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So Brett Favre is a Jet
By admin | August 7, 2008
As it has been said before, I am a huge sports fan. I soak it up. I love sports but this whole Brett Favre saga got a little ridiculous.
He is officially a Jet and I am looking forward to see what he can do with his new team but do you realize what he gave up to do that?
The Packers offered Favre $20 million dollars over the next 10 years to STAY RETIRED. Let me repeat that, they were going to pay him 2 million dollars a year to just chill in Mississippi. I LOVE what I do but if someone gave me that offer I might be thinking pretty hard on it.
Life is definitely not about money which I have stated many times but let me put numbers behind what he turned down.
He is 39 years old. He has made a LOT of money already. So he obviously does not need the money. Let’s say he just lives on what he already has and invests the new 2 million dollars per year (just for fun) in a Roth IRA and it grows at the market average of 12% per year. Take a look at the math:
Each year his nest egg grows more and more. Take a look at what happens when he is 50 and the Packers would have stopped paying him (you think he will be missing it?)
At age 50 he gained 4.7 million dollars of new money!! At age 51 - 5.2 million. At age 52 - 5.9 million. Each year this amount grows more and more because of the prior year’s interest being reinvested.
This is the POWER of compound interest. At age 60 he is gaining 14.6 million dollars per year and since it was in his ROTH IRA he can withdraw it TAX FREE!!!
Let me recap how powerful that was. He originally invested 20 million dollars. Now the investment is worth 136 million dollars and is earning almost 15 million dollars a year. Would that be something you’d be interested in?
For most people you can take off a few of those zeros and the numbers are still the same. The power of compound interest is REAL.
The average NFL quarterback makes 1.9 million a year.
Brett, you sure you made the right choice?
Is it too late for him to retire again? Maybe I should call him.
Topics: Investments, Life, Saving |
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