He'll get three years. Roughly figuring, he takes home 12M. Agents and business managers take 2 of that. Say, he's somewhat frugal and spends a million of that to live for those three years. That's 9M in an investment fund. Set it up in a no-tax state like Nevada, and you're paying nothing except capital gains tax on any increases in the portfolio. Treat it like an endowment and disburse 4% a year and then hope that the fund's annual return is at least 4% + the inflation rate. IF you can average that, you have an annual salary of 360K taxed at capital gains (roughly clears 25K/month) with no state income tax, and you're not touching the principal. And of course that's if he decides to retire right then and there instead of going back to being a 1M/year coordinator.
In other words, he's set for life if he doesn't decide to live like an NBA player. It's totally the right call.
He’s 38 years old. No matter how this plays out, it’s not like he won’t be coaching at a high level for the next few decades. These guys recycle better than the Chinese, that’s for certain.
Also, don’t overthink the investing part. Live wherever the hell you want and have your investable assets professionally managed for tax efficiency. Fidelity, for example, will typically beat the benchmarks and still show you a significant loss on paper. He should have enough to qualify for a private wealth manager with estate attorneys for insanely negligible fees as well.
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