
60-80% of NBA and NFL players go bankrupt or experience financial stress within two years of retirement. Why? Aside from all of the obvious reasons like fancy cars, bad investments, child support payments, and gold chains, could there be a less-obvious underlying concept that explains them all? Yes indeed.
So many athletes go bankrupt because of the extreme stability they inherit overnight. Many of these players come from poor to middle-class backgrounds, and were forced to live reasonably their whole lives. But when they got that first paycheck, their previous experiences instantly became obsolete. Not only do they now have a ridiculous amount of money, but they are getting a lot more of it, too. Rather than carefully allocate their funds, most players will throw it around as if they’re multi-millionaires. Clearly, even a multi-millionaire can go bankrupt rather easily.
How can so many throw away such a golden opportunity for lifelong wealth? Read More