Why do so many NFL players go bankrupt?

[tryfuhl]

it was just toasters.. if you're referring to the chris rock joke

[diehardskin2982]

most atheletes don't know where their money is, let alone know what its doing because they don't understand money. The investment advisors they use are hired by the agents or are the agents themselves. So it is already a conflict of interest. They look to trust "exesperts" to make their money grow but end up being sold a bad business deal. Losing it all from embezzlement, and end up in tax trouble because the people they trust as accountants don't file their stuff correctly.

Did you know that there are companies that make it their business to sell business deals to atheletes and lottory winners. There is a lot of corruption and theft that occurs to people who come into fast money because they trust the wrong people.
I used to be in the banking industry and there were some prominent players who kept hundreds of thousands of dollars in checking accounts. The bank is making millions off of them because noone would tell them that it would make more money in interest baring account.

Ignorance is very costly in that world.

[tryfuhl]

Originally Posted by diehardskin2982

most atheletes don't know where their money is, let alone know what its doing because they don't understand money. The investment advisors they use are hired by the agents or are the agents themselves. So it is already a conflict of interest. They look to trust "exesperts" to make their money grow but end up being sold a bad business deal. Losing it all from embezzlement, and end up in tax trouble because the people they trust as accountants don't file their stuff correctly.

Did you know that there are companies that make it their business to sell business deals to atheletes and lottory winners. There is a lot of corruption and theft that occurs to people who come into fast money because they trust the wrong people.
I used to be in the banking industry and there were some prominent players who kept hundreds of thousands of dollars in checking accounts. The bank is making millions off of them because noone would tell them that it would make more money in interest baring account.

Ignorance is very costly in that world.

firstdown hijacking accounts itt

[DIE-NASTY]

Originally Posted by GMScud

There are some guys on that top 25 list that I had no idea pissed away their riches-
Deuce McAllister
Bjorn Borg
Scottie Pippen
Muhsin Muhammed

Antoine Walker is broke after making well over 100 M in his career.

[diehardskin2982]

^ Lol sorry tryfuhl, juggling a few things at work and I’m not the best speller.

[tryfuhl]

I hadn't heard about Sheryl Swoopes.. shows it's not just the guys.

[Mc2guy]

The broader point I am trying to make is that your characterization of the broad populace as "not smart" is misguided and not a small amount arrogant. Financial management takes training, aptitude, patience, and foresight. To expect an average Joe off the street with no background to know how to manage large sums of money is a fool's errand, and it has nothing to do with intelligence. Just because I am trained in economics, finance and risk management, doesn't make me smart, it makes me educated...big difference.

Intelligence, by any definition, covers a broad swath of topical areas, with finance being but one. Einstein could not balance a checkbook, was he "dumb?" The fact that the vast majority of Americans are not Millionaires should be evidence enough that rich and intelligent are mutually exclusive.

[NYCskinfan82]

Give me their money i will show you how to keep it.

[SirClintonPortis]

Intelligence is not a measure of "knowledge". So, can people stop using examples of athletes not "knowing" what to do with money as a lack of "intelligence" when it is in fact a case of being ignorant. They may be "slower" in figuring things out and thus are less "intelligent" in that sense, but simply not knowing how to balance a budget is a problem of ignorance.

[53Fan]

I've always based intelligence on the level of one's ability to learn, not how much you know. Everyone knows more about something then someone else. If only from education in that particular area or experience.

[Giantone]

Originally Posted by Schneed10

Sure, but nothing that results in such drastic consequences.

The thing that makes these athletes so dumb is the consequence of their actions. They have the chance to set themselves up for life, to have the financial freedom to work in just about any field they want without worrying about money like the rest of us. But they give that all away with careless handling of their assets. It's a huge mistake.

Now, is it the worst thing in the world to return to a life where you need to get a job to support yourself? No, that's the life I'm living now, and I'm happy.

But think about where they could be. That's what's so dumb.

No you're wrong.If you invested $1000 and I play football and invest 1,000,000 in the same thing and it goes bad ...you think I'm dumber then you or did I just have more money to invest?
Point, if I had 5 million and I go to a finacial counselor and he hooks me up with Emron ,AIG and Benie Madoff.........5 years ago ....I'm smart ,but after last 2 years I'm dumb according to you.

[53Fan]

Originally Posted by Giantone

No you're wrong.If you invested $1000 and I play football and invest 1,000,000 in the same thing and it goes bad ...you think I'm dumber then you or did I just have more money to invest?
Point, if I had 5 million and I go to a finacial counselor and he hooks me up with Emron ,AIG and Benie Madoff.........5 years ago ....I'm smart ,but after last 2 years I'm dumb according to you.

You're a Giants fan Giantone. You'll always be dumb to us.

[Schneed10]

Originally Posted by Giantone

No you're wrong.If you invested $1000 and I play football and invest 1,000,000 in the same thing and it goes bad ...you think I'm dumber then you or did I just have more money to invest?
Point, if I had 5 million and I go to a finacial counselor and he hooks me up with Emron ,AIG and Benie Madoff.........5 years ago ....I'm smart ,but after last 2 years I'm dumb according to you.

If you put 100% of your money in any stock at any time, whether Apple, Enron, AIG, or Coca Cola, you're dumb.

What if that one company goes out of business?

[Schneed10]

Originally Posted by SirClintonPortis

Intelligence is not a measure of "knowledge". So, can people stop using examples of athletes not "knowing" what to do with money as a lack of "intelligence" when it is in fact a case of being ignorant. They may be "slower" in figuring things out and thus are less "intelligent" in that sense, but simply not knowing how to balance a budget is a problem of ignorance.

This is a great point, ignorant is a good word.

Despite my finance background, I'm even ignorant of the best way to manage $100M. Difference is, I'm smart enough to know that I need to learn more about it before I go giving any money to people.

[Kalisto2010]

Here's the problem with most pro athletes. Once they retire, they're to spoiled to re-adjust their lifestyles. They continue to live as if they were still being paid millions of dollars per year.