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re: What happened with Jarmarcus Russell's career earnings?
Posted on 2/10/22 at 9:41 am to atltiger6487
Posted on 2/10/22 at 9:41 am to atltiger6487
quote:
He made $39 million in career earnings. Taxes and agent fees took half, so let's say he netted $20m.
We're talking about the same thing. You just netted out his expenses. Like I said, unless there is nuance to the term "guaranteed", he grossed a little over 5 mil a year on average. Even if it's up front, it's 5 mil a year gross average for duration of his contract.
You don't need to explain taxes to me like I'm a toddler. I'm an accountant.
This post was edited on 2/10/22 at 9:43 am
0
Posted on 2/10/22 at 9:46 am to boudinman
quote:
including $32,000,000 guaranteed
quote:
JaMarcus Russell's net worth in 2021 is $4 million.
quote:
How does one lose $28M in 13 years?
Your numbers are a bit off due to taxes, agents, and other stupid expenses. Russell was taxed approx. 38% of his guaranteed up front money. ($32M x 38% = $12M in taxes, so he then has $20M). His agent gets 5~10% of the contract. 7% of $32M = $2.25M. His contract is then down to $17.5M.
Russell likely bought Escalades for his entourage and houses for all of his family members. He also bought several million in "iced out" jewelry. Probably spent a bunch going to the strip clubs and night clubs weekly. Add in the Purple Drank and other stupid stuff he blew his money on, and it's easy to see where the money went.
Happens all the time in the NFL, which is why the League now has classes for rookies on how NOT to spend your money.
Posted on 2/10/22 at 9:51 am to boudinman
quote:
JaMarcus Russell's net worth in 2021 is $4 million. This is according to numerous reputable outlets, including Celebrity Net Worth.
I pray to God your stupidity on here is just an act.
Posted on 2/10/22 at 9:51 am to boudinman
3% Agent Commission for 1.83 million.
In 2007, the top federal tax rate was 35% so once you calculate that, the tax on 61 Million is 21,329,074
Hard to figure his state tax since it is based on games he plays in certain states. Lets say half of his income was in California at an effective rate of around 10.5 (that was about he highest bracket in California in 2007). That's 3,205,446 in California. Lets half that for the rest of the states to be conservative. Another 1.6 million gone. Totaling taxes and agent fee, that's
28 million gone.
In 2007, the top federal tax rate was 35% so once you calculate that, the tax on 61 Million is 21,329,074
Hard to figure his state tax since it is based on games he plays in certain states. Lets say half of his income was in California at an effective rate of around 10.5 (that was about he highest bracket in California in 2007). That's 3,205,446 in California. Lets half that for the rest of the states to be conservative. Another 1.6 million gone. Totaling taxes and agent fee, that's
28 million gone.
Posted on 2/10/22 at 9:53 am to boudinman
This is the case with 50% or more of all professional athletes that have never taken or understood a simple economics class.
Posted on 2/10/22 at 9:57 am to boudinman
quote:
JaMarcus Russell's net worth in 2021 is $4 million. This is according to numerous reputable outlets, including Celebrity Net Worth.
None of those websites actually know anything. The only people that know are JaMarcus and his accountant, and they aren't talking.
Posted on 2/10/22 at 10:01 am to boudinman
He ate them
Posted on 2/10/22 at 10:02 am to atltiger6487
quote:
Let's say he spent $5m. Down to $15m.
If he's wise, he'll invest prudently and only withdraw 4% per year to live on and spend. That's $600k.
If he was Wise, he would have taken $5mm and put it in an income annuity…given him 6 figure income for life (lifestyle off that income) Taken the $10mm and invested conservatively.
Grows his wealth steady and doesn’t need to withdrawal. Family wealth created.
In 25-30 years, At 4% net return he’s pushing $30mm+
This post was edited on 2/10/22 at 10:07 am
Posted on 2/10/22 at 10:08 am to boudinman
Wow! Slow news day…
Posted on 2/10/22 at 10:13 am to bstew3006
quote:I wasn't saying he should withdraw 4% of the PRINCIPAL every year.
If he was Wise, he would have taken $5mm and put it in an income annuity…given him 6 figure income for life (lifestyle off that income) Taken the $10mm and invested conservatively. Grows his wealth steady and doesn’t need to withdrawal. Family wealth created.
I was saying invest the principal, it grows, and then he has to withdraw some of the balance to live on. But withdrawing only 4% should come from his returns, and his principal balance would never be touched.
That ensures family wealth is created and maintained, as you say.
Posted on 2/10/22 at 10:15 am to boudinman
Well, don't think he's broke. Last year, he leased a house down the street from me while building in U-Club. Rumor was he wanted to establish residency here so his kid(s) could go to school here. Was coaching in Mobile during football then heading over here. Has since moved away so maybe the house was completed. Several complaints to the HOA about the late night poker games in the carport along with that special smell...
Posted on 2/10/22 at 10:20 am to boudinman
has he done any media in the last decade? he seemingly dropped off the face of the earth
Posted on 2/10/22 at 10:23 am to dukke v
quote:
If I had $32 million why would I need to invest in anything. It’s not like I need more money….
Would you like to live off of $1.2million per year for the rest of your life (and your descendants do the same)?
At 4% return you would never touch the principle and that could happen. Get some TIPs/I-bonds and gold hedge for inflation (before the inflation baw hawks pile on).
Hear da "why invest" pernt
Posted on 2/10/22 at 10:24 am to atltiger6487
quote:
was saying invest the principal, it grows, and then he has to withdraw some of the balance to live on. But withdrawing only 4% should come from his returns, and his principal balance would never be touched.
I get what you’re saying.
I’m just in the lane of producing Income that one can’t outspend/liquidate and have investment that’s not touched.
$20mm sign on bonus - after taxes / Agent fees, left with $10mm
$5mm income annuity (income every year and doesn’t stop) equals to $170k-$185k per year for life starting at age 24.
Remaining $5mm - financial advisor invest conservatively to get an overall return of 4%-5%.
Over 30years (age 54)- person has been paid $175k per totaling $5.25mm and has est. $20mm+ invested.
Most people hate income annuities, don’t mention them on the money board lol…but let’s be honest, overwhelming majority of people can’t control spending habits, will also withdrawal at the worst time (liquidation faster) and this would give them that ability to control it and not be broke.
I somehow lick up and win powerball…give me cash, I’ll set an income annuity that produces the income I desire and invest the rest moderately.
This post was edited on 2/10/22 at 10:38 am
Posted on 2/10/22 at 10:28 am to boudinman
Who knows, who cares and it’s none of your business
Since you’re asking personal questions are you circumcised ?
Since you’re asking personal questions are you circumcised ?
Posted on 2/10/22 at 10:31 am to Sleepy_Tiger
known expenditures are taxes and agent/lawyer % fees. everything else is conjecture. it has been known for a long time, though, that many athletes arrive on the big stage with large contracts and not a lot of education about wealth management. things are better now than they used to be in that regard, but there's always the risk that someone who blows $5 will just as easily blow $5m.
Posted on 2/10/22 at 10:45 am to TBoy
quote:
TBoy
frick you
Liberal pussy
Posted on 2/10/22 at 10:57 am to Geaux62
quote:
Well, don't think he's broke. Last year, he leased a house down the street from me while building in U-Club. Rumor was he wanted to establish residency here so his kid(s) could go to school here. Was coaching in Mobile during football then heading over here. Has since moved away so maybe the house was completed. Several complaints to the HOA about the late night poker games in the carport along with that special smell...
Yeah I read something several years back that, despite what many would assume, he actually invested his money well and was doing just fine financially
Posted on 2/10/22 at 11:50 am to lsufball19
I saw him playing Craps at the Scarlet Pearl in Biloxi Saturday morning at 10:30am.
He was in a fur jacket and slippers lol.
He was in a fur jacket and slippers lol.
Posted on 2/10/22 at 12:03 pm to boudinman
Well, he wasn’t smart enough to play football given the physical tools so maybe not smart enough to hold on to the coins. Just sayin’. 
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