After the big shot.

On April 14, Don Calhoun woke up real sure of himself. He hadn't been to a Chicago Bulls basketball game in five years. Thanks to a friend's generosity, though, he had tickets for that night's match against the Miami Heat. And he was pumped. "I knew something great was bound to happen," he recalls.

Even as he took off from work that day, Calhoun shot a prophetic remark to a colleague: "Make sure you watch the game, they're going to call me down during half-time and I'm going to win a car!" This would indeed be his lucky night - but he had no idea how lucky.

By the third quarter, a Bulls staffer tapped Calhoun on the shoulder, offering him a chance to compete in a half-time three-quarter-court shot contest. He was one of 18,676 fans. It was his metallic gold hiking boots with the black rubber soles that got him noticed. The stakes, as it happened, turned out to be worth more than a Lamborghini, Rolls-Royce and Porsche combined - $1 million in cash.

Even though Calhoun played ball five times a week at the local YMCA in Bloomington, Ill., the odds weren't in his favor. All other 18 contestants from previous Bulls games that season threw up bricks. Only one of them even hit the rim. Besides, no Bulls player had ever hit a shot from the opposite foul line - not even Air Jordan. Who could have imagined that Calhoun would sink the unthinkable?

"Once I had the ball, I knew it was going in," recalls a confident Calhoun. The six-foot-four, 175-lb. fan took two giant strides and in one fell swoop, hurled the basketball 79-feet skyward. SWISSSSSH. The ball went in. The crowd roared. In those five seconds, the 24-year-old salesman's life changed forever. He walked off the court triumphant - and a million dollars richer.

Lucky shot? "I don't believe in luck or percentages," says Calhoun without blinking. "But I do believe in divine intervention."

Call it faith, fate or fortune. Since that night, Calhoun has hobnobbed with such sports legends as Magic Johnson, Muhammad Ali and Wilma Rudolph. Last June, he was feted at the National Sportsman of the Year Award. To top it off, he met President Clinton at the White House.

Still, Calhoun knows that with fame and fortune comes responsibility. He's not letting go of a dime without examining all options. "I get phone calls every day from stockbrokers and other sales agents," he says. "One stockbroker asked me to fork up $10,000 right over the phone and then got upset when I said no."

Out of the hundreds of calls, Calhoun says only one person offered to send a prospectus. That's okay. This first-time investor isn't about to get rooked. "I'm going to be very conservative with the money," says Calhoun, who is loading up on financial reading materials.

Smart move - considering he almost didn't get his money. American Hole-N-One Insurance Co., which underwrote the million-dollar-shot deal, at first refused to pay up. It wanted to disqualify him, arguing that Calhoun had played 11 games of college ball.

The event's sponsors, The Chicago Bulls, Coca-Cola and Lettuce Entertain You Enterprises, a Chicago restaurant chain, teamed up to see that Calhoun did, in fact, receive his purse: $50,000 a year over the next two decades.

Playing it super-safe, Calhoun deposited his first $50,000 cashier's check in a 3.5% passbook savings account. He knows, though, that keeping his cash in the bank won't net him appreciated wealth.

Putting his Money to Work

What then will the son of two working-class parents do with his winnings? Acquiring a host of material possessions is out - Calhoun is far too down-to-earth for that. In fact, he plans to keep his 1987 Ford Escort, despite persuasive tactics by car dealers (one Jaguar salesman went so far as to send over a few models to Calhoun's job). The house with the white picket fence is on hold, too, at least three years down the road. Right now, renting a one-family dwelling - shared with a friend for $275 a month - will do just fine.

Calhoun's top priority is completing a college education. He's determined to get a bachelor's degree in business by 1996. He had to drop out of Triton Community College in 1991 after two years." I couldn't afford it," he explains, adding that tuition, books and living expenses added up to $1,000 per semester.

The million-dollar shot put Calhoun back on a college campus this fall. In fact, he gave up his $5-an-hour job at Reliable Office Superstore a few months ago to become a full-time student.

He also wants to start an education fund for his three-year-old son, Clarence, named after Calhoun's oldest brother who died five years ago at the age of 20 in a car accident.

To assist Calhoun, BLACK ENTERPRISE asked three financial pros to review the findings of an extensive financial interview with him. The experts - Peggy Woodford Forbes, John W. Rogers and Eddie Brown - have been regular participants on the BE Investment Roundtable. Their analyses and Calhoun's financial data were then sent to a certified financial planner Charles Ross. Ross devised a specific plan to help Calhoun conserve and grow his small yearly fortune.

What does the future hold? Outfitted with a degree, Calhoun will head down the entrepreneurial path. Being his own boss is a lifelong dream. While ordering supplies at Reliable Office, he would fantasize about owning a distributorship. He plans to use part of his winnings as start-up capital for a business, which he'd like to open by 1997.

Calhoun admits he is looking forward to playing college sports. "I would love to play Division I NCAA basketball and eventually professional ball." It's doubtful Calhoun would make the NBA, but playing basketball has been a stepping-stone, nonetheless.

What's Calhoun's game plan now that he's made perhaps the biggest field goal in his life? He believes a chat with Air Jordan sums it up best. "What advice would you give a young man with dreams?" Calhoun asked the superstar. Jordan's answer: "Chase |em."

THE ADVICE

CHARLES ROSS, FINANCIAL MEDIA SERVICES

First of all, Calhoun has to get used to the responsibility of having more money, says Atlanta-based certified financial planner Charles Ross. Calhoun may be $1 million richer, but his winnings are spread out over 20 years (in $50,000 payments). Since he quit his job, Calhoun has no income to supplement the prize money for now. The bottom line: "We aren't talking about a lot of money," says Ross, host of the nationally syndicated radio show Your Personal Finance.

Tacking on the 5,000 he earned at Reliable Office Superstore to his first $50,000 payment Calhoun's 1993 income will be $55,000. With so much more dough on his hands, Calhoun has leapfrogged from the lower 15% individual tax bracket (below $20,325) to the upper 31% ($49,200+). After taxes, Calhoun has $38,962.

A financial snapshot of Calhoun's income, assets and liabilities reveals a net worth of about $36,750 (see chart). Since his expenses are low and he's young, Calhoun needs to concentrate on growing his money, says Ross. If he were to invest just $30,000, assuming an annual average return of 10%, this money would top $1.7 million in 20 years.

Ross recommends the following steps for a steady program of saving and investing:

* Create a budget. Calhoun needs to tally up his monthly expenses in order to determine what he needs to cover them. This will also help him figure out his "capital at work" (income minus fixed expenses), or the amount left for savings and investments. Good thing Calhoun isn't tempted by spending sprees - he can't afford them just yet

* Pay off all debt Calhoun is better off than the average person who totes up several loans and a walletful of credit card debt he is, however, burdened by $6,000 in student loans, at 6.2%. If he pays d off now - as opposed to stretching notes over a 15-year period - he will save $3,230 in interest payments.

* Build a cash reserve. To gird against unforeseen emergencies, Calhoun needs to stow away six months of his yearly budgeted expenses (an estimated $6,000). Ross suggests he park the money in a tax-exempt money market fund. Two solid picks: Dreyfus General Municipal Bond Fund (800-645-6561; minimum initial investment $2,500); and Strong US Treasury Money Fund (800-368-3863; $1,000 min.).

* Establish a credit history. Having good credit will be critical when Calhoun is ready to buy a home or set up his own shop. Now is an ideal time to acquire a line of credit For starters, he needs a credit card. (With his old $10,000 income, he didn't qualify for one.) To force discipline, he should go for an American Express card, so he can make small purchases but pay them right off.

* Save money for a down payment on a home. Though interest rates are at an all-time low, Calhoun a full-time student must put off buying property for a few years. In 1996, a one-family home in Bloomington, Ill., will cost about $B5,000 plus closing costs. Calhoun needs to accumulate 20% of that amount, or $17,000, for a down payment.

To reduce his mortgage (which in 1996 could be two percentage points higher than today), he should opt for a 15-year note. Monthly payments will be steeper - about $670 vs. $550 for a 30-year fixed-rate mortgage at 9%. But in the end, Calhoun will come up a winner-saving nearly $75,000 in finance charges and building up equity twice as fast.

* Get adequate life and health insurance coverage. individual coverage is expensive, but Calhoun can go with a higher deductible - $1,000 - to lower his premium to about $150 a month. If he's able to take advantage of his school's health plan, then he can get away with minimum medical coverage.

* Calhoun may be single, but he has a son. And anyone with children needs life insurance. A $100,000 term policy should set him back no more than $100 in annual premiums.

* Allocate assets in an investment portfolio. Minus his annual expenses, Calhoun has about $20,000 left for investments ($15,000 for the first year, allowing for an emergency fund). Ross says the right mix for the novice investor includes: 50% in growth mutual funds, 25% in aggressive growth funds and the remaining 25% in international funds. Top picks for starters: Neuberger & Berman Guardian Fund, Janus Fund and Acorn international Fund (see John Rogers' advice for more picks).

A steady-as-you-go fund, Neuberger & Berman Guardian seeks high-quality, undervalued companies. Calhoun should put 50% in this no-load fund (800-877-9700, minimum investment, $1,000; annualized 3-year return, 16%), Ross suggests. A conservative growth fund, it matches Calhoun's aversion to risk.

The Janus Fund should continue to profit from classic growth stocks. This no-load fund invests in industries experiencing increasing demand for their products and services. (800-525-8983; min. investment is $1,000; 3-year return, 18.31%).

A major player in the international sector, Acorn (800-922-6769) seeks out small foreign companies that stand to benefit from favorable economic and political trends. It has returned 21% since opening last year (min. investment $1,000).

* Create an education fund Calhoun has two options for setting up Clarence's education fund. He can accumulate $20,000, invest it in a moderate growth fund, such as Neuberger & Berman, and just leave it there. Or he can put away $2,643 in such a mutual fund every year over the next 14 years. By investing in a fund yielding 10%, Calhoun could pay for four years of public college, which will cost an estimated $85,337 (at an annual 5% rise in costs).

A convenient parking spot for college savings is a custodial account. Under the Uniform Gifts to Minors Act, Calhoun can give his son up to $10,000 a year and avoid any federal gift taxes. And as trustee, Calhoun would have access to the money.

Any earnings above and beyond $1,200 will be taxed at Calhoun's marginal tax rate. Once Clarence reaches 14, the "kiddie tax" kicks in at 15%.

* Devise a will. Calhoun desperately needs a will, particularly to ensure that Clarence inherits his prize money in the event of his death. Should Calhoun die without a will, his winnings would go to the State of Illinois.

* Get a retirement plan in gear. Since he isn't working, Calhoun can't benefit from the two most popular plans: individual retirement account (IRA) and 401 (k). His choices are very limited. He can get a tax-deferred variable annuity. Or he can wait until he starts his business and open up an IRA, Keogh or SEP (Simplified Employee Pension) plan. in 35 years, even $425.31 invested annually at 9% interest would accumulate to $100,000.

Calhoun can always redeem his mutual fund shares to raise the necessary capital for any business enterprise. But ideally, he shouldn't have to touch the money. Calhoun, says Ross, needs to "keep his portfolio simple, liquid and growing."

PEGGY FORBES, WOODFORD CAPITAL MANAGEMENT

Hefty fees and commissions can eat up as much as 8% of an investor's pot. Therefore, Calhoun needs to be very mindful of where he puts his stash, says Peggy Forbes, president and chief investment officer of Woodford Capital Management Inc., a New York-based investment advisory firm.

One way he can avoid charges is to buy Treasuries directly from the Federal Reserve. Treasuries are a safe bet, says Forbes, since today's environment for bonds with interest rate uncertainty is a treacherous one. Another benefit Interest earned is free from state and local taxes. As new money comes in, Calhoun can start to play with different investments - from small cap stocks to blue chips to foreign funds. This way his portfolio can brace changes in market cycles.

JOHN ROGERS, ARIEL CAPITAL MANAGEMENT

A good device for new investors to grow their savings is mutual funds. The right mix of stock funds and a bond fund will manage Calhoun's money safely and profitably, says John W. Rogers Jr., president and chairman of Ariel Capital Management Inc., a Chicago full-service asset management firm.

Rogers'top choices are: The Yacktman Fund and The Strong Opportunity Fund. These funds take into account Calhoun's low tolerance for risk and today's slightly overpriced market. Yacktman (800-525-8258; min. investment, $5,000) looks for undervalued stocks with promising product lines. Strong Opportunity (800-368-3863; min. investment, $1,000) picks shares in undervalued small to mid-sized companies that are selling cheaply relative to their market values.

EDDIE BROWN, BROWN CAPITAL MANAGEMENT

Before Calhoun embarks on an investment program, he must set up a realistic personal budget and live by it without changing his lifestyle, says Eddie Brown, president and chief investment officer of Baltimore-based Brown Capital Management Inc.

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