Why Rich People Go Broke
by Erik Folgate
Filed under Insurance, Investing, Spending and Saving
I was reading Sports Illustrated, and I came across this statistic:
78% of former NFL players go bankrupt or are under major money stress due to joblessness within 2 years after retirement. 60% of NBA players are broke within 5 years after retirement.
Does that surprise you? It didn’t surprise me that a lot professional athletes end up squandering their wealth after they retire, but this number really caught my attention. How can it be that almost 4 out of 5 NFL players bo bankrupt? I think there are several reasons for this:
