231–240 of 277 posts
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Of course. But you have to park the money somewhere while you learn about where to invest it. If you've got more than $250K, I'd split it up into multiple accounts at different banks.
I suspect this is per depositor not per account... but I'm not sure.
Olympic athletes are known to sell some of their team clothes after the games. I overheard a well-to-do family at Mammoth saying they bought the jackets off some US Olympic ski team members who were broke.
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Perhaps that could be better stated. Being a star athlete is highly correlated with having a risk insensitive personality. That type of personality also correlates with impulsive financial decisions. I'm no sure if that's all true of if it's anything more than correlation, but it makes some sense as a hypothesis.
Being a star athlete is highly correlated with having a risk insensitive personality. According to whom?
> Sometimes,though, a jock just can't shake the temptation to try to hit the jackpot. Butowsky believes that "there's something in an athlete's mentality"that drives him to swing for the fences financially--usually at his own peril."The solution to the problem is, without a doubt, education," the adviser says. "Change won't happen until grown men start wanting to learn."
Finding it pretty hard to muster up any kind of empathy for millionaire professional athletes.
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This highlights the problem-- the most "conservative" approach, a savings account, is actually TERRIBLE financial advice. First the money won't keep pace with inflation and second a bank failure will wipe out the fortune. That happened to savers in 2008, most notably the failure of IndyMac.
So- Your money not keeping pace with inflation is better than anyone profiled in the article managed. Worst case scenario, bank failure, they might still be better off.
The stereotype is that many of these athletes go broke because they are foolhardy with money. I appreciate that this article highlighted that a lot of these guys go broke because of scamming financial advisors. The athlete attempts to do the responsible thing and hires someone they are led to trust with managing their assets only to be ripped off. I'm not sure how financial literacy prevents this from happening when…
Agreed, look at it from their perspective. They haven't been around a lot of money before, they don't have a lot of friends who have been around a lot of money either, so they don't really know even what questions to ask to understand the people who are arguing to be their financial advisors. Perhaps major league sports would do well to help train their athletes in the basics of financial management in order to help…
The stereotype is that many of these athletes go broke because they are foolhardy with money. I appreciate that this article highlighted that a lot of these guys go broke because of scamming financial advisors. The athlete attempts to do the responsible thing and hires someone they are led to trust with managing their assets only to be ripped off. I'm not sure how financial literacy prevents this from happening when…
Agreed, look at it from their perspective. They haven't been around a lot of money before, they don't have a lot of friends who have been around a lot of money either, so they don't really know even what questions to ask to understand the people who are arguing to be their financial advisors. Perhaps major league sports would do well to help train their athletes in the basics of financial management in order to help…
I wholeheartedly agree that major league sports should provide financial management skills, however the same should also be provided at large corporations.
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How are you computing that? Perhaps you are forgetting that an investment still grows while you are withdrawing from it? Here is a calculator that helps you compute how much you can actually pull from it: https://www.money-zine.com/calculators/retirement-calculator... If you set the initial variables to: - Retirement age 40 - Life expectancy 83 - Annual Return 7% (typical of stocks) - zero out everything else (no pen…
This is not a good way to calculate it because it ignores volatility of the investment. There are decades of publications in the topic of sequence of returns and the impact on retirement. $25,000 is likely a little too low but $70,000 is way, way too high. Most people who've done research agree that something like $25,000 to $35,000 a year from $1,000,000 is reasonable for someone retiring extremely young.
As people point out the thing to remember is that your costs change too, your health care costs go up but if your family moves out and you pay off your house your outlays go down. "Downsizing" or reducing the owning of expensive things (especially ones that require maintenance) can really help your burn rate.
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I don't really see the issue unless there were incentives set up to encourage this and it wasn't properly disclosed. Usually when you trade with a bank desk you know that they're betting against you because they're the ones on the other side. If they weren't doing that then you'd always have to wait for a customer to take the opposite bet, but the market might move by the time such a customer appears. Generally you d…
As the article tells us, a lot of athletes walk into meetings with their advisers and just get snowed by a bunch of jargon they don't really understand. They're not necessarily sophisticated investors who even know to ask these questions
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Of course. But you have to park the money somewhere while you learn about where to invest it. If you've got more than $250K, I'd split it up into multiple accounts at different banks.
I suspect this is per depositor not per account... but I'm not sure.