Ray Lewis (yeah yeah, we know) has had a number of posts go viral lately, just because he’s been dropping the truth hammer right on people who need to hear truth (see Ray Lewis On The Point Of Tears As He SLAMS Baltimore Rioters and POWERFUL: NFL Star Ray Lewis Puts #BlackLivesMatter on Notice).
According to Lewis, many athletes who enter professional leagues in their earlier 20s lack the financial know-how to establish the financial stability needed to keep them afloat after their contracts expire.
Success like Lewis’s is rare for NFL players. According to Fox Business, the average NFL career lasts less than three seasons, and the average career earnings after taxes are about $4 million, though most players earn much less.
“Everybody’s not signing a $20 million contract. Some guys are coming in and their signing bonus is $2 million,” Lewis told Fox Business. “At a 39.5 percent [tax bracket], you break that down, you may walk out with $1.4 million. So now you have to start managing that, but before you start managing that, you have to pay back everything you’ve spent.”
Careful money management is a vital tool that Lewis is determined to share with young professionals looking to make their money last long after their careers have peaked.
40% in taxes? They need to pay their fair share!
The truth is that somebody unlucky enough to be transplanted in oh, say California, would be facing a top marginal income tax rate north of 50%. So when people demand that the wealthy pay their fair share, well, if half isn’t enough, what is? Answer me by tweeting @Scrowder
Seriously though, you’d think there’d be more people speaking out on this after all these years. Instead, people are surprised that when you give young people not used to having money a whole lot of money, they act like… young people not used to having money suddenly getting a whole lot of money.
Now, replace “athletes” with “Bernie Sanders voters” and you’ve got the current voting base.
What could go wrong? Send them to free college, and ensure a crazy minimum salary once they get out. That’s the ticket! Take the #FightFor15 crowd. It’s simply a union-run racket whose sole goal is to get unskilled labor more money. Are they pushing for financial education? No. Are they pushing for retirement coaching? No. They’re simply pushing for largely uneducated, unskilled workers to double their salary, overnight. How do you think that story ends?
Well, look to many professional athletes. Or lottery winners. Nearly half of them go broke too. With millions!
The point is this: the idea that the “wealthy” simply inherited it or “didn’t build that” is a myth. Procuring serious wealth is a long, arduous, time-consuming process. Maintaining it is even more difficult. The borderline life-consuming pursuit also requires said individual to learn wealth management. The vast majority of people who gain significant wealth in the United States have earned it, and that’s why, unlike athletes or lottery winners or welfare recipients, they’re able to keep it.
The respect of finance knows no income class either. Think about everyone you know living above their means vs. those of us who have smaller houses and more reasonable cars. Many of them likely make less than you. But they’ve made decisions that lead to short-term leisure, not long-term wealth.
But once all of your 80 hour work weeks have paid off and you really start to do well for yourself… expect those same people to be there with their hand out. Always.
This, is why “Democratic Socialism” doesn’t work…