Ex Raptor Eric Williams is homeless - Page 2
Old 04-22-2014, 03:04 PM   #21 (permalink)
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for most players though, that wouldn't be much. After 10 year in the league at 3m/yr (accounting for rookie pay scale and low end salaries at the end of their career), average take 5% per year after tax and put it in a retirement fund, if you play it safe (no risky investments), you end up with what, 800k-1M.

You can't live from 30 to 80 on that kind of money, EVEN if you were able to drastically reduce your lifestyle.

The main problem is that most nba players are far less rich then they think they are, because they need to live a really long time on whatever's left after they retire. With most having no skill whatsoever, it's a lot easier to justify NBA's policy to push the draft age higher. Every extra year in college will make a huge difference to these guys ability to cope with life post-nba. With the exception of a very few, most players will also have to dramatically lower the level of luxury in their lives, which is just as hard if not harder than finding something to do that earns you money.
$1M is the equivalent of 20 years salary at 50k after taxes. That's with a home fully owned (no mortgage), cars owned. Heck, make it 10% into an annuity if you like that math better.

Hey, here's an idea if you want to live a life of luxury, and have half a brain. Take that 3M average annual salary (1.5M after tax, worst case), and assume an annual "spending" income of 500k. That's a crazy amount of money per year, even with a particularly luxurious lifestyle (consider that a large amount of expenses are paid by the team during the year, including travel, road accommodations, medical stuff and a lot of meals). The rest (1M) into an annuity gives you 10M to filter out over the course of those 50 post-retirement years - 200k per year (plus interest). Still accommodates a fairly luxurious lifestyle. Heck, at a modest 2% per annum return on a savings account (not hard to get when your capital is that huge), you could have 200k annually coming out indefinitely.
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Old 04-22-2014, 03:14 PM   #22 (permalink)
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The NBA has a pension.
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Old 04-22-2014, 03:20 PM   #23 (permalink)
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A better idea than any investment or any course is simply not fathering two children out of wedlock and cheating on a high-maintenance wife leading to what I assume was a very costly divorce.

Avoid that situation if you want to keep your money.

I would wager he had investments at some point and probably still does.

Last edited by bjjs; 04-22-2014 at 03:26 PM.
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Old 04-22-2014, 03:22 PM   #24 (permalink)
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The NBA has a pension.
Yeah, but it's pretty weak. A lot of these guys end up taking on bad debt trying to maintain their lifestyle, then the meager pension is nowhere near enough to compensate. The NBA has much improved their money management programs lately though, so hopefully in future these sorts of things will be much reduced. Ideally it would be best if they made their pension program a much bigger portion of player income, but that seems unlikely.
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Old 04-22-2014, 03:22 PM   #25 (permalink)
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It's better to live like a prince for the rest of your life than a king for a day.
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Old 04-22-2014, 03:27 PM   #26 (permalink)
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Sounds like something an old prince would say.
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Old 04-22-2014, 04:53 PM   #27 (permalink)
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Iverson
Shawn Kemp
Eric Williams
the list will have no end.
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Old 04-22-2014, 07:07 PM   #28 (permalink)
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He played 62 games here. What about Denver, Boston, where he played the majority of his career?

--------

He's just another example of a bigger picture of NBA players going broke soon after their career ends.

He made $40 million in his NBA career:
Eric Williams NBA & ABA Stats | Basketball-Reference.com

There needs to be a better fiscal management training session for new players- they get too much money too young, and don't realize that it has to last them for the rest of their lives.
They go through extensive rookie training. It's up to them to listen and apply. I understand he played here a short time. But it's a chance to make a difference in a family members life. I'm not talkin about a hand out. I'm saying a job with the conversion team tearing out and building seats. Something to help out. I think it would be great to show up Boston and Denver.
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Old 04-22-2014, 10:31 PM   #29 (permalink)
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How about his wife and kid then.
Obviously you feel for them, since he owes child support money. Yet again though, he is supposed to be a grown man and just wasted all his money like a kid at a candy shop. He should have had the brains to put his family first instead of buying useless expensive material items.
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Old 04-22-2014, 11:28 PM   #30 (permalink)
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Yeah, always wonder about guys who switch the ownership of their property to their mom, aunts, uncles, etc move in with one of them and claim broke to avoid paying child support to someone who was only a gold-digger to begin with..
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Old 04-22-2014, 11:38 PM   #31 (permalink)
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Doesn't he have C.R.E.A.M. tattooed across his arm?
He pissed his money away... I have no sympathy for that.
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Old 04-22-2014, 11:42 PM   #32 (permalink)
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Chapter 1: You're a millionaire athlete and the girls at the club want your babies
Chapter 2: Condoms and other birth control methods
Chapter 3: Investment basics
Chapter 4: Budgeting for posses and hanger-ons
Chapter 5: Retirements savings
these are all common sense... but this is what happens when a person does not have any control of himself while he lets his surroundings control him
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Old 04-22-2014, 11:48 PM   #33 (permalink)
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$1M is the equivalent of 20 years salary at 50k after taxes. That's with a home fully owned (no mortgage), cars owned. Heck, make it 10% into an annuity if you like that math better.

Hey, here's an idea if you want to live a life of luxury, and have half a brain. Take that 3M average annual salary (1.5M after tax, worst case), and assume an annual "spending" income of 500k. That's a crazy amount of money per year, even with a particularly luxurious lifestyle (consider that a large amount of expenses are paid by the team during the year, including travel, road accommodations, medical stuff and a lot of meals). The rest (1M) into an annuity gives you 10M to filter out over the course of those 50 post-retirement years - 200k per year (plus interest). Still accommodates a fairly luxurious lifestyle. Heck, at a modest 2% per annum return on a savings account (not hard to get when your capital is that huge), you could have 200k annually coming out indefinitely.
ok, that's a different discussion. 500k a year may be huge to you and me, but it's far from luxury living. Also, remember that most of these guys come from really poor environment and have a lot of people to care for, so a lot of money needs to go left and right. Don't get me wrong, not saying that you're wrong - a smart person would do that. But it must be really hard to be thrifty considering their circumstances. Especially when you are a young guy with minimal education of any kind.

If you're used to spending 1m a year, stepping down to 200k per year is not an easy adjustment (I would think ...). It means that you probably won't be able to afford that ferrari anymore, and that 5M house needs to go and you have to "settle" for a 2M one or worse.

Basically, it goes back to what I said - they think they are far richer than they are. If they are really thrifty during their playing years and are able to trim their lifestyle severely after they retire, they could leave a very comfortable life by the average guy's standards. But nowhere near to the lifestyle most NBA players actually have.

And btw, 2% per year in net returns (after inflation) is not necessarily easy to achieve today without taking at least some risk. You have to account for inflation, because in 50 years those 200k will be worth peanuts otherwise. So you'd need to generate at least 4% in risk free investments, which is probably impossible. So 2% in real returns is not modest, not if you're avoiding risk as I mentioned in my post. If you take on risk, it's easier, but comes with all sorts of strings (have to get right advisor basically) and it's no longer guaranteed.
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Old 04-22-2014, 11:49 PM   #34 (permalink)
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The NBA has a pension.
i sure hope it's higher than the one you get from the government
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Old 04-23-2014, 02:11 AM   #35 (permalink)
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The amount of privilege coming off this thread is unreal.

It's ridiculous to hear you (mostly white and middle class, I'll bet) dudes talking about what these guys should have done with their money. If you grew up horrifically poor, like most athletes, would you have any idea what the fuck a budget was? Would you somehow learn the intricacies of retirement savings plans? You suddenly get checks for hundreds of thousands of dollars. You're 19. You're going to save that for a rainy day after you and your family have lived destitute?

No. You'd blow through it because you'd have absolutely zero idea what to do with your money because you've never had it. You'd likely give it to family and those who have stuck by you. And you'd get taken advantage of every step of the way by people from both the old 'hood and the new 'hood - agents, GMs, etc.

A huge chunk of their salaries are gone from agent fees and taxes anyway. The guy making $3million is actually making less than half that.

But feel free to condescend and tell us how you would have done it better.
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Old 04-23-2014, 05:16 AM   #36 (permalink)
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The amount of privilege coming off this thread is unreal.

It's ridiculous to hear you (mostly white and middle class, I'll bet) dudes talking about what these guys should have done with their money. If you grew up horrifically poor, like most athletes, would you have any idea what the fuck a budget was? Would you somehow learn the intricacies of retirement savings plans? You suddenly get checks for hundreds of thousands of dollars. You're 19. You're going to save that for a rainy day after you and your family have lived destitute?

No. You'd blow through it because you'd have absolutely zero idea what to do with your money because you've never had it. You'd likely give it to family and those who have stuck by you. And you'd get taken advantage of every step of the way by people from both the old 'hood and the new 'hood - agents, GMs, etc.

A huge chunk of their salaries are gone from agent fees and taxes anyway. The guy making $3million is actually making less than half that.

But feel free to condescend and tell us how you would have done it better.
Yeah, I accommodated for taxes in my discussion. And my point was that the agents should know to set these things up for their clients - earn some of that agent fee.
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Old 04-23-2014, 06:18 AM   #37 (permalink)
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The amount of privilege coming off this thread is unreal.

It's ridiculous to hear you (mostly white and middle class, I'll bet) dudes talking about what these guys should have done with their money. If you grew up horrifically poor, like most athletes, would you have any idea what the fuck a budget was? Would you somehow learn the intricacies of retirement savings plans? You suddenly get checks for hundreds of thousands of dollars. You're 19. You're going to save that for a rainy day after you and your family have lived destitute?

No. You'd blow through it because you'd have absolutely zero idea what to do with your money because you've never had it. You'd likely give it to family and those who have stuck by you. And you'd get taken advantage of every step of the way by people from both the old 'hood and the new 'hood - agents, GMs, etc.

A huge chunk of their salaries are gone from agent fees and taxes anyway. The guy making $3million is actually making less than half that.

But feel free to condescend and tell us how you would have done it better.
So you're basically saying these guys are automatically poor and from "the hood", because why, because they're black? And you're calling us biased????

For every Iverson there's an educated responsible dude like f.e. Grant Hill.

But apparently you know exactly how and in what conditions Eric Williams grew up in.......
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Old 04-23-2014, 11:29 AM   #38 (permalink)
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the espn 30 for 30 on this was pretty good.

it did support a lot of what is being said on here, players blowing it on ridiculous things, not having a clue about investments and doing crazy investments as well.

it did also however open my eyes a bit on how difficult it is for them. And not just the coming from a poor background argument, which is a fair point. Annoyingly, and somewhat poorly on my part, i can't remember the details, but it was things like the scheduling of when they got their money, not knowing what was coming in when and spending too much between those times, giving money to family member, agents fees, people doing stuff with their money without checking with them first, hangers on, the darkside of previously reliable friends/family taking advantage.

of course a lot of this stuff is at least semi self-inflicted and with better education and what danh and others have said they could do, these things could be avoided.

i just remember it not being as simple as "put some of that money aside" and live off it later. even some sensible, more middle-class athletes had some horrific non self-inflicted stories.
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Old 04-23-2014, 01:37 PM   #39 (permalink)
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I think I've read a very large number of lottery winners end up really badly too.
If true, it goes to show that background and education have little to do with it -suddenly making a ton of money is very difficult to handle. Just think of all the examples of rich offsprings who burn through the family fortune in a decade once they inherit it.

I truly doubt better education would help, maybe would save a few, but the sad truth is most will disregard any advise, especially when confronted with counter-advises from close "friends" and relatives.

How you handle money is a lot more about self-control and self-respect issues than education or race. It's VERY easy to lose your mind in that scenario, especially if you feel the need to "prove" your wealth, which most people do (most = rich or poor).

Education won't help much because, for example, most smokers are fully aware of the dangers, and still keep smoking (speaking from experience). It's just that a risk that seems far away is very difficult to counter with a temptation that is right at hand.
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Old 04-23-2014, 02:46 PM   #40 (permalink)
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One word:

Dumb
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