Why do so many NFL players go bankrupt?

[Schneed10]

Originally Posted by Giantone

One would hope so but you keep forgeting the fact that some (not all)did the right thing,they went to professionals ,they sought advice,they diversified their holdings and still lost it and you call them dumb.Just read the paper and look at how Goldman-Sachs is behaving and you want to go to Wall St. and smack them all in the mouth.

How could somebody lose all their money by diversifying their holdings? That's just not possible.

Even in the stock market crash that just occurred, the market went down 40-50%. So dudes would have lost half their money, not all of it.

The only way they could have lost it all through investing was to put too many eggs in one basket, or otherwise take unnecessary risks with their money. Such as investing in a business venture, handing your money over to a Madoff type, etc. Which comes back to giving too much money to the wrong people.

I get it. Some of these athletes were victims of predatory attempts to suck money out of them under the premise that returns would be great. But once you're rich, why even bother investing aggressively from there? Why do multimillionaires need to hit it big on other business opportunities?

Greed. And greed is foolish.