PASSIVE INCOME > EXPENSES

The easiest job in the planet is to “make sure your money is there when you retire.” That is what some financial advisors are doing with these athletes; the put their money in bonds and chill. This works if you have $100M and can get 1% off that. But what if you have $10M and need to generate $400K each year to cover all your expenses, family expenses etc? That $10M only kicking off 2%, then there’s a fee of 1%, then you pay taxes. God forbid you actually want to grow it!

Contrary to popular belies, THIS is how most athletes go broke. They fail to get their PASSIVE INCOME TO EXCEED THEIR EXPENSES in retirement, so they spend the principal. Everyone talks about the expenses, but no one talks about the lack of passive income they generate. Everyone can’t have the same strategy of bonds, and everyone can’t live off 100K when you have parents, kids, cousins, alimony, child support etc. you are taking care of. Especially when you “have” $10M in your account and you’re a 32 year old celebrity.
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Here is how we solve it: WHAT’S YOUR NUMER? What % return do you need each year on your savings to live off it and pay your expenses? 2%, 5%, 10%, 20%?? I’m tired of people telling athletes they need to live off $100k/year when they have like $20mil, that’s not gonna happen. I see all my non-athletes getting 10-20% returns each year off that same $20M. The athlete gets $100K/ year in passive income the non-athlete gets $1-2M per year in passive income because they are in stocks, real estate, private equity and venture capital.
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“It’s too risky” is the main excuse. This seems to only be too risky for black athletes. My other clients have a ton of stocks, real estate, PE and VC investments. What’s more risky is to know that your $10M will go to zero in a few years because you aren’t getting enough passive income. Also “too risky” is code word for they just don’t do it. It’s your job to find someone that does. It’s your money! I want everyone to take ownership of their own finances, make money, live comfortably and have generational wealth. Hold people accountable for returns and align yourself with coaches in every asset class you invest in!

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