You can go broke no matter how rich you are. Kyrie Irving of the Boston Celtics seems to
know that which is why he drives a $29,000 Jeep Wrangler even though he’ll make
over $20 million this year (per GoCompare and CNBC). He may have heard that 60% of NBA players are
broke within 5 years of retirement and it’s similar for players of other sports
(per a 2009 Sports Illustrated story).
How does it happen? The easy answer is that they spend too much. Their situation is no different than for any
of us; only the numbers vary. Figure out
how much you have, how much you make and how much you’ll need when you retire
(whatever your retirement age is) and then you can determine how much you are
able to spend. Spend more than that and
you’ll go broke. Spend less and you’ll probably be okay. Whether you have $100,000 in savings or $10
million, the math is the same. So follow
Kyrie Irving’s example and remember that the future is expensive and it’s best
to plan ahead.
Larry Pike, CFA
Client Priority Financial Advisors LLCwww.clientpriority.com
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