Yahoo Finance I’m a Millionaire Athlete: Here’s How I Invest in My Children’s Futures
When the National Basketball Association (NBA) wrapped up its in-season tournament with a Los Angeles Lakers victory over the New York Knicks in the championship final on Dec. 9, all players on the winning team received $500,000 in compensation for winning the inaugural NBA Cup.
Although his New Orleans Pelicans bowed out in the tournament semi-finals, Jose Alvarado, the 25-year-old defensive wiz playing in his third NBA season, made it known early what he was going to do with whatever payout he received, and it wasn’t up for debate.
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Speaking to Andscape’s Marc Spears, Alvarado said, “I will not touch the money. My financial team will act like I never made it. It’s not for me. It’s not in my hands. I’m living my life. They got to live their lives and I don’t want them to struggle at all. This is the first time I’m telling everybody. I just know what I want to do.”
Top sports and entertainment stars make great money, but like the rest of the general U.S. population, they’re often not taught how to properly manage new wealth. Like us, they have financial concerns and responsibilities, but unlike most of us, they are often handed huge fortunes when they are young and ill-equipped to handle the responsibilities that come with them.
“Grand Theft Alvarado” eventually pocketed $100,000 for reaching the semi-finals. He is already set to make over $1.8 million this year, close to $2 million next year and has already earned around $3 million since the start of his professional career. His contract was converted to a standard four-year, $6.5 million salary in March 2022.
Learning financial obligations is important for Alvarado, who has two daughters and a step-daughter. Like many of his peers, he knows he can make a lot of money with his combined salary and brand, but is focused on providing for his family. “A lot of people aren’t that fortunate, but I am,” he said.
“I ain’t struggling now. I’m blessed to be financially good. So why do I need to add that extra load? Let that grow and let them have it […] I just want this game to keep me blessed and I don’t want my kids to worry about nothing,” Alvarado said.
As CNBC’s Make It revealed, regardless of if Alvarado and his financial team choose a high-yield savings account or a tax-advantaged retirement plan, the returns will provide his daughters a bountiful future.
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A 5% high-yield savings account investment of $100,000 will bring in around $331.000 after 24 years, “When Alvarado’s youngest daughter will reach her father’s age,” noted the site. Throwing the entire $100K into an 8% return retirement savings account can grow to $7 million by the time his oldest daughter reaches 67 years.
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This article originally appeared on GOBankingRates.com: I’m a Millionaire Athlete: Here’s How I Invest in My Children’s Futures
