The homeless blogger who became a millionaire overnight
March 24, 2015 9:04 AM Subscribe
"I simply can’t afford to fuck this up, and if I’m drinking, I certainly would. Either I would waste all the money or kill myself". Mike Wille was the homeless loner who enraptured legions with his funny and touching stories on The Ground Score blog. After his mother’s death, he inherited $1.8m and a house near New Orleans.
I'd sell that house and get the hell away from New Orleans...
posted by Windopaene at 9:12 AM on March 24, 2015 [2 favorites]
posted by Windopaene at 9:12 AM on March 24, 2015 [2 favorites]
Thus, our findings suggest that skepticism regarding the long-term impact of cash transfers may be warranted.
posted by leotrotsky at 9:15 AM on March 24, 2015
posted by leotrotsky at 9:15 AM on March 24, 2015
I'd sell that house and get the hell away from New Orleans
Given the article's description it's probably in Slidell anyhow.
posted by RogerB at 9:19 AM on March 24, 2015
Given the article's description it's probably in Slidell anyhow.
posted by RogerB at 9:19 AM on March 24, 2015
I'd sell that house and get the hell away from New Orleans...
....Unless....
The article says that he sold most of the furniture and replaced it with instruments and sound equipment. I wonder - is the building itself big enough to become a whole full-fledged recording studio?
posted by EmpressCallipygos at 9:21 AM on March 24, 2015
....Unless....
The article says that he sold most of the furniture and replaced it with instruments and sound equipment. I wonder - is the building itself big enough to become a whole full-fledged recording studio?
posted by EmpressCallipygos at 9:21 AM on March 24, 2015
Highly intelligent, Mike could probably hold a job despite his handicap. He was not, however, what they call in New Orleans a “fauxbeaux”— one of those grungy traveler kids who begs for change even though they have a safety net.Fauxbeaux? Er, they refer to a dilettante part-time panhandler as several false beaus or dandies? I think this coinage should be spelled faux-bo.
God, I miss editors.
posted by ricochet biscuit at 9:38 AM on March 24, 2015 [13 favorites]
I think this coinage should be spelled faux-bo.
Don't people in NOLA use "fake" French or Cajun spelling? Like "Geaux Tigers" ("go LSU Tigers")?
posted by nathancaswell at 9:41 AM on March 24, 2015 [1 favorite]
Don't people in NOLA use "fake" French or Cajun spelling? Like "Geaux Tigers" ("go LSU Tigers")?
posted by nathancaswell at 9:41 AM on March 24, 2015 [1 favorite]
Er, they refer to a dilettante part-time panhandler as several false beaus or dandies?
Using the -eaux suffix to signify cutesy Frenchness in ways that make absolutely no grammatical sense is a genuine Louisiana thing, yes.
posted by RogerB at 9:41 AM on March 24, 2015 [12 favorites]
Using the -eaux suffix to signify cutesy Frenchness in ways that make absolutely no grammatical sense is a genuine Louisiana thing, yes.
posted by RogerB at 9:41 AM on March 24, 2015 [12 favorites]
There, you see? So why the hell do I have to work hard and pay taxes to support handouts to a bunch of bums who are just too damn lazy and self-entitled to get off their asses and inherit $1.8 million and a house near New Orleans like this guy? [/Republican]
posted by Naberius at 9:43 AM on March 24, 2015
posted by Naberius at 9:43 AM on March 24, 2015
“Three out of five of our siblings have committed suicide. Mike’s mother is the third,”
I hope to God that Mike spends some of his inheritance on mental health treatment - therapy and/or meds. It sounds like there is depression, at least, running through the family line, and all those drugs and alcohol Mike is so fond of is self-medicating.
The Guardian article doesn't say whether Mike has ever availed himself of professional mental health services - but now that he has money, he can certainly afford insurance and medical treatment now, and it's never too late to get help.
posted by Rosie M. Banks at 9:59 AM on March 24, 2015 [8 favorites]
I hope to God that Mike spends some of his inheritance on mental health treatment - therapy and/or meds. It sounds like there is depression, at least, running through the family line, and all those drugs and alcohol Mike is so fond of is self-medicating.
The Guardian article doesn't say whether Mike has ever availed himself of professional mental health services - but now that he has money, he can certainly afford insurance and medical treatment now, and it's never too late to get help.
posted by Rosie M. Banks at 9:59 AM on March 24, 2015 [8 favorites]
Still, the bum leg helped Mike nurture a negative outlook that, once he became teenager, fractured his relationship with his already volatile parents.
Mad Mike chose homelessness, feeling cast out from normal society.
“Three out of five of our siblings have committed suicide. Mike’s mother is the third,” ...
I really wish that the article would just spell it out verbatim, that Mike is mentally ill and has inherited that illness through his parents. Instead of trying to hide it by blaming his bum leg and being a teenager. Not once does it suggest that gee, maybe some treatment could help. Hiding the realities helps no one.
On preview, was going to add some stuff about exactly what Rosie M. Banks said.
posted by Melismata at 10:05 AM on March 24, 2015 [4 favorites]
Mad Mike chose homelessness, feeling cast out from normal society.
“Three out of five of our siblings have committed suicide. Mike’s mother is the third,” ...
I really wish that the article would just spell it out verbatim, that Mike is mentally ill and has inherited that illness through his parents. Instead of trying to hide it by blaming his bum leg and being a teenager. Not once does it suggest that gee, maybe some treatment could help. Hiding the realities helps no one.
On preview, was going to add some stuff about exactly what Rosie M. Banks said.
posted by Melismata at 10:05 AM on March 24, 2015 [4 favorites]
I grew up in Nawlins. I can attest that folks there put the "-eaux" ending on everything humanly possible as a signifier of place.
I wish good luck to this guy. It sounds like he's being pretty sensible about this sudden change in his fortunes: he's buying a bunch of tools for what he does best, and putting most of the money out of reach. If he can get his chemical habits under control then he's probably got enough of a runway to turn "playing music" into something that pays all his bills.
posted by egypturnash at 10:14 AM on March 24, 2015
I wish good luck to this guy. It sounds like he's being pretty sensible about this sudden change in his fortunes: he's buying a bunch of tools for what he does best, and putting most of the money out of reach. If he can get his chemical habits under control then he's probably got enough of a runway to turn "playing music" into something that pays all his bills.
posted by egypturnash at 10:14 AM on March 24, 2015
The article says that he sold most of the furniture and replaced it with instruments and sound equipment. I wonder - is the building itself big enough to become a whole full-fledged recording studio?
If so, he is well on his way to having $0.8M!
posted by Steely-eyed Missile Man at 10:23 AM on March 24, 2015 [2 favorites]
If so, he is well on his way to having $0.8M!
posted by Steely-eyed Missile Man at 10:23 AM on March 24, 2015 [2 favorites]
The po-mo bobo fauxbeaux of Soho are the worst.
(I once saw one pogo slo-mo through the no-go part of Togo. His clothes were mostly boho but his polo had a logo of a go-go dancer solo. I hit him with my oboe.)
posted by kyrademon at 10:24 AM on March 24, 2015 [21 favorites]
(I once saw one pogo slo-mo through the no-go part of Togo. His clothes were mostly boho but his polo had a logo of a go-go dancer solo. I hit him with my oboe.)
posted by kyrademon at 10:24 AM on March 24, 2015 [21 favorites]
If he can get his chemical habits under control then he's probably got enough of a runway to turn "playing music" into something that pays all his bills.
I guess that hinges on how one defines "pays his bills". $1.8mm is easily enough to pay one's living expenses with just the interest/capital gains, even without living particularly frugally. Of course, if you throw spending disci
posted by indubitable at 10:32 AM on March 24, 2015
I guess that hinges on how one defines "pays his bills". $1.8mm is easily enough to pay one's living expenses with just the interest/capital gains, even without living particularly frugally. Of course, if you throw spending disci
posted by indubitable at 10:32 AM on March 24, 2015
It sounds like he's being pretty sensible about this sudden change in his fortunes: he's buying a bunch of tools for what he does best, and putting most of the money out of reach.
Well, he hasn't done that. He is SAYING he is going to do it (after he finishes buying music gear, buying a car, and paying off his friend's family's "tens of thousands" of dollars in debt). I wish him well and I hope he proves me wrong, but the only thing that counts from people with substance abuse histories is actions; you need to discount our sworn good intentions with a quickness, if you know what's good for you.
posted by thelonius at 10:32 AM on March 24, 2015 [5 favorites]
Well, he hasn't done that. He is SAYING he is going to do it (after he finishes buying music gear, buying a car, and paying off his friend's family's "tens of thousands" of dollars in debt). I wish him well and I hope he proves me wrong, but the only thing that counts from people with substance abuse histories is actions; you need to discount our sworn good intentions with a quickness, if you know what's good for you.
posted by thelonius at 10:32 AM on March 24, 2015 [5 favorites]
[argh, stupid phone]
...spending discipline completely out the window and start blowing it all on recording equipment, you'll rapidly return to the place where you have to consider how you will pay your living expenses.
posted by indubitable at 10:35 AM on March 24, 2015 [3 favorites]
...spending discipline completely out the window and start blowing it all on recording equipment, you'll rapidly return to the place where you have to consider how you will pay your living expenses.
posted by indubitable at 10:35 AM on March 24, 2015 [3 favorites]
Just to throw some hard numbers out, 4% of $1.8mm is $72k – that's more than a lot of us working people make in a year and it would probably be at more favorable tax rates. 4% would be easy to meet annually even with a very conservative portfolio, and every dollar not spent below that amount compounds and just adds to the pile. And on the expenses side, he already has a house, so no mortgage or rent payments. In summary, 1.8 million is a fuckton of money.
posted by indubitable at 11:18 AM on March 24, 2015 [2 favorites]
posted by indubitable at 11:18 AM on March 24, 2015 [2 favorites]
4% would be easy to meet annually even with a very conservative portfolio, and every dollar not spent below that amount compounds and just adds to the pile.
You'd be surprised. Interest rates are not your friend right now. The FlNRA/Bloomberg Active U.S. Corporate Bond Index (Investment Grade) is yielding 3.45%. You can juice that a bit with High Yield, but you're getting volatility and default risk in return. Equities will give you a higher return over time, but you're sacrificing current income. This guy needs income.
Even if you try to split the difference and go for high dividend yield stocks, you're still won't be able to sustainably reach the yield you'd get with bonds (S&P dividend yield is at 1.88% right now).
posted by leotrotsky at 11:50 AM on March 24, 2015 [1 favorite]
You'd be surprised. Interest rates are not your friend right now. The FlNRA/Bloomberg Active U.S. Corporate Bond Index (Investment Grade) is yielding 3.45%. You can juice that a bit with High Yield, but you're getting volatility and default risk in return. Equities will give you a higher return over time, but you're sacrificing current income. This guy needs income.
Even if you try to split the difference and go for high dividend yield stocks, you're still won't be able to sustainably reach the yield you'd get with bonds (S&P dividend yield is at 1.88% right now).
posted by leotrotsky at 11:50 AM on March 24, 2015 [1 favorite]
Honestly, if I had his problems, I'd go to a good reputable investment firm, have them put it in something that pays out on a monthly basis for spending money, and never, ever touch the principle. But, of course, I don't have his problems.
posted by Blackanvil at 11:59 AM on March 24, 2015
posted by Blackanvil at 11:59 AM on March 24, 2015
Well, "very conservative portfolio" in my mind would be 50/50 stocks/bonds in index funds, but OK, let's go with 3.45%. That's still $62k/year with, again, no housing payment. A young, single person can easily live on half as much when they're basically retired and all their time belongs to them.
posted by indubitable at 12:02 PM on March 24, 2015
posted by indubitable at 12:02 PM on March 24, 2015
Except that they're not seeing any portfolio growth if they're 100% bonds, which means inflation eats them away over time. Your 50/50 mix would only get them 1/2 of the 3.45% (the rest is in equities), so 31k per year.
It's not the high life by any means.
It's a moot point, of course. He'll be broke in less than 5 years.
posted by leotrotsky at 12:24 PM on March 24, 2015 [1 favorite]
It's not the high life by any means.
It's a moot point, of course. He'll be broke in less than 5 years.
posted by leotrotsky at 12:24 PM on March 24, 2015 [1 favorite]
And on the expenses side, he already has a house, so no mortgage or rent payments.
High property taxes?
posted by Melismata at 12:26 PM on March 24, 2015
High property taxes?
posted by Melismata at 12:26 PM on March 24, 2015
leotrotsky > This guy needs income.
Does he need very much income? If we assume the house is paid for, and he'll buy his car outright, that's two major money sinks he doesn't have to worry about. No wife, no kids. For now. That leaves food, utilities, car/health insurance, clothes, and entertainment. Oh and taxes*.
Barring major catastrophes or dumbass attacks, Mike's set for a good while. I wish him luck.
* Property taxes in Louisiana are a joke.
posted by egypturnash at 12:41 PM on March 24, 2015
Does he need very much income? If we assume the house is paid for, and he'll buy his car outright, that's two major money sinks he doesn't have to worry about. No wife, no kids. For now. That leaves food, utilities, car/health insurance, clothes, and entertainment. Oh and taxes*.
Barring major catastrophes or dumbass attacks, Mike's set for a good while. I wish him luck.
* Property taxes in Louisiana are a joke.
posted by egypturnash at 12:41 PM on March 24, 2015
When I was in the seventh grade, she tried to kill herself in front of me because I got a D in history and I said I didn’t care.
This one event alone sounds horribly traumatic, and this is without getting into the 3 out of 5 siblings of his mother's generation committing suicide. I agree that rather than making this article about homelessness being a sort of lifestyle choice because of his physical disability, they could have also addressed the major mental illness red flags popping up all over this story. In particular, it would be worth tying this in to the fact that mental illness has a huge correlation with homelessness.
Reading this article, I was reminded of how several years back I came to the conclusion that I would never want to win the lottery. As a teenager, I saw how quickly my parents burned through their money when we went from scraping by on $40,000 a year for a family of three to six figures, only to lose almost everything a few short years later. I'm sure some people would be better equipped to handle a sudden windfall, but I don't think I'm one of them. I just would never want to have so much money that dropping several thousand dollars on multiple luxury items seemed like no big deal.
I don't mean this in any way to be judgmental of people who are in that position. More power to you! But I just don't see it ending well for me.
I really hope this turns out to be one of the best things that happens in this guy's life, and not one of the worst. And like Rosie M. Banks, I hope the next thing he invests in is lots of therapy.
posted by litera scripta manet at 12:42 PM on March 24, 2015 [1 favorite]
This one event alone sounds horribly traumatic, and this is without getting into the 3 out of 5 siblings of his mother's generation committing suicide. I agree that rather than making this article about homelessness being a sort of lifestyle choice because of his physical disability, they could have also addressed the major mental illness red flags popping up all over this story. In particular, it would be worth tying this in to the fact that mental illness has a huge correlation with homelessness.
Reading this article, I was reminded of how several years back I came to the conclusion that I would never want to win the lottery. As a teenager, I saw how quickly my parents burned through their money when we went from scraping by on $40,000 a year for a family of three to six figures, only to lose almost everything a few short years later. I'm sure some people would be better equipped to handle a sudden windfall, but I don't think I'm one of them. I just would never want to have so much money that dropping several thousand dollars on multiple luxury items seemed like no big deal.
I don't mean this in any way to be judgmental of people who are in that position. More power to you! But I just don't see it ending well for me.
I really hope this turns out to be one of the best things that happens in this guy's life, and not one of the worst. And like Rosie M. Banks, I hope the next thing he invests in is lots of therapy.
posted by litera scripta manet at 12:42 PM on March 24, 2015 [1 favorite]
Your 50/50 mix would only get them 1/2 of the 3.45% (the rest is in equities), so 31k per year.
I'm not sure why you're differentiating between income from a dividend/interest payment and income from realized capital gains, but there is no reason to do that. The only way they're different is that capital gains and certain dividends receive more favorable tax treatment in the US. And bonds most certainly can appreciate in value, as anyone who has held Treasury bonds for the past 10 years will tell you.
Seriously, if you have $1.8mm and a house and hate spending 40 hours of every week beholden to someone else's whims, retire now.
posted by indubitable at 12:44 PM on March 24, 2015
I'm not sure why you're differentiating between income from a dividend/interest payment and income from realized capital gains, but there is no reason to do that. The only way they're different is that capital gains and certain dividends receive more favorable tax treatment in the US. And bonds most certainly can appreciate in value, as anyone who has held Treasury bonds for the past 10 years will tell you.
Seriously, if you have $1.8mm and a house and hate spending 40 hours of every week beholden to someone else's whims, retire now.
posted by indubitable at 12:44 PM on March 24, 2015
That leaves food, utilities, car/health insurance, clothes, and entertainment. Oh and taxes*.
And weed.
posted by thelonius at 12:57 PM on March 24, 2015
And weed.
posted by thelonius at 12:57 PM on March 24, 2015
I'm not sure why you're differentiating between income from a dividend/interest payment and income from realized capital gains, but there is no reason to do that. The only way they're different is that capital gains and certain dividends receive more favorable tax treatment in the US. And bonds most certainly can appreciate in value, as anyone who has held Treasury bonds for the past 10 years will tell you.
Um, because capital gains are not predictable in any given year, so you shouldn't be relying upon them for income? Markets go up and down. There's no assurance you're going to be able to withdraw gains. By contrast, unless the company defaults, you're getting that bond income.
And, sure, bond can appreciate in a falling interest rate environment, but no average joe should be buying bonds with an eye towards appreciation.
posted by leotrotsky at 12:59 PM on March 24, 2015
Um, because capital gains are not predictable in any given year, so you shouldn't be relying upon them for income? Markets go up and down. There's no assurance you're going to be able to withdraw gains. By contrast, unless the company defaults, you're getting that bond income.
And, sure, bond can appreciate in a falling interest rate environment, but no average joe should be buying bonds with an eye towards appreciation.
posted by leotrotsky at 12:59 PM on March 24, 2015
Seriously, if you have $1.8mm and a house and hate spending 40 hours of every week beholden to someone else's whims, retire now.
Um, no. Everybody's situation is different, and for some folks that is absolutely not sound advice.
posted by leotrotsky at 1:05 PM on March 24, 2015
Um, no. Everybody's situation is different, and for some folks that is absolutely not sound advice.
posted by leotrotsky at 1:05 PM on March 24, 2015
Mod note: Folks, maybe drop the general-investment-philosophy sidebar?
posted by LobsterMitten (staff) at 1:08 PM on March 24, 2015 [2 favorites]
posted by LobsterMitten (staff) at 1:08 PM on March 24, 2015 [2 favorites]
Er, they refer to a dilettante part-time panhandler as several false beaus or dandies?
Using the -eaux suffix to signify cutesy Frenchness in ways that make absolutely no grammatical sense is a genuine Louisiana thing, yes.
Eaux, I was not fully aware of this. Thanks for letting me kneaux.
posted by ricochet biscuit at 1:09 PM on March 24, 2015 [4 favorites]
Using the -eaux suffix to signify cutesy Frenchness in ways that make absolutely no grammatical sense is a genuine Louisiana thing, yes.
Eaux, I was not fully aware of this. Thanks for letting me kneaux.
posted by ricochet biscuit at 1:09 PM on March 24, 2015 [4 favorites]
Eaux, I was not fully aware of this. Thanks for letting me kneaux.
Eaux you! Geaux on then.
posted by leotrotsky at 1:11 PM on March 24, 2015
Eaux you! Geaux on then.
posted by leotrotsky at 1:11 PM on March 24, 2015
Today's millionaire (1.8m) is not yesterday's millionaire.
posted by notreally at 1:37 PM on March 24, 2015
posted by notreally at 1:37 PM on March 24, 2015
What is the contemporary equivalent of "let them eat cake," Alex? We're on a good run here, let's finish the category: I'll take Obliviously Bourgeois for $2000.
posted by RogerB at 2:13 PM on March 24, 2015
posted by RogerB at 2:13 PM on March 24, 2015
I'd sell that house and get the hell away from New Orleans...
Seriously, from everything i've seen and heard NOLA is basically the velvet rut of lifestyle homelessness and alcoholism. More gutter punks, squats, and hobos than almost anywhere else i've heard of. Even some of my friends who hop trains flat out refuse to go there because it's a black hole.
If you already have experience with homeless and substance abuse and are trying to get away from it, yea, shit place to be.
posted by emptythought at 7:52 PM on March 24, 2015
Seriously, from everything i've seen and heard NOLA is basically the velvet rut of lifestyle homelessness and alcoholism. More gutter punks, squats, and hobos than almost anywhere else i've heard of. Even some of my friends who hop trains flat out refuse to go there because it's a black hole.
If you already have experience with homeless and substance abuse and are trying to get away from it, yea, shit place to be.
posted by emptythought at 7:52 PM on March 24, 2015
My thought exactly
posted by Windopaene at 8:52 PM on March 24, 2015
posted by Windopaene at 8:52 PM on March 24, 2015
Nouveau riche. Seaux geauxche.
posted by quinndexter at 12:41 AM on March 25, 2015
posted by quinndexter at 12:41 AM on March 25, 2015
His last thought that he should start a family because he has resources to take care of one now is sad. I don't think he has nearly enough for that. I even suspect he'll run out within a decade by himself and we'll be reading a new article about how he blew $1.8M and lost his home.
posted by pez_LPhiE at 11:00 AM on March 25, 2015
posted by pez_LPhiE at 11:00 AM on March 25, 2015
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posted by leotrotsky at 9:09 AM on March 24, 2015 [6 favorites]