After the big shot - financial advice for Don Calhoun, who won $1 million in basketball shooting contest - 1993 Money Management Guide

Black Enterprise, Oct, 1993 by Carolyn M. Brown

Instead of letting his money sit in a savings account Calhoun should initially park it in a tax-exempt mutual fund. Also, to get it out of his system, he should set aside $5,000 as mad money.

In about two years, Calhoun will be ready to invest on a regular monthly basis. Brown suggests growth mutual funds and 10% in a global international fund.

Calhoun might also consider taking 30% of his portfolio to buy an income producing property (i.e., rental) to take further advantage of real estate tax breaks.

CALHOUN'S FINANCIAL SCORECORD

INCOME(*)
Winnings                   $50,000
Employment                   5,000
TOTAL                      $55,000

EXPENSES
Property Taxes                 600
Property Insurance           1,200
Housing (Rent/Expenses)      5,820
Food                           660
Auto Expenses                1,776
Charity                        120
Entertainment/Activities       360
Clothing                       660
School                       9,000
Taxes (Fed., State, S.S.)   12,296
Miscellaneous                  540
TOTAL                      $33,032

ASSETS
Savings                     40,000
1987 Ford Escort             1,500
Clothing/Jewelry             1,000
Household Goods                250
TOTAL                      $42,750

LIABILITIES
Student loan                 6,000
TOTAL                      $ 6,000

NET WORTH                  $36,750
DISCRETIONARY INCOME       $21,968

*Projected 1993