🤔💸 Have you heard about Shaquille O'Neal's recommendation on saving and investing 75% of your earnings for retirement and other long-term goals, and living off the remaining 25%? 🤑
📈 It seems pretty high, right? But Shaq did mention in his CNBC article that 50% is also a good starting point. What are your thoughts on this? 💭
💡 Here's a possible solution: why not start with a middle ground, like 50%, and gradually increase it over time as you become more comfortable with saving and investing? 📊
💰 Remember, the key is to find a balance that works for you and your financial goals. It's all about creating a plan that sets you up for success in the long run! 💪
#Saving #Investing #FinancialGoals #RetirementPlanning #ShaqWisdom
That’s probably good advice for people on a $10 million salary.
Why are you looking to a basketball player with no particular financial expertise for financial advice?
Of course it would be great if you could save or invest 75% of your income. That’s obviously not realistic for the vast majority of people.
This is an excellent lesson. If you make $50k, saving $25k is hard. But if you make $1m, saving $500k is “relatively” easy because your basic needs + some extra fun money can arguably be met with $500k.
If you are in professional sports, you likely aren’t going to have 30 years to save 15%. You have 5-10 years of very high income and then the next 20 years trying to keep up with bad habits from the time in the limelight. Saving and investing most of your money is the only way to not go bankrupt within 5 years of leaving your sport.
Pretty sure most NBA players don’t follow this recommendation, and probably should.
Well the guys owns a ton of stuff and has a fortune…. It helps when you have millions to invest and your a likeable celebrity that does endorsements for everything
And buy into Papa Johns and Reebok…
I prefer to invest 69.420%.
Percentages are arbitrary and meaningless invest as much as you can or want to.
Probably makes sense for basketball players. They are essentially forced to be in the fire community whether they like it or not. For normal people ev n 20-25% is probably just fine.
For fire, 25-50% is pretty common. Just depends how aggressive you want to be and how much you want to enjoy now vs retire sooner.
this makes totally sense if your income is a couple of $$$ millions a year 🤠
Was he saying everyone should do this or just professional athletes?
Do you understand that someone in a job that pays tens of millions a year but only lasts about ten years at best has a different perspective on how much to save?
Every time I turn on network TV, Shaq gets paid. Probably coasting on $10m or more every year for his Hoops analysis and shilling every product from Alkaline water to Icy Hot to driving around with that cartoon General. Spending $2.5 mil is probably easier than you’d think, but you can live a pretty good lifestyle on it.
VERY few people can do that. 20% is a more realistic goal once you are out of the entry level job
Great advice if you have a huge salary for a limited amount of time, or if you have a salary that greatly exceeds the basic cost of living expenses and you want to retire decades early.
If you want to determine a %, look at what % of your income rent, food, internet & phone, and transportation take up. Look at what your employer matches for 401k, add that in, or some other very minimal retirement savings, often 10% of income. What’s left over? Ask yourself if your goal is to retire early, to meet certain future goals, etc, and what’s that’s worth in terms of what you have left as far as your budget and lifestyle. Be realistic. If you want to spend the remaining % on traveling or whatever, just know what it costs in terms of opportunity.
All you have to do is grow to 7’0″ and dominate in the NBA.
Problem is if I do that, I’d only have like $25,000
Doubt that’s enough to pay for mortgage, bills, taxes, gas, groceries and other necessary expenses
I mean….that’s pretty easy to do when your remaining 25% is still in the 7-figures.
Great advice for athletes who make tens of millions of dollars in their 20s and retire in their 30s. Not great advice for the common folk
If you are an athlete making 10 mil a year this is sage advice.
75% is realistic is you’re making millions which most people don’t.
If you’re a professional athlete who expects to earn a huge sum for a very brief window before losing their earnings potential, yes, 75% of your after-tax sounds about right. The same applies if you’re in sales and miraculously land a huge commission, etc.
For someone with a more common earnings trajectory, no, it does not make sense.
Good advice if you can swing it lol. Saving more than you spend is always a good thing.
His talking about those NBA athletes that earns 20-60M per year is easy to save 75-90% on that salary
For lower middle class that is extremely difficult.
This only works if you make enough that you can live decently on the 25%. But I think its good advice if you make good money, instead of just letting your lifestyle go crazy live relatively cheaply and bank all the excess and you could retire early or atleast retire at all.
I did this for four years living at home after college, wasn’t exactly 75% but started saving 5K and spent 2K after taxes and investments, went up from there. Shaq knows what’s up
We saved 50% for 8 years on a $120 HHI. We’re sitting pretty now!