wesley Snipes was ordered on Friday to start serving a three-year prison sentence for failing to file income tax returns by a federal judge who rejected the Hollywood star's bid for a new trial.

"The defendant Snipes had a fair trial ... The time has come for the judgment to be enforced," U.S. District Judge Terrell Hodges said in his ruling.

Revoking bail for the 48-year-old star of the "Blade" trilogy, the judge ordered him to report to prison as directed by the U.S. Marshals Service or Bureau of Prisons.

It was not clear when or where Snipes would begin serving his time behind bars, however. His lawyer, Daniel Meachum, has said he would appeal if a new trial was denied.

Meachum told the Orlando Sentinel the ruling was shocking.

"Wesley is very disappointed but staying strong and positive," the newspaper quoted Meachum as saying.

Snipes had already lost his appeal of the prison sentence stemming from his 2008 conviction in Hodges' Ocala, Florida, court on three counts of "willful failure to file tax returns" for 1999 through 2001.

Snipes was found not guilty of five other counts in the high-profile felony tax case.

In seeking a new trial, Meachum had argued that jurors in the original trial were biased and that the prosecution's star witness had his own criminal problems.

At his sentencing, prosecutors said Snipes, a resident of Windermere, Florida, had earned more than $38 million since 1999 but had filed no tax returns or paid any taxes through October 2006.

Although he is best known for his roles in action films, Snipes has also had critical success in comedies like "White Men Can't Jump" in 1992. He played the lead in director Spike Lee's interracial drama "Jungle Fever" in 1991 and also played the jazz saxophonist in Lee's "Mo' Better Blues" in 1990.

Eric Thompson, a supervisor in the U.S. Marshals Service office in Orlando, Florida, said the Bureau of Prisons would notify Snipes and his lawyer of a surrender date.

"He'll probably get it by certified mail," Thompson said.

He declined to say what prison was likely to be selected for Snipes except to say that it would not be in Florida.

A listing for Snipes already posted on the Federal Bureau of Prisons website says his prisoner ID or registration number as 43355-018, his location is "in transit" and his release date is "unknown."

(Reporting by Tom Brown, additional reporting by Pascal Fletcher; Editing by Doina Chiacu)

1.5 Million Dollar Fine For Music Downloading

Read this on Yahoo.com and thought it worthy of more exposure. What's the value of a song? Jammie Thomas-Rasset has spent the last few years in court debating that question. The Minnesota mother of four is being penalized for illegally downloading and sharing 24 songs on the peer-to-peer file-sharing network Kazaa in 2006, but how much she owes the record labels has been in question. The jury in her third trial has just ruled that Thomas-Rasset should pay Capitol Records $1.5 million, CNET reports, which breaks down to $62,500 per song. It's a heavy penalty considering the 24 tunes would only cost approximately $24 on iTunes, which was Thomas-Rasset' argument, too.

Thanks to Thomas-Rasset's colorful case, she has become the public face of the record industry's battle with illegal downloaders. In her first trial, in 2007, the jury demanded she pay $222,000 for violating the copyright on more than 1,700 songs by Green Day, Aerosmith and Richard Marx, to name a few. (Marx said he was "ashamed" to be associated with the "farcical" prosecution of an illegal downloader.) Thomas-Rasset maintained she wasn't the computer user who did the file sharing, and her legal team cited an error in jury instruction to secure a second trial in 2009 that ended with a much harsher result: an astronomical fine of $1.92 million. However, earlier this year a U.S. District Court judge found the $1.92 million penalty against Thomas-Rasset to be "monstrous and shocking" and "gross injustice" before lowering it to $54,000, or $2,250 a song. Thomas-Rasset and her legal team decided to appeal that decision, too.

The Recording Industry Association of America (RIAA), the organization that represents the four major record labels, was pleased by the most recent decision, even if it has no intention to collect the $1.5 million from Thomas-Rasset. "Now with three jury decisions behind us along with a clear affirmation of Ms. Thomas-Rasset's willful liability, it is our hope that she finally accepts responsibility for her actions," the RIAA said in a statement. Earlier this year, the RIAA offered Thomas-Rasset the opportunity to end the legal battle for $25,000 and an admission of guilt; Thomas-Rasset declined.

Burying a Midwestern mom in insurmountable debt isn't the best publicity move, so rather than argue the labels are entitled to the cash, the RIAA has sought to make this trial into a cautionary tale for anyone considering illegally downloading music -- a reminder that there are penalties. But as the constantly declining weekly Nielsen SoundScan sales figures demonstrate, nothing seems to have deterred music fans from stealing rather than purchasing songs and albums. And in a digital world now dominated by Bit Torrent and Rapidshare, a trial over a music-sharing dinosaur like Kazaa seems nothing but antiquated. (Last month, after a decade of illegal file sharing, peer-to-peer service LimeWire was shut down by the government, much to the surprise of the millions who thought LimeWire had faded years ago into the Internet ether.)

Still, Thomas-Rasset and her legal team are already making plans to appeal, setting the stage for a fourth trial. "The fight continues," promised Thomas-Rasset's lawyer Kiwi Camara. Even if Thomas-Rasset were to win the next trial, the RIAA would likely appeal that decision to ensure that copyright infringement without penalization won't happen. This story has the potential to drag on well into the next decade -- when for $1.5 million, all of Thomas-Rasset's four kids could finish law school and take up the fight on her behalf.

Bush Admits Kanye Struck A Nerve

I think this is a mere PR tactic, Bush will do anything to sell his book, he claims Kanye's remark: "Bush does not care about Black people" hurt his feelings. Kanye was responding to Bush's lack of attention given to the victims of Hurrican Katrina.

Yahoo posted the following article, can you imagine being such a solider of pop culture that your activism would warrant you making the pages of a book written by a President? Wouldn't such an inclusion make your family proud? Wouldn't it be a bragging right to share with your grandchildren? Shouldn't it get you an automatic NAACP Image Award? Maybe the above would be the case if the President actually had something good to say about you.

But when President George W. Bush mentions Kanye West in his forthcoming book, "Decision Points," he's not singing the praises of the Chicago rapper who slammed him on a telethon for the victims of Hurricane Katrina, a week after numerous gulf coast cities were destroyed by the devastating storm and its aftermath. [Bush admits he considered replacing Cheney] Bush expressed his frustration with the "Runaway" singer in an interview with the "Today Show"'s Matt Lauer to air Monday on NBC's "Matt Lauer Reports."

When Lauer asked Bush if he remembered the comments Kanye made about him, President Obama's predecessor offered a matter-of-fact response. "Yes, I do. He called me a racist," Bush told Lauer. Lauer clarified that Kanye did not literally call Bush a racist but instead said, "George Bush doesn't care about Black people." But Bush maintained his stance.

"That's - 'he's a racist,'" Bush said. "And I didn't appreciate it then. I don't appreciate it now. It's one thing to say, 'I don't appreciate the way he's handled his business.' It's another thing to say, 'This man's a racist.' I resent it, it's not true, and it was one of the most disgusting moments in my Presidency."

Lauer quoted an excerpt from the book on the matter: "I faced a lot of criticism as President. I didn't like hearing people claim that I lied about Iraq's weapons of mass destruction or cut taxes to benefit the rich. But the suggestion that I was racist because of the response to Katrina represented an all time low." [Kanye collaborating with Jay-Z on album]
Bush said he still feels the same way and added that Kanye's comments upset him because it was not reflective of his work. "My record was strong I felt when it came to race relations and giving people a chance. And--it was a disgusting moment," Bush said.

Lauer asked Bush if he was concerned that some might be upset that he has placed so much emphasis on being angry about someone criticizing his responsiveness to the hurricane victims as opposed to being saddened by the impact of "watching the misery in Louisiana."
Bush said no. "I also make it clear that the misery in Louisiana affected me deeply as well," he said. "There's a lot of tough moments in the book. And it was a disgusting moment, pure and simple." If the saying is true that no publicity is bad publicity, getting this shout out from President Bush can only help the record sales of Kanye's "My Beautiful Dark Twisted Fantasy" album out in a few weeks.