quote:quote:
Originally posted by Tiger Paw Mom:
Vance,
Thanks! That was a good excercise for you when you need to discuss bonus round money with a prospect!
As stated there are two sides to the coin, and should NOT be about whether you get a mil or 5K but the desire to begin your pro career earlier. JMO.
The overall post was very good. But the line I retained is really the heart of the discussion.
$1,000,000 wisely handled after taxes and agent commissions would be around $600,000 to the bank.
Lets say the boy doesn't need the Corvette right away, but a nicer place to live in MILB and better eats.
Todays rates of return should garner 8%.
So decide on this:
$600,000 in the bank earns a pre-tax amount of $48,000 annually. Lets leave tax-deferred vehicles out of this.
Do you want the above plus the start of your pro career? Or do you want 3 years of the college experience, and let the draft chips fall when the time comes?
Toss in the MLB scholarship plan option, and it gets tougher. Those boys who try pro and never excercize the college scholarship option probably meant to never use it anyway?
Assume the boys gets bounced from pro ball after 4 years. The money in the bank can be well over $800,000. Go to school for 4 years, free of charge, let the dough sit longer, and you got a kid graduating from college with $1,000,000 in the bank.
Do you want the college experience?
Do you want, or need the college baseball experience?
I think the MONEY/INVESTMENT is the basis, the rule, and not the exception!!
Very good post Slugger.