And these guys are college”graduates‼️”𗀔
Are there lessons in the following story for average Americans? You betcha there are and they are not limited to retirement planning either.
Not understanding budgets, a lack of planning and education and living for the moment are indicative of our country as well. That’s why many Americans see no issue with our deficit spending and growing debt and would readily welcome more social programs without regard to how they will be paid for.
While the US can’t run out of money, there certainly are consequences to printing money, growing interest expenses, the need to raise taxes and limited options to deal with the next fiscal crisis.
Pro athletes’ money issues could be a microcosm of the problems experienced by the broader population.
A former NFL player reminds us that the retirement crisis doesn’t just affect everyday citizens, but also athletes, many of whom are no longer wealthy. CNBC reports that Mario Henry, a former New England patriot, “was out of football, and money, by age 28.” Now Henry is drawing attention to the retirement crisis, citing a Sports Illustrated report that approximately 80 percent of retired National Football League players go broke in their first three years out of the league.
“The average working person asks, ‘How is that possible?’ That’s a fair question, because the average NFL player’s salary is close to $2 million per year. The median income is $750,000.” But while there are a variety of reasons, “at the top of the list is a lack of financial planning and education.”
Not understanding budgets, receiving poor advice from “agenda-driven agents who weren’t properly screened,” being unwise enough to sign powers of attorney for agents and thus losing control of their money–the reasons young players end up broke are many. And they tend to stay broke, since they haven’t prepared for a day when the millions might run out. But that’s only a part of the big picture, says Henry, who says athletes’ financial woes point to a broader “retirement problem, largely due to inadequate knowledge, poor advice and lack of preparation.”
In fact, athletes’ money issues could be a microcosm of the problems experienced by the broader population. With 88 percent of Americans afraid of a retirement crisis, and 60 percent behind schedule in what they need for retirement savings, according to surveys from the National Institute on Retirement Security, Henry says that “many Americans are not planning for the fourth quarter of their lives for those worst-case scenarios, and some who believe they are prepared may have a false sense of security.”
When it comes to individuals there is one simple strategy. Save first, set your standard of living after saving and avoid credit card debt.