We have all heard the statistics about how many athletes go broke after retirement and I always attribute it to the idea that the money you make during your years as an athlete now becomes the standard upon which you live your life by. In other words, athletes who earn $10m in their first year falsely assume that they will make $10m per year for the rest of their lives. This is never the case. When the salary dries up their lifestyle often times goes with it (read Vince Young). This is not only embarrassing it is a huge let down to your community and your heirs.
Had you made better financial moves with the capital you had you could have set yourself up to make more money than you ever dreamed from your investments. Most wealthy people are business owners and investors, not athletes. You have the opportunity with the higher income to leverage it into some ventures the can take you from rich (temporary) to wealth (eternal). Like Chris Rock said, you can be rich and lose it over the summer with a bad drug habit, but you cant get rid of wealth.
A better move is to use that capital to create streams of income that will allow you to live the rest of your life well above the average person, anyway. The average person makes roughly $50,000 per year. I can show you ways to turn your $10m into income in perpetuity that would put you into the realm of $200,000 and above, forever, passively (meaning you make money when you sleep).
An example is that you can use 100k to purchase a dry cleaners for $500,000 but that nets 100k per year. This $100,000 will be paid back to you likely within the first year and then you will have $100,000 in passive income for the rest of your life. Additionally, you can now replace the staff with your friends and family and provide jobs for other people in your community. You can also use your money to purchase other business that are already established and have cashflow. This is a much better strategy than giving your homie 200k to open up a burger stand that has no brand. Acquisitions are a lot safer and more sustainable than a brand new brand and until you are playing with the houses money its better to go with the safe bet. The house money is the cashflow you earn from your investment, after you have been paid back your $100,000. When you start using house money to buy even more investments that is the true level up.
Another strategy is to purchase multifamily real estate developments of 16 units or more. The numbers work out that each unit should yield you $200 in passive income per month, so do the math. If you buy 100 units for $10m (estimated math) you could passively generate $200,000 per month, or $2m per year, in passive income. Keep in mind that you don’t have to pay the full $10m. You would put up $1m to get the loan and then have someone (your friends and family) manage your investment. That is a 20% cash on cash return that you will never get from the bank. Additionally, your friends could even get so good that they then start their own property management company and clean up neighborhoods.
The last of many ideas is to invest in tech companies. This is what Kobe is doing as well as other lesser known guys. You can invest 500k into the next big thing and take equity in what they create and then take public. You could turn your $500,000 into $5m or better you could luck up like 50 Cent and Dre and convert your shares into billions. The opportunity are endless but you have to be in the game.
Most athletes entertainers and high income professionals (doctors, lawyers) need to spend their time focusing on their craft so they can continue to be a high income professional. But you need to have a team of people working on your behalf. This is what we do. We allow you to be more handoff but still see a larger than normal return on your money with less risk. This investment club is $1,000 per month but your contribution gets merged with other likeminded individuals in order to execute on the ideas listed above.
The end goal is to live out of the cashflow not the principal. You need to go from living 100 percent off your effort to living 100 percent off of your money and you can’t do that by living a lifestyle out of your working income. That income is the seed, the trees are not only for you but for generations to come because the leaves are always being newly generated. You only get so many seeds but if you plan them correctly you will leave a true financial legacy for years to come.
If you are interested in working with our team of investment experts please email us at firstname.lastname@example.org. This is a movement.