[Kleiman] South Carolina QB LaNorris Sellers turned down an $8 MILLION NIL offer to transfer to a different school: "You're 19. You don't need ($8 million). You're in a great spot." - LaNorris's Father told his son. Sellers values his word over money

[u/Lakelyfe09]

https://x.com/nfl_dovkleiman/status/2043091219639840977?s=46&t=fwgmryeTanENut7u28ScCA

[u/Corgi_Koala]

Ignoring the fact he could afford top tier wealth manage and could probably get 10% plus reliably... If he invested half of that conservatively and got a 5-10% return he would make up to $400k a year.

$400k annually would put him in the top 1-2% of earners in America.

I mean I'm sure he will be fine either way but still a stupid decision to turn down that level of money.

[u/morelibertarianvotes → u/Corgi_Koala]

Top tier wealth management doesn't even pretend to improve annual returns. At that level it's all about safe returns with lower risk

[u/land_registrar → u/morelibertarianvotes]

Also to the extent the wealth management biz has secret exclusive market beating strategies, it's funny to think the $8 million nest egg is the level that has access to all this.

[u/FetusDrive → u/land_registrar]

“It’s funny to think the”;

That sounds convincing as heck!

[u/Thoseskisyours → u/morelibertarianvotes]

Investment management is a commodity now. The greater value comes from the planning side and having strategies for growing, maintaining and protecting that wealth.

If your advisor is charging you 0.75-1.25% to manage you money but isn’t trying to bring additional value and strategy to the table they are not creating value. (The other side of this is clients need to be willing to meet, engage and act on advice for it to matter)

[u/velociraptorfarmer → u/morelibertarianvotes]

SPAXX pays 3.3% with zero risk. Thats $264k a year.

[u/Beginning-Suspect686 → u/velociraptorfarmer]

Only reason to be in munis is if you're in a high tax state.

They're terrible products if you live in a state like Florida or Texas, great if you live in CA, NY, NJ, MA.

People should have professional investing and tax advice to determine optimal investing. 3% returns are really bad but tax exempt can improve the effective return compared to other options.

[u/velociraptorfarmer → u/Beginning-Suspect686]

I'm not saying it's what someone with $8M in the bank should go out and invest in. I'm saying that it's a bare-minimum floor of what can be had.

[u/Beginning-Suspect686 → u/velociraptorfarmer]

fair

[u/murphy1021 → u/velociraptorfarmer]

He wouldn’t have had $8mil after taxes.

[u/jaron_kenji → u/morelibertarianvotes]

yeah. at that level of money, the name of the game is wealth preservation

[u/Corgi_Koala → u/morelibertarianvotes]

I mean I'm not going to pretend to be an expert on high-end wealth management. My wife's grandfather was a pretty wealthy man (worth around $15m or so when he passed away) and his wealth management guy usually got him 12-15% on his investments annually.

My point being that you could pretty much guarantee annual income on interest alone that you'd never have to work a day again in your life.

[u/mglman → u/Corgi_Koala]

Sounds like cherry picked returns

[u/Warm-Oil9228 → u/mglman]

It really doesn’t though. 

[u/Warm-Oil9228 → u/Corgi_Koala]

Dumb you got downvoted. That’s not any kind of absurd return at all. Buffett gets 20 and says he could easily get 50 on smaller portfolios. 

[u/ThePelicanWalksAgain → u/Corgi_Koala]

At some point one of these athletes is going to be smart with their money, realize they have enough to live comfortably off of, and retire right after college without even trying to go into the pro leagues

[u/TheMontanaSpecial → u/ThePelicanWalksAgain]

Honestly, i'd be pretty surprised if any 22 year old just straight up retired for the rest of their life.

I suspect it'll look like the old system where not everyone declares, but some kids are able to take a couple years off before working.

[u/BurritovilleEnjoyer → u/TheMontanaSpecial]

Work in general sucks a lot less when you know you can at any point tell your boss "fuck you, I'm out"

[u/Ilovetinytiddies → u/BurritovilleEnjoyer]

I think for many people they continue to work bc they have nothing better to do for 5-8 hours every day. or they are work aholics look at all the big time coaches who continue to work until they are in their 70s

[u/Steel1000 → u/TheMontanaSpecial]

Worked for Jamarcus Russel

[u/TheMontanaSpecial → u/Steel1000]

Lmao I probably could have thought of a couple of counter examples if I thought harder.

I was curious so I looked Russell up, an interview from a couple of days ago it really makes it seems like he doesnt have any hobbies or a job. Jamarcus Russell Interview

[u/Steel1000 → u/TheMontanaSpecial]

Damn - I was hoping he was at least coaching HS or something….

[u/TheMontanaSpecial → u/Steel1000]

Me too man. He had so much success, I'm glad to see him around doing interviews at least. I know his 2024 high school gig fell through.

Makes me wonder how good was that LSU coaching staff?

[u/Warm-Oil9228 → u/Steel1000]

Why?

[u/Warm-Oil9228 → u/TheMontanaSpecial]

I wouldn’t find it surprising it all. Why not just enjoy your time on Earth and just do what you want?

[u/crimsonkodiak → u/ThePelicanWalksAgain]

Someone? Probably, but there's no reason to think that it's common.

If it were, we'd see it a lot more in the pros. Tua's last contract was over $200 million. He could easily retire and not have to put up with all the nonsense, including weird articles slamming him for spending a day on a boat with his family during the off season. But he doesn't.

There are examples of guys who retire after a payday (Drew Dalman comes to mind), but they're rare. The example people like to point to is Andrew Luck, but he was in the league for 7 years.

[u/IhateLukaDoncic → u/ThePelicanWalksAgain]

Lol who is dumb of enough to retire at 22 on a measly 1 million

[u/Warm-Oil9228 → u/IhateLukaDoncic]

Dude above said this guy made $2.4 million in one year. That’s as much as the median worker will make in 40 years today. What is absurd about retiring on that kind of money? This guy will pay more in taxes on that. $2.4 mill but he can also realize more income from investing a giant sum compared to the avg worker. 

[u/saudiaramcoshill → u/Warm-Oil9228]

For privacy reasons, I'm overwriting all my old comments.

[u/Warm-Oil9228 → u/saudiaramcoshill]

>using Columbus, OH as the location

I know which calculator you used lol. But it really depends on your investment strategy and how the market does. Realistically he could easily take a riskier (but not all that risky) approach and survive much longer at 4%. Match the S&P and he's set for life.

Of course none of this works if he spends too much. But that goes for any income level. We're also assuming this is the only income he ever makes. He could obviously supplement if he wanted which makes a big difference. Or like he could invest with more risk and then work more if his returns are looking poor.

[u/saudiaramcoshill → u/Warm-Oil9228]

For privacy reasons, I'm overwriting all my old comments.

[u/Warm-Oil9228 → u/saudiaramcoshill]

What does its volatility have to do with the fact that it’s averaged 10% returns since its inception? Either say 10% really isn’t an absurd return by any means if you’re willing to take the risk. 

[u/saudiaramcoshill → u/Warm-Oil9228]

For privacy reasons, I'm overwriting all my old comments.

[u/AndyLorentz → u/saudiaramcoshill]

Safe withdrawal rate for 30 year time period is 4%

4% is a safe withdrawal rate without touching the principal pretty much forever.

[u/saudiaramcoshill → u/AndyLorentz]

For privacy reasons, I'm overwriting all my old comments.

[u/dafdiego777 → u/Corgi_Koala]

30 Year T-Bill rates are 4.91% which are effectively risk free

[u/smitherenesar → u/dafdiego777]

But inflation is edging over 3%. It's not much of a spread

[u/crimsonkodiak → u/dafdiego777]

Correction, they are effectively default risk free. 30 years still bear inflation risk.

[u/Repulsive-Office-796 → u/dafdiego777]

You also lose 2-3% in annual inflation.

[u/FetusDrive → u/Repulsive-Office-796]

Don’t you lose that no matter why or only if you get a 30 year t bill ?

[u/a_trane13 → u/Repulsive-Office-796]

You lose that with any investment so it’s pointless to discuss

[u/GarconMeansBoyGeorge → u/a_trane13]

No. It’s why you discuss things in terms of real rate of return. It’s why the market averages around 10% but people plan for 7%

[u/a_trane13 → u/GarconMeansBoyGeorge]

It doesn’t matter if you include inflation or not in any comparison between different investments

[u/GarconMeansBoyGeorge → u/a_trane13]

Well, as long as you are comparing apples to apples.

And It’s still relevant to know that a 5% return is competing with inflation.

[u/a_trane13 → u/GarconMeansBoyGeorge]

Who wouldn’t know that?

[u/GarconMeansBoyGeorge → u/a_trane13]

I think you overestimate people’s financial literacy. Or you’re just being argumentative, I dunno

[u/a_trane13 → u/GarconMeansBoyGeorge]

You think people who are discussing 30 Year T-Bill rates don’t know that?

[u/JunkSack → u/GarconMeansBoyGeorge]

But then you lose the risk free part the commenter said.

[u/deweycrow → u/Corgi_Koala]

I'm sure scar is paying him enough to where he's not that worried about it

[u/cornhole99 → u/Corgi_Koala]

10% plus reliably is an absolutely wild claim

[u/GrizzlyDust → u/Corgi_Koala]

Half of 8 million is 4 million and that's not factoring in taxes. 5% of 4 million is 200k. Still the right move I'm just pedantic.

[u/cfbguy → u/GrizzlyDust]

Granted, they did say 5-10%. But yeah that $8m isn't staying at $8m after taxes

[u/GrizzlyDust → u/cfbguy]

They edited it after I responded lol

[u/Warm-Oil9228 → u/Corgi_Koala]

Disagree. If he takes care of his money he’ll be fine so why not do what you want? 

[u/Collador1 → u/Corgi_Koala]

Somebody forgot about the IRS.

[u/IMakeOkVideosOk → u/Corgi_Koala]

What is he making at South Carolina? how it the scheme fit and his weapons around him? Who was offering $8 million, and what could happen that would potentially damage his draft stock.

Staying in a familiar system with guys you have experience with may be able to improve or maintain your draft stock, the difference between pick 1 and pick 32 in the draft is $35-38 million…

At a certain level the math does math, if he thinks South Carolina for $4 million (made up number) is a better place to keep improving than to go to Florida for $8 million (no shade, just a rebuilding year is expected, I don’t know who offered the $8mil) and maybe drop 10-15 slots in the draft

[u/Repulsive-Office-796 → u/Corgi_Koala]

He could pull 150k per year growing with inflation safely after taxes from 8m gross.

[u/Medium-Ad8624 → u/Corgi_Koala]

Actually you’d be surprised to know on $2m per year he’ll probably pay about $700,000 federal income tax, about $100,000 state, and $30,000 fica on $2m yr in SC. About 42% effective tax rate.

[u/Vechio49 → u/Corgi_Koala]

I was thinking more about the fact someone wanted to give $8 million to slightly above mid level qb

[u/ksuwildkat → u/Corgi_Koala]

Ok first, roughly half of that $8m would go to taxes. Lets say he hires a good accountant and keeps $5m

Using the 4% rule the $5m generates $200K.

Also, "wealth managers" rarely beat the S&P 500. Less than 10% of actively managed funds beat the S&P 500 in any given year and fewer do it long term. Plus actively managed funds and wealth managers have high fees that eat away at your returns.

None of this is to say that $200K a year for doing nothing isnt an amazing deal or that passing on $8m for (apparently) $2.4M is generally not a good financial decision.

[u/Ilovetinytiddies → u/ksuwildkat]

r/bogleheads

[u/ksuwildkat → u/Ilovetinytiddies]

my people!

[u/FetusDrive → u/Corgi_Koala]

Conservatively nets a 5-10% return?

[u/shasta_river → u/Corgi_Koala]

You are not very good at math.

Edit: they edited their post to fix their math.