Shaq on Annuities

Aug 19, 2015

  1. smokin goose
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    smokin goose Guru

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    I was watching NBA Open Court on YouTube last night. They were talking about how they deal with all the money they get at a young age and how 70% of professional athletes go broke.

    Shaq said, "I've got one word for these guys ... annuity. Put your money in it and it keeps paying you the rest of your life."

    Nobody else commented and it was left at that. I just thought it was interesting and thought I'd share. I just wonder how many of them are buying annuities.
     
  2. somarco
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    somarco That Medicare Expert Guy

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    somarco, Aug 19, 2015
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  3. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    DHK, Aug 19, 2015
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  4. scagnt83
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    scagnt83 Worldwide Expert of Everything

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    The ones with decent financial planners buy annuities. Preferably long surrender period annuities. They also buy high limit DI & Life.

    The problem is that there are lots of sharks who are there with grand schemes for these young and uneducated guys... an old favorite of those sharks was to finance the 5 year salary for the guy in a lump sum, give him half in cash and invest the other half. The "thinking" was that the investment interest would more than pay for the loan interest... the financiers , advisors, and the poor guys agent were the ones who benefited the most from that scheme.
     
    scagnt83, Aug 19, 2015
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  5. somarco
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    somarco That Medicare Expert Guy

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    That sounds like some of the scams run by guys selling financed life insurance for college students.

    Buy WL today and low rates. Finance 100% of premium until you graduate. Borrow CV to pay off loan.

    Fidelity Union, College Life, Aquila, MONY ............ quite a few carriers doing that in the 60's.
     
    somarco, Aug 19, 2015
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  6. KRobby
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    Sounds like a good person to bring for a ride along.
     
    KRobby, Aug 19, 2015
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  7. Justin Bilyj
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    Justin Bilyj Guru

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    Depends on the car...
     
  8. Stephen
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    Stephen Guru

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    I remember seeing that episode. For some reason after Shaq said that, there was a really long and awkward silence before they moved on. I wonder if Shaq was trying to get on the payroll somewhere.
     
    Stephen, Aug 19, 2015
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  9. smokin goose
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    smokin goose Guru

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    Yep. I noticed that. My guess was they didn't agree or they didn't know what an annuity was.
     
  10. Rearden
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    Rearden Guru

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    At first blush, what these guys like most Americans need is a financial product that will severely restrict their urge to blow it all in a matter of years.
     
    Rearden, Aug 19, 2015
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