Comments on: 60% of NBA Players Go Broke Within 5 Years of Retirement? http://allfinancialmatters.com/2008/04/09/60-of-nba-players-go-broke-within-5-years-of-retirement/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Sat, 21 Nov 2009 13:00:57 -0800 http://wordpress.org/?v=abc hourly 1 By: Phil A. http://allfinancialmatters.com/2008/04/09/60-of-nba-players-go-broke-within-5-years-of-retirement/comment-page-1/#comment-287922 Phil A. Sat, 19 Apr 2008 03:15:27 +0000 http://allfinancialmatters.com/2008/04/09/60-of-nba-players-go-broke-within-5-years-of-retirement/#comment-287922 It is pretty sad when there are sensible hard working people out there making under $20,000 a year with more savings to their name than some of these foolish and unwise basketball players. It is pretty sad when there are sensible hard working people out there making under $20,000 a year with more savings to their name than some of these foolish and unwise basketball players.

]]> By: Miguel http://allfinancialmatters.com/2008/04/09/60-of-nba-players-go-broke-within-5-years-of-retirement/comment-page-1/#comment-278538 Miguel Thu, 10 Apr 2008 15:18:34 +0000 http://allfinancialmatters.com/2008/04/09/60-of-nba-players-go-broke-within-5-years-of-retirement/#comment-278538 These issues are true of just about any profession where income is extremely lumpy (i.e. pay for performance) and job risk is extremely high (i.e. you're only as good as your last game, movie, book, script, deal, show, exibition, etc. or an injury could take you out tomorrow). I know many folks in these kinds of professions. Some handle it very maturely, some don't. Unfortunately, these professions usually require an extraordinary level of career focus, as well as the expenditure of significant sums to go with the lifestyle. Celebs need a certain amount of isolation and that costs a lot. Flying private costs, gated homes cost, limos cost, hotel suites cost, etc. Also, in show biz, things like personal trainers, fashion consultants, tips & tucks, etc. aren't just luxuries. Just ask any 3rd tier celeb who is famous enough to have fans stalking them, but not rich enough to afford the celeb perks. A certain % of fans can take things too far and become pretty scary(seriously, I've witnessed this a few times). So it really helps to have somebody, like a wife, mom, sibling, or trusted agent, who can act as manager and gate-keeper of the finances, and keep the entourage at bay. Like any close relationship, if you choose wrong, it will add up to a costly disaster. These issues are true of just about any profession where income is extremely lumpy (i.e. pay for performance) and job risk is extremely high (i.e. you’re only as good as your last game, movie, book, script, deal, show, exibition, etc. or an injury could take you out tomorrow). I know many folks in these kinds of professions. Some handle it very maturely, some don’t. Unfortunately, these professions usually require an extraordinary level of career focus, as well as the expenditure of significant sums to go with the lifestyle. Celebs need a certain amount of isolation and that costs a lot. Flying private costs, gated homes cost, limos cost, hotel suites cost, etc. Also, in show biz, things like personal trainers, fashion consultants, tips & tucks, etc. aren’t just luxuries. Just ask any 3rd tier celeb who is famous enough to have fans stalking them, but not rich enough to afford the celeb perks. A certain % of fans can take things too far and become pretty scary(seriously, I’ve witnessed this a few times).

So it really helps to have somebody, like a wife, mom, sibling, or trusted agent, who can act as manager and gate-keeper of the finances, and keep the entourage at bay. Like any close relationship, if you choose wrong, it will add up to a costly disaster.

]]> By: Ben http://allfinancialmatters.com/2008/04/09/60-of-nba-players-go-broke-within-5-years-of-retirement/comment-page-1/#comment-278537 Ben Thu, 10 Apr 2008 15:17:17 +0000 http://allfinancialmatters.com/2008/04/09/60-of-nba-players-go-broke-within-5-years-of-retirement/#comment-278537 Here's an article regarding the NFL players: http://www.news.harvard.edu/gazette/2007/03.08/09-nfl.html Here’s an article regarding the NFL players:

http://www.news.harvard.edu/gazette/2007/03.08/09-nfl.html

]]> By: No Debt Plan http://allfinancialmatters.com/2008/04/09/60-of-nba-players-go-broke-within-5-years-of-retirement/comment-page-1/#comment-278460 No Debt Plan Thu, 10 Apr 2008 14:01:02 +0000 http://allfinancialmatters.com/2008/04/09/60-of-nba-players-go-broke-within-5-years-of-retirement/#comment-278460 I honestly wish I could be a financial adviser to the sports elite, and not just because I think it would be fun to go all of the games. If anyone has any serious ideas on how to do this, I'm game. I think you should take Shaq's numbers with a grain of salt. He was going through divorce proceedings. I would imagine he would pump the numbers up to try and make sure the ex-wife gets as little as possible. Not that I believe he isn't blowing money left and right, that's pretty much a guarantee... I honestly wish I could be a financial adviser to the sports elite, and not just because I think it would be fun to go all of the games. If anyone has any serious ideas on how to do this, I’m game.

I think you should take Shaq’s numbers with a grain of salt. He was going through divorce proceedings. I would imagine he would pump the numbers up to try and make sure the ex-wife gets as little as possible. Not that I believe he isn’t blowing money left and right, that’s pretty much a guarantee…

]]> By: Cindy http://allfinancialmatters.com/2008/04/09/60-of-nba-players-go-broke-within-5-years-of-retirement/comment-page-1/#comment-277843 Cindy Wed, 09 Apr 2008 22:09:41 +0000 http://allfinancialmatters.com/2008/04/09/60-of-nba-players-go-broke-within-5-years-of-retirement/#comment-277843 I saw a news story about the NFL offering financial classes for their players. They showed them how to handle the money, what to watch out for, and how to invest. Sadly, I can't find any information about it online... I also read something where hotshot players pre-draft will go get loans, then end up in huge debt if they don't get drafted or get injured right away. I saw a news story about the NFL offering financial classes for their players. They showed them how to handle the money, what to watch out for, and how to invest. Sadly, I can’t find any information about it online…

I also read something where hotshot players pre-draft will go get loans, then end up in huge debt if they don’t get drafted or get injured right away.

]]> By: SavetotheFuture http://allfinancialmatters.com/2008/04/09/60-of-nba-players-go-broke-within-5-years-of-retirement/comment-page-1/#comment-277826 SavetotheFuture Wed, 09 Apr 2008 21:37:30 +0000 http://allfinancialmatters.com/2008/04/09/60-of-nba-players-go-broke-within-5-years-of-retirement/#comment-277826 It's hard to put ourselves in their shoes. No pun intended. Many of our sports stars do not come from wealthy families. They suddenly aquire this tremendeous amount of wealth, and they are not necessarily surrounded by people giving them the best financial advice. So they do the one thing anybody can do best, which is spend money. I can just imagine what I would that do with that type of cash flow : ) It’s hard to put ourselves in their shoes. No pun intended. Many of our sports stars do not come from wealthy families. They suddenly aquire this tremendeous amount of wealth, and they are not necessarily surrounded by people giving them the best financial advice. So they do the one thing anybody can do best, which is spend money.

I can just imagine what I would that do with that type of cash flow : )

]]> By: JLP http://allfinancialmatters.com/2008/04/09/60-of-nba-players-go-broke-within-5-years-of-retirement/comment-page-1/#comment-277820 JLP Wed, 09 Apr 2008 21:23:59 +0000 http://allfinancialmatters.com/2008/04/09/60-of-nba-players-go-broke-within-5-years-of-retirement/#comment-277820 Foobarista, That's a good point. Foobarista,

That’s a good point.

]]> By: AndyS http://allfinancialmatters.com/2008/04/09/60-of-nba-players-go-broke-within-5-years-of-retirement/comment-page-1/#comment-277811 AndyS Wed, 09 Apr 2008 21:08:21 +0000 http://allfinancialmatters.com/2008/04/09/60-of-nba-players-go-broke-within-5-years-of-retirement/#comment-277811 Easy come, easy go. However I think the NBA and all professional sports are getting better with financial planning and player education. There is nothing as sad as seeing a great past sports player struggling for money and having to resort to degrading ads or working in a "footlocker" ( I have seen this!) Easy come, easy go. However I think the NBA and all professional sports are getting better with financial planning and player education. There is nothing as sad as seeing a great past sports player struggling for money and having to resort to degrading ads or working in a “footlocker” ( I have seen this!)

]]> By: Foobarista http://allfinancialmatters.com/2008/04/09/60-of-nba-players-go-broke-within-5-years-of-retirement/comment-page-1/#comment-277810 Foobarista Wed, 09 Apr 2008 21:05:32 +0000 http://allfinancialmatters.com/2008/04/09/60-of-nba-players-go-broke-within-5-years-of-retirement/#comment-277810 The thing that kills so many of these guys is simple: entourages. All superstars have and to some extent need some sort of entourage, but guys like LeBron James and Tiger Woods are actually realizing value from their entourages. For other people, their entourages are full of parasites who blow money on partying and general stupidity. The thing that kills so many of these guys is simple: entourages. All superstars have and to some extent need some sort of entourage, but guys like LeBron James and Tiger Woods are actually realizing value from their entourages.

For other people, their entourages are full of parasites who blow money on partying and general stupidity.

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