Common sense to anyone with financial literacy but he claims many players don’t which is why they let others handle their money

People fucking with your money is a crime as old as time itself. It’s way easier when you don’t know and don’t keep an eye on it. Unfortunately whether you have it or not being financially literate and watching your money is crucial to keeping it.

Half the time they hire their buddy to manage it and weirdly it never goes well. Sometimes it’s an outside advisor who they don’t vet well enough.

Just an unfortunate reality that when you suddenly come into a lot money, a ton of people around you or who want to be around you won’t act in good faith about it.

An NHL player, Jack Johnson, literally had his money stolen by his parents and went bankrupt…while still playing in the league. Money does weird things to people.

Yeah, it was a local Morgan Stanley franchise owner not employed directly by MS, when dealing with millions that’s a poor decision on managing your money… the actual Wall Street firms aren’t fucking around with your money, it’s always some small time scammer or a relative. Not to mention you can actually then sue MS and get your money back as Jrue Holiday did (undisclosed settlement) uncle Jimbo ain’t giving you shit back.

Yeah, but you can sue Morgan Stanley and get your money back.

You can also sue your cousin’s friend’s dad but he won’t have money to pay you back.

It’s not just athletes they target. Bernie Madoff got the owner of the Mets

Same thing happened to Tim Duncan, the man who notoriously studied building code. But seriously any player could fall victim to this

Not NBA, but Shohei Ohtani was perhaps the most famous example of this

Yeah, it’s amazing how many stories we hear of millionaires getting screwed by financial advisors or managers.

Why hire someone? Just deposit it into an interest earning bank account. You don’t need an MBA in finance to figure that out

These dudes will do everything to convince you they couldn’t google this and learn, in 2 hours, enough to have their money in index funds where this just doesn’t happen…

Yeah just fucking hire Morgan Stanley, UBS or Goldman wealth management. You won’t get ripped off, you’re not going to be even close to their richest client even as an nba player, which is actually a positive.

The point of the video is that athletes get preyed upon by bad money managers. And I bet there’s a looooot of truth in it. There’s a lot of stories about guys who get screwed by bad investments or outright thievery and fraud by people they thought were reputable. I don’t think it’s always fair to blame the victim that they did try to do the right thing and got screwed over

What Brown misses is that while athletes do get screwed by money managers, they also spend too much and choose to do dumb investments, convinced by their circle.

It’s not as easy as you think to go from high school or college from a poor or middle class family and suddenly make multimillions of dollars and know what to do with it and who to trust or how to set a budget. This circumstance sets a lot of guys up to fail.

This is it. Earn like a king; live like a duke.

acting like he made a bunch, when he literally dropped all of the $16,000 he earned in his NBA career with those tiny ass hands

Easy answer? They’re stupid

Long answer? Too long to go into detail but the main key things = stupid + young + thinking the money will last forever + living a lifestyle beyond their means + no financial skills + leeching family and friend pressure + scammy financial/business folk and their pitches

It’s like the lottery ticket winners often blow all their money and end up with more debt than they originally had

Because the average career is like 5 years and they’re in their early 20’s and spent their life being worshipped and they’re keeping up with the joneses

A lot of them grew up in families that aren’t well off. They never had habit of saving growing up. And they might even borrow on credit cards to consume whatever they want. 

Once you have that saving mindset, then it’s a different starting point. 

So I think I have a semi real answer to this question. I come from a well educated family. Advanced degrees abound. People with successful careers in Academia, government and the arts. Most of us are very financially responsible. Not a lot of debt and a lot of home ownership.

Not too recently my parents came to me and talked to me about how they could invest their money smartly. They didn’t need huge returns and didn’t want a lot of risk but they didn’t just want their money sitting in a savings account either. I’m no finance professional but I’m enough of a knowledgeable jack of all trades that I knew enough to say that an index fund was a good idea. They then asked me to help them with that.

And I…had no idea whatsoever how to do it. There is no index fund store. It has not come up in my path to adulthood. I am smart enough to type that question into Google so that I eventually figured it out but even then it involved researching the right funds(and ignoring the ads) and knowing what’s best for tax purposes and…honestly even thinking about it gives me a headache.

Now imagine you’re a 19 year old kid. And you’re not from a well educated family. Odds are you’re going to go to someone you trust and say “you handle this for me”. Which is precisely where the problems start.

Because they’re 20 years old, surrounded by other 20 year olds, and all you have to do is listen to one story like Brown’s and you’ll have your question answered.

Does that come with a bust down watch??

Most of them lack smarts in certain areas. The saavy ones do take the advice. When LeBron was in Cleveland, Warren Buffett was at a game and afterwards LeBron asked Buffett how he would recommend investing his money and Buffett told him to buy index funds. IIRC he took that advice and put a decent amount of money into index funds, probably a huge reason why he is as successful as he is right now. But LeBron is one of the most saavy players when it comes to this

They don’t really know what that is

Gronk for how stupid he seems or looks never touched any of his salary and just lived off the endorsement money

Because they want nice stuff now, not 20-30 years from now.

I think the people on the internet truly underestimate just how poorly educated the average pro athlete is. It’s why so many leagues now have structured seminars for their players about it. They literally know nothing about money, how it works, what interest is, and if you add into that the lack of knowledge they have about what is a reasonable price to pay for any kind of service? They’re just ripe for taking advantage of.

These are multimillionaires they have access to asset classes that normies don’t. Why would they invest like a normie?

They autopopulate in every single thread about $$. Its ugly and predictable

Kawhi has no regrets at least when it comes to making money.

Kwame Brown total earnings in his 12yr NBA career is $64M. This doesn’t account for any endorsement deals he was paid. So, yeah, it’s easier to blow through 1-2M but 64?

Name the nightclub The Index and problem solved 

wtf are you talking about. Tons of people in high paying jobs do exactly that. Put it nearly all in index funds, real estate and bonds with varying ratios. Its also common to max out 401k and IRAs.

If anything for regular high earners the issue is taking this too far in pursuit of FIRE

The nba does offer money management courses to all players

this is the way r/Bogleheads

If only there was a way someone with an 80 Iq could learn in half a day on any of the 20 offseason weekends these dudes have..