Is there any excuse for the modern nba player to go broke after retirement

[lib123]

Also, blame rappers and moguls like Birdman that make a lot of young black players pressured into stunting like him, in order to be authentic to the eyes of many.

I blame Wayne more than Birdman. That line “it ain’t trickin’ if you got it” became the go to excuse for these dudes tricking off on women over the last 20 years.

 

[lib123]

This is the part that somehow is still overlooked. If you make $60 mil a year, you will be lucky to see $25 after federal and state taxes (even in yours dont have em you gotta pay in every state you play games in). Then you got agents and other people that work for you like you mentioned. So if you living like you making an actual $60 mil its easy to get fukked.

I could also see these guys getting bled "death by a thousand cuts" dry from family and friends constantly having "emergencies". "My daughter needs $10K to cover tuition or she'll get kicked out of her dorm", "We need $50K to bury Aunt Gladys", "Uncle Greg's hip replacement costs $30K and he doesn't have insurance", "Granduncle Lou took out a reverse mortgage before he died without telling anyone so we need $300K to buy the family house back". A lot of players probably don't want to cause friction with family and family friends by seeming heartless since they have the money, but those small requests added up over years are a huge drain.

 

[OperationNumbNutts]

The average college student doesn't know how the calculate the total amount they'll pay in principal and interest for their student loans. It's easy to see how players go broke and the 30-for-30 documentary "Broke" explained it perfectly.

 

[Jalether]

This is the part that somehow is still overlooked. If you make $60 mil a year, you will be lucky to see $25 after federal and state taxes (even in yours dont have em you gotta pay in every state you play games in). Then you got agents and other people that work for you like you mentioned. So if you living like you making an actual $60 mil its easy to get fukked.

Yup exactly.

There was an actress not too long ago who broke down her financials. She said her 14-year acting career to that point has really equated out to about $150k/year after all the taxes and extra people got their's (which probably is a little more in Hollywood/glam industries).

However, agents, lawyers, personal skill trainers, etc. Maybe you need a special doctor. Then extra things like acting coaches and the like are all things a player might additionally spend on. The extra house out in LA that you also pay people to maintenance, the extra house that you buy for your family/friends, the cars, etc.

Then yeah, 1 or two kids/drama, cost of living if you're in an expensive city, etc. and your salary starts to look pretty so much so to the point that one or two bad decisions may jeopardize what you have.

Honestly this is just excusing terrible decision making and trying to rationalise bad choices and lack of accountability on these players part

what they take home after taxes is still more than enough to build generational wealth with

No one can force a financially literate and responsible adult to do any of these things and you can still take care of your family and enjoy your life in
relative moderation

The horror stories of most players going broke that modern players can draw from as cautionary tales and easy access to solid information makes it harder for me to see any justification for them going broke

 

[concise]

depends, for instance I think I read something about the deep bench guys on Golden state qualify for financial assistance from the state because of the cost of living out there.

That had to have been a joke. Rookie minimum is over 900k and was over 800k when they moved to SF.

 

[lib123]

Honestly this is just excusing terrible decision making and trying to rationalise bad choices and lack of accountability on these players part

what they take home after taxes is still more than enough to build generational wealth with

No one can force a financially literate and responsible adult to do any of these things and you can still take care of your family and enjoy your life in
relative moderation

The horror stories of most players going broke that modern players can draw from as cautionary tales and easy access to solid information makes it harder for me to see any justification for them going broke

The root is instant gratification and lack of discipline. Normal dudes and especially athletes can draw from horror stories of baby mama drama everyday but still choose to lay up with strangers unprotected.

 

[FTBS]

Honestly this is just excusing terrible decision making and trying to rationalise bad choices and lack of accountability on these players part

what they take home after taxes is still more than enough to build generational wealth with

No one can force a financially literate and responsible adult to do any of these things and you can still take care of your family and enjoy your life in
relative moderation

The horror stories of most players going broke that modern players can draw from as cautionary tales and easy access to solid information makes it harder for me to see any justification for them going broke

Most 19-22 year olds are not financially literate. Most make bad financial decisions and end up in some kind of debt. Schools don't teach financial literacy. Most parents don't have it. So where are they supposed to get the knowledge from? It's not about excuses or justification, as those things really aren't needed. People are gonna make bad financial decisions regardless of how much finger waging is doled out. It's about being honest about what is going on here. If you don't know how to manage money and have good people around you it doesn't matter how much money you make. If no one ever teaches you how too manage money then for way to many it takes blowing it to learn.

 

[Jalether]

Most 19-22 year olds are not financially literate. Most make bad financial decisions and end up in some kind of debt. Schools don't teach financial literacy. Most parents don't have it. So where are they supposed to get the knowledge from? It's not about excuses or justification, as those things really aren't needed. People are gonna make bad financial decisions regardless of how much finger waging is doled out. It's about being honest about what is going on here. If you don't know how to manage money and have good people around you it doesn't matter how much money you make. If no one ever teaches you how too manage money then for way to many it takes blowing it to learn.

I get what you are saying but you don't need education from school/college to acquire the skills and surround yourself with the right people. it just takes common sense,humility and the right attitude

Good and trustworthy financial consultants and accountant are available to these same knuckle head athletes, all they have to do is reach out "Yo shaq, I need a good financial consultant, got anyone reliable you can recommend" or do their own research

Shyt they can even ask one of the responsible ex players to mentor them.

Also this is the internet age and financial knowledge and resources are abundant. old heads didn't have this luxury but this generation does.

 

[NaijaProdigy Redux]

There should be no excuse but financial literacy is actually very poor in this country. It should be mandatory education at an early age.

Ultimately it doesn’t matter how much you make if you’re cash flow negative.

Taxes, agent / management fees, child support, divorce are just a few expenses a lot of people don’t account for.

Some athletes are really smart about only living on one form of income and saving the other streams.

It should be as simple as putting a large amount of your money in total stock market index funds and diversifying into other more tax-efficient forms of wealth generation but if you were never taught that, how would you know? You don’t even need financial advisors to secure your future.

 

[FTBS]

I get what you are saying but you don't need education from school/college to acquire the skills and surround yourself with the right people. it just takes common sense,humility and the right attitude

Good and trustworthy financial consultants and accountant are available to these same knuckle head athletes, all they have to do is reach out "Yo shaq, I need a good financial consultant, got anyone reliable you can recommend" or do their own research

Shyt they can even ask one of the responsible ex players to mentor them.

Also this is the internet age and financial knowledge and resources are abundant. old heads didn't have this luxury but this generation does.

You know what they say about common sense right? It aint so common. I am not disagreeing with you. My point is that its not realistic to expect that from your average young person let alone one that has been sheltered and sucked off since they were 11. People that make far less money and in turn need more knowledge and discipline arent out here seeking this knowledge or employing the discipline. So why would we think a 22 year old with $200 mil coming their way would do any better? shyt some of these dudes aint even committed to the game like that.

 

[FTBS]

Also we cant act like all financial advisors are on the up and up. KG got got. I believe Duncan did too. Some dudes get fukked up investing in shyt, trying to do it the right way. Its not always as simple as "be smarter and dont skeet in thots".

 

[beenz]

The amount they are making nowadays, even average players, there's zero excuse not to have investment potfolios and savings
They make too much money and have access to the best financial advice to fukk it all away.

Is there ever a scenario where you would feel pity for any of these nba players going broke after retirement. I would like to hear it

this combined with the mandatory pension contribution they have to make.

if u have ten years or more of service in the NBA and u wait til age 62 to start withdrawing, you are making over 200K annually just off the pension. the minimum pension is 56K annually. and u have to have 3 years service to get that. those numbers are crazy especially the smaller one. u could have 3 years of NBA service and draw $56K for life

 

[concise]

You know what they say about common sense right? It aint so common. I am not disagreeing with you. My point is that its not realistic to expect that from your average young person let alone one that has been sheltered and sucked off since they were 11. People that make far less money and in turn need more knowledge and discipline arent out here seeking this knowledge or employing the discipline. So why would we think a 22 year old with $200 mil coming their way would do any better? shyt some of these dudes aint even committed to the game like that.

We have years and years of knowledge that lotto winners in the past tend to lose it all and they still keep doing it.

The same will happen to most of these dudes also. The percentages may vary from time to time, but most will still go broke anyway. It's just how it is.

 

[Rekkapryde]

There should be no excuse but financial literacy is actually very poor in this country. It should be mandatory education at an early age.

Ultimately it doesn’t matter how much you make if you’re cash flow negative.

Taxes, agent / management fees, child support, divorce are just a few expenses a lot of people don’t account for.

Some athletes are really smart about only living on one form of income and saving the other streams.

It should be as simple as putting a large amount of your money in total stock market index funds and diversifying into other more tax-efficient forms of wealth generation but if you were never taught that, how would you know? You don’t even need financial advisors to secure your future.

Financial literacy for the masses isn't taught for a reason as I'm sure you know.

But yeah, there is no excuse with all the free resources available now.

 

[Jalether]

this combined with the mandatory pension contribution they have to make.

if u have ten years or more of service in the NBA and u wait til age 62 to start withdrawing, you are making over 200K annually just off the pension. the minimum pension is 56K annually. and u have to have 3 years service to get that. those numbers are crazy especially the smaller one. u could have 3 years of NBA service and draw $56K for life

Incredible. They really have no excuse. most people working in corporate world would kill to earn 200k annually as salary