Did you know that MLB players file bankruptcy 4 times more often than the national average?
The average MLB player will make an estimated $4.25 million this season, up from $3.65 million just two years ago. And the perks of playing in the show don’t end there. MLB players will also get $100.50 a day in meal money while on the road in 2015.
If you make a huge amount of money, you don’t need a financial plan, right? Once you become rich, you can buy what you want without worrying about the future. Just get your hands on a big pile of cash and you’re set for life. The money will take care of itself.
Unfortunately, many players hold that viewpoint, even though they wouldn’t put it that bluntly.
So, why are there so many players struggling to live paycheck to paycheck after baseball?
The answer is quite simple: It’s not a matter of what you make but what you keep.
Thinking about retirement is often difficult. It is hard to be concerned about what will happen 20 to 30 years in the future, while you are focused on performing at the highest level on the field today.
Especially, the week of Opening Day.
However, it’s actually the best time because you still have the ability to do something about it.
The overarching goal for most players is to have enough money at the end of their career that allows them to transition into the next phase of life without any change in lifestyle.
This allows you to do what you want to do, rather than what you have to do.
Those who save now and safe often can be set for life.
As a general rule, for every dollar of annual spending, you need 20 – 25 times that amount in income-producing investments. If your goal is to have a million-dollar lifestyle, you need $20 – $25 million to secure this lifestyle without having to spend your principal when you retire from baseball.
So what’s your number?
Before your first paycheck hits your account next week you should know how much of your salary you will have saved at the end of the year. A good benchmark for savings is 40 – 45 % of your salary. How much were you able to save last season?
If you would like help in each of the following contact us today.
- Determine the amount of money you need to save to maintain your current lifestyle without having to work in retirement.
- Setup an easy to use automated savings system that will ensure your goals are reached
You would have never left your career up to chance. You had a dream. You set goals. You developed a plan to accomplish those goals. And most importantly, You Executed.
Contact us to schedule a FREE 30 minute consultation.