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Willie Reed - Impressive Heat Debut


philliken

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No need to be surprised. For many of these kids having the money they are getting has little meaning other than the stuff what they can buy with it. It is sad, really. This is not limited to basketball players, it affects many others as well.

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3 hours ago, TheChosenOne said:

My wife is a CFP and a life long Billiken fan, I am sure she would be willing to help him out and as a CFP would have a fiduciary responsibility to act in his best interests (probably a key thing for those guys to be aware of when receiving financial guidance).

It has been an odd path, but it seems like Willie is making a name for himself in the NBA. 

Send him over my way in Clayton proper and we will get him taken care of like he should... :)

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Bentley.  Idiocy.

Unbelievably there is a large portion of athletes who still believe they can take care of their own money.  I've actually heard athletes say that expensive cars are investments as they lose little value over time and they can't be touched in child support cases.

Reed will make lots of money.  Hopefully he signs a 3 year deal over 10 mil per and signs with a team where he can contribute and win.

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13 hours ago, Old guy said:

That is not necessarily a good thing. He makes $1.6 M per year, an unknown part of which goes deferred or is deposited in long term accounts. His Federal tax rate for 2016 is 39.6% of whatever his taxable income is (over 496,000 filing joint return with his wife, assuming he is married). The  bite goes deeper if he is not married. Florida has no State tax, but has a hefty sales tax among other things. So let's say that about 45% of his taxable income goes into taxes one way or the other. That leaves him with $880,000 cash (minus whatever is deferred or goes into long term accounts). The Bentleys start around $230,000 new, and cost a hefty sum to service, pay property tax, and insurance. Surely he can afford the Bently with no sweat, the problem is that this is not the only large expense he will be facing. Other major expenses come to mind, there is proper housing for someone making what he does, proper clothing (for himself and his wife and children), proper schools for the kids, and again proper entertainment for his level and station in life. I hope you can see Willie can go through whatever is left after taxes without much problem. That is where the problems start. This may sound ridiculous, but what is wrong with a Porsche, a Mercedes, or even an Escalade SUV?

If you start the rapid burn of cash early on in your career it tends to continue and grow with time... I hope among his many expenses he includes a honest and rational financial manager, these are hard to find.

The NBA. Where Financial Disasters Happen.

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The good news for Willie is that the longer he sticks around, the more he'll improve his pension situation:

Quote

NBA players have one of the most generous pension plans in all of professional sports. They are vested into their pension plans after playing at least three seasons in the league. The minimum benefit for a player that retires at the age of 62 is $56,988 per year - not a bad retirement for a three-year career. The maximum benefit for any player is $195,000, and it takes 11 years of NBA service to qualify for this benefit.

But that's not all! NBA players are also eligible to participate in a league-sponsored 401(k). Do you think your 401(k) is good with a 50% matching policy? The NBA matches player's contributions up to 140%.

 

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5 minutes ago, Pistol said:

He might be leasing it, which would be the smarter way to go.

Good point.  The problem some may be having is that we have watched many athletes piss their money away with no plan for the future.  Willie has worked hard and I for one want him to be secure so making poor financial choices is worrisome in general.

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He lives in Miami, the place is crawling with competent, money hungry accountants who know that in order for them to get rich, they need their clients to get rich. 

The NBA has one of the better player unions in pro sports, complete with mandatory financial lessons for rookies. And while tragedies still happen, there have been enough horror stories over the past several years for kids to get wise.

If Willie takes a fourth of his income, and invests it, on top of his pension, he will be financially secure for life, barring some absolutely catastrophic choices.

Let the kid buy a Bentley. Ballers ball, go get it Willie. (Also, please come back and hang around the 'Fetz so other 5 Star prospects will want to come here. Thanks)  

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5 minutes ago, prebilliken said:

 

Let the kid buy a Bentley. Ballers ball, go get it Willie. (Also, please come back and hang around the 'Fetz so other 5 Star prospects will want to come here. Thanks)  

preach

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1 hour ago, Box and Won said:

Bentley = bad move.  At least Willie doesn't pay state income tax in Florida.

One Bentley = not a bad move. Multiple Bentleys = bad move. 

The guy is going to make $5+ million in the next year. 

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Any chance Willie starts buying up some Applebee's franchises? At 26 years old and coming off of his best season as a pro coinciding with the NBA's deal with ESPN and TNT just a year in, he could make himself a lot of money.

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2 hours ago, RiseAndGrind said:

One Bentley = not a bad move. Multiple Bentleys = bad move. 

The guy is going to make $5+ million in the next year. 

If he doesn't have some kind of freak injury before he signs his contract.  It might have been smart to hold off on the Bentley until he had the money locked up.

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Can he afford the Bentley? Yes.  The concern is that the guy who goes out and spends his money on a Bentley is likely not going to make smart decisions with the rest of his money.  These guys don't go get another job when their career is over.  The money he makes has to last him the rest of his life.  Hope he is wiser with the rest of it than he was on the money he spent on the Bentley.

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3 minutes ago, NextYearBill said:

i hope he parks that Bentley on the steps of Chaifetz, while lighting up a cigar with a $100 bill, when recruits walk up 

That I don't disagree with.  He'd only be able to do that a few years though.

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46 minutes ago, majerus mojo said:

IMG_9700.JPG

+1

Bentleys aren't for me. I'm not a big car guy, a fairly equipped mid size SUV is my dream car. If I had Willie's money (or the money he is soon to have) I would spend it other ways. Personal economics are a matter of choice and values. I wish him finical security and future success.  

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He's making a million this year and will get close to $10 million in free agency. Buy a Bentley, buy a house. You earned it. 

A $200,000 car on a $1 million salary is probably a lower percentage than most on this board pay for their car. I don't see it as a big deal. 

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