5 Reasons 78% of NFL Players Go Bankrupt Within 5 Years of Retirement

The average professional athlete in the U.S. will make more in one season than most Bankruptcyof us earn in our entire lives yet, despite those staggering salaries, 78% of NFL players, 60% of NBA players and a very large percentage of MLB players file for bankruptcy within 5 years of retirement.

Unfortunately, professional athletes are easy targets. They are highly visible, have lots of money and limited experience. With such a high rate of bankruptcy – of going (quickly) from fame to shame – the leagues should provide better guidance on how to avoid such occurrences. Before pointing the finger at athletes, however, it may be wise to step into their shoes (cleats) for a minute. Maybe their financial woes aren’t entirely their fault or a result of reckless spending.

Go here for a look at 5 possible reasons why such financial disaster may be so prevalent and how it could be avoided.

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1. Stop Denying the Reality of Your Life Situation & Start Dealing With It – Here Are 14 Things to Do

Let’s Stop Fooling Ourselves!…The American experience of rising standards of living and general prosperity have always rested upon a deep and healthy middle class….[one] of earnings and savings, not credit and borrowing… Simply continuing along the status quo is a vote for digging ourselves deeper as the constraints of the future arrive. Behavior change is necessary in order to improve our chances. [This article presents 14] prudent behaviors to adopt…as we start trending back towards more historic baselines. Words: 1340

2. In Debt? Kick it to the Curb, Get Rich, and Start Living Life to the Fullest! Here’s How

If you’re among those struggling with debt and just want to be rid of it and move on with your life, it can be helpful to find some information and inspiration from others who are financial experts or people working to pay off substantial amounts of debt. You’ll find all of that, and more, in these inspirational personal finance blogs that can offer you advice, motivation, and guidance in paying down your debts so you can start putting that money to other uses. Words: 1010

3. Guess What % of Americans STILL Have More Credit Card Debt Than Savings

The economy is slowly hobbling back to health but for many Americans the rainy day fund is still looking a little dry, the credit card bill is still looking a little scary [Unfortunately, the liklihood is that,] as the economy strengthens further, many Americans will…spend their new found extra cash rather than save it. Words: 474

4. New Consumer Earnings & Spending Data Show U.S. & E.U. Citizens Living Way Beyond Their Means

The west is living far beyond its means and is struggling with pitifully anemic growth. This is a long-term trend, and one that is only going to accelerate. Nevertheless, as obvious as the indicators may be, few people will actually do anything about it. A lifetime of propaganda will plant many heads in the sand, ignoring the dangers and opportunities all around. [Let’s take a close look at just what these indicators are.] Words: 311

5. Addiction to Credit Card Debt Remains Excessive Albeit Declining – Here are the Facts

<img width=”90″ height=”65″ src=”http://www.munknee.com/wp-content/uploads/2012/03/end-of-credit-cards-90×65.png” alt=”end of credit cards” title=”end of credit cards” />Households with credit card debt carry $16,000 at an average rate of 15% and, given that some households have little credit card debt, you can imagine how high the debt is for others.. Imagine, $16,000, but that is actually down by 17% as the grand American household deleveraging continues. [Be that as it may, credit card debt is still excessive with all ages and all income groups. Here are the facts.] Words: 760

6. 75% of Americans are in Deep _ _ _t!

<img title=”personal-finance3″ src=”http://www.munknee.com/wp-content/uploads/2011/08/personal-finance3-90×65.jpg” alt=”personal-finance3″ width=”90″ height=”65″ />Rising education and medical costs, on-going credit card interest payments, well used personal lines of credit and large mortgage debt and home equity loans – most a penchant for living beyond their means – is keeping 75% of American households in some degree of debt. Take a look and then pass it on to your friends, neighbors and co-workers.

7. And You Wonder Where Your Money Goes! Here’re the Costs of Living in the USA

The median household income in the U.S. is $51,914, according to U.S. Census Bureau data. To find out just where that cash is going, we’ve trolled through the latest data in employment, transportation, and common consumer expenditures. [Here it is.]

8. How the Poor, Middle Class and Rich Spend Their Money

How do Americans spend their money and how do budgets change across the income spectrum? The graph below answers these questions. Words: 240

9. The True Cost of Car Ownership is….OUCH!

We all know that the true cost of a car doesn’t end at it’s purchase price but most people don’t really know what the annual cost will actually amount to. The next time you are shopping for a car consider these additional costs.

10. Dire Implications for the +25% of American Workers Using Retirement Savings Accounts to Meet Current Expenses

More than 25% of American workers (33% of those in their 40s) with 401(k) and other retirement savings accounts use them to pay current expenses, new data show, [which is] undermining already shaky retirement security for millions of Americans. With federal policymakers eyeing cuts to Social Security benefits and Medicare to rein in soaring federal deficits, and traditional pensions in a long decline, retirement savings experts say the drain from the accounts has dire implications for future retirees. Words: 890

11. Don’t Even Think About It – Touching Your 401(k) That Is!

Look, if you’re absolutely stuck right now, then you’ve got to do what’s necessary but, in my opinion, you should avoid 401(k) hardship withdrawals at all costs … and think long and hard before you consider borrowing against your future retirement. With so many people nearing retirement already grossly underfunded [such actions are] going to prove catastrophic down the line. Words: 1043

12. Life Insurance: a Pot of Gold or Ready Cash?

A life insurance policy is intended to provide your family with a sizable amount of money should you meet an untimely death and, as such, can be said to be a something of a an ultimate bonanza – a pot of gold, if you will. Most people, however, think the only way to get money from a life insurance policy is to die but there is another way should your circumstances change and that is called a life settlement. In this article I provide you with some insider insights on how to go about negotiating the maximize payout on such a settlement. Words: 851

13. Is Your Household One of the 51% Projected to be at Risk in Retirement?

Many Americans are reacting to the economic downturn not by resolving to save more but by no longer actively planning for retirement. “That’s exactly the opposite of what they should be doing,’’ said Paul Ballew, senior vice president at Nationwide Insurance. Words: 369

14. 2% of U.S. Households Earn $450,000/yr. or More; 50% Earn $43,000 on Average – Exactly Where Does Your Income Put YOU?

Visit wsj.com – HERE – to find their calculator which shows where your household income stands compared to others in the U.S.. $506,000 puts you in the top 1%; the much talked about $250,00 in the top 6%; $200,000 in the top 10% while an annual salary of $43,000 puts you in the top/bottom 50%. Where do you stand?

15. Home “Owners”: Here Are 10 Advantages to Paying Off Your Mortgage Early

Paying off the mortgage early is an idea with obvious appeal, but not one that many middle-class home “owners” pursue. If your interest rate is so good that the bank just made a bad bet in giving you that low rate, you might want to continue enjoying the benefits as long as possible. In many other circumstances, however, paying off the mortgage can be a fine money management move indeed. [Below are 10 sound reasons to do so.] Words: 1588

16. Is $1,000,000 Enough to Provide for a Successful 30-year Retirement?

Withdrawing from a $1,000,000 nest egg upon retirement using the familiar 4% rule to generate a successful 30-year inflation-adjusted (3% per annum) retirement proved to be totally inadequate as per the retirement withdrawal strategy that I put forth in a previous article (1). In fact, it crashed and burned in year 25 of the 30-year plan! In fact, as I show in this article, it will only succeed if your portfolio outperforms the S&P 500 by 5% every year for 30 straight years – and what is the likelihood of that? Words: 1533

17. Don’t be Cheap, be Frugal! Here are 10 Ways to Get More for Your Money

Frugality often gets a bad rap. Many people misunderstand frugality and assume that it’s nothing more than being “cheap” when, in reality, frugality is making sure that you get the most from the money and resources you have, even if they are limited. [Here are 10 ways to do just that.] Words: 1132

18. Are You a Millionaire? 10 Reasons You May Not Be and What to do About It

The reason you are not a millionaire (or even on your way to becoming one) is really quite simple. You probably assume it’s because you aren’t earning enough money but the truth is that, for most people, it does not matter how much money you make… [but, rather,] the way you treat money in your daily life. [Let me explain.] Words: 875

19. More Reasons You May Not be a Millionaire – Yet

Many people assume they aren’t rich because they don’t earn enough money. If I only earned a little more, I could save and invest better, they say. The problem with that theory is they were probably making exactly the same argument before their last several raises. Becoming a millionaire has less to do with how much you make, it’s how you treat money in your daily life. The list of reasons you may not be rich doesn’t end at 10. [Here are 10 more.] Words: 842

20. 10 Money Ideas That WILL Change Your Life

Personal finance isn’t nuclear physics – just spend less than you earn, save and invest the rest – but knowing what should be done and actually doing it, however, are two different things. Here are 10 money lessons I wish I had known when I was 20 which have the power to change your life if you are willing to embrace them. Words: 1340

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