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Started By
Message
to the mom 
0
Posted on 1/16/15 at 12:02 pm to yankeeundercover
Awesome, solid decision making all around on that.
Posted on 1/16/15 at 12:20 pm to yankeeundercover
Don't walk into any dark rooms.
Posted on 1/16/15 at 12:29 pm to DirtyMikeandtheBoys
quote:
Should've locked $3.5M in trust and given $1M to broker to make more
Not sure you know how trusts work. They can be invested, and often are.
Posted on 1/16/15 at 12:33 pm to yankeeundercover
Let's say basketball doesn't work out for him and he's out of the league in 5 years (hope it doesn't happen) - using the 4% rule, he's got a $180k per year, lifetime job - from which he cannot be fired, for just "being" Michael Carter-Williams.
In fact, more than that because - at just 4%, the $4.5 million will earn about half a mil over the 3 year trust period (maybe closer to a million, depending on how the money is invested) - so figure, $200k forever - and leaving the principal to his kids.
And that's even if he spends every penny of endorsement money and the rest of his contract money on hookers and blow.
That's the power of being smart with money.
In fact, more than that because - at just 4%, the $4.5 million will earn about half a mil over the 3 year trust period (maybe closer to a million, depending on how the money is invested) - so figure, $200k forever - and leaving the principal to his kids.
And that's even if he spends every penny of endorsement money and the rest of his contract money on hookers and blow.
That's the power of being smart with money.
Posted on 1/16/15 at 12:42 pm to TechDawg2007
quote:
what will that $4.5 million be worth in a trust after three years?
Absolutely nothing more than $4.5 mil. No interest is accrued in a trust. The only reason people choose to set up a trust is because the third party doesn't trust the person with the money.
Posted on 1/16/15 at 12:47 pm to Breauxsif
quote:
Breauxsif
quote:
Absolutely nothing more than $4.5 mil. No interest is accrued in a trust. The only reason people choose to set up a trust is because the third party doesn't trust the person with the money.
This is why the OT gets a bad rep. You are incorrect. Stop talking about shite you know nothing about.
Posted on 1/16/15 at 12:49 pm to Breauxsif
i hate seeing all these pro athletes being taken advantage of by vultures or their "buddies". I'd start a firm just to help them manage their money pro bono because it pisses me off seeing them broke. I know its sort of their fault, but most 18 year olds would act the same.
Posted on 1/16/15 at 1:05 pm to Breauxsif
quote:
Absolutely nothing more than $4.5 mil.
Wrong.
quote:
No interest is accrued in a trust.
Wrong.
quote:
The only reason people choose to set up a trust is because the third party doesn't trust the person with the money.
Wrong.
So many wrongs for such a short post.
Posted on 1/16/15 at 1:07 pm to barry
A decent trust makes 3-6%. Let's take the middle and say he make's 4.5%.
If he puts the $4.5 million in and doesn't touch it for 10 years, then the trust is worth around $6.7 million.
At that point, using the 4% rule, he can make around $267,000 for doing jack squat, and if he keeps his money in the same trust, he'll keep earning roughly $30,000 a year over what he is pulling out.
Smart man.
Compound interest is awesome.
If he puts the $4.5 million in and doesn't touch it for 10 years, then the trust is worth around $6.7 million.
At that point, using the 4% rule, he can make around $267,000 for doing jack squat, and if he keeps his money in the same trust, he'll keep earning roughly $30,000 a year over what he is pulling out.
Smart man.
Compound interest is awesome.
Posted on 1/16/15 at 6:03 pm to anc
quote:
anc
A decent trust makes 3-6%. Let's take the middle and say he make's 4.5%.
If he puts the $4.5 million in and doesn't touch it for 10 years, then the trust is worth around $6.7 million.
At that point, using the 4% rule, he can make around $267,000 for doing jack squat, and if he keeps his money in the same trust, he'll keep earning roughly $30,000 a year over what he is pulling out.
Smart man.
Compound interest is awesome.
What the hell. People who don't know shite about trusts everywhere today and in this thread. Stop assuming there is even interest applicable here. This is why I don't go on the money board.
Posted on 1/16/15 at 6:23 pm to yankeeundercover
I always liked him good to hear
Posted on 1/16/15 at 6:37 pm to yankeeundercover
Finally, someone with some sense.
Posted on 1/16/15 at 10:05 pm to Team Vote
Seems you could put all that money in CDs and earn about $100,000 a year, so I think I could manage.
Posted on 1/16/15 at 10:11 pm to HempHead
quote:Cept it's hard to come by 1% today.
3% will net you 135k a year. Easy money.
Posted on 1/16/15 at 10:13 pm to TigerDonk
quote:And realize his mom may be a trustee...and can cut checks from it.
What the hell. People who don't know shite about trusts everywhere today and in this thread. Stop assuming there is even interest applicable here.
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