Monday 20 August 2012

Saving is tough, even for NBA players

Helping people plan their investments is a rewarding practice in many ways. The greatest takeaway we can get receive from a client is when they call to say they've successfully achieved or undertaken some type of activity that they've been planning for years. Buying a car for their son, sending their daughter to university, purchasing a warm retirement home.

The financial planning aspect of our business at Madison Financial looks to guide people through the right hoops in order to achieve certain objectives. Creating a solid financial plan takes a good deal of diligence and whether you make $50,000 a year or $5 million, adapting your lifestyle to your budget in a way that will ensure you save money responsibly is difficult.

A recent move by the NBA is a sure testament to the reality that managing finances, big or small, is an important and necessary task. Many of us would have a tough time imagining struggling through retirement based on a $5 million salary, but it continues to happen all the time. See an excerpt from the article below.

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NBA Players Forced To Save Toward Retirement For First Time
By Scott Soshnick

National Basketball Association players, who were paid an average of about $5 million last season, will be forced for the first time to save money for retirement.

Beginning next season, players also will surrender 5 percent to 10 percent of their salary for retirement. They automatically will be enrolled in the program and would have to opt-out to keep from participating in the plan, Klempner said.

To visit the full article from Bloomberg, click here.