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NBA icon\u00a0Shaquille O\u2019Neal\u00a0has shed light on the financial difficulties that many athletes face post-retirement. O\u2019Neal points to the opulent lifestyle that players grow accustomed to during their active years as a significant contributing factor.<\/p>\n
What Happened: O\u2019Neal highlighted the challenges athletes face in adapting to life after their sports careers. Not only do they grapple with the absence of the game that formed their identities, but they also struggle with the lavish\u00a0lifestyle that came with it.<\/p>\n
The steady flow of income during their active years often leads to unchecked spending habits.<\/p>\n
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However, post-retirement, this unchecked spending often leads to financial issues. \u201cSometimes\u00a0you just get so much\u00a0money that you forget. I always tell them, \u2018Don\u2019t think about what\u2019s\u00a0going on now, think about\u00a0what has to go on\u00a0in the future,’\u201d O\u2019Neal said.<\/p>\n
\u201cIf you got a five-year deal worth $100 million and make $20 million per year, you spend 20 in the first year and be like, \u2018You know what? I got another 20 coming.’ That’s how guys are thinking,\u201d he shared.<\/p>\n
It\u2019s a startling fact that 60% of players face bankruptcy within a decade of retiring. This is often attributed to poor spending habits, ill-advised investments, or a complete lack of investments. Other contributing factors include falling prey to fraud, dubious investments, and financial exploitation by friends, family, and advisors.<\/p>\n
See Also: Americans With a Financial Plan Can 4X Their Wealth \u2014 Get Your Personalized Plan from a CFP Pro<\/a><\/p>\n O\u2019Neal underscored the crucial role of financial literacy, guidance, and awareness in helping athletes safeguard and grow their wealth. The NBA legend\u2019s insights highlight a systemic issue that extends beyond the basketball court and into the realm of financial education and management.<\/p>\n His comments serve as a stark reminder of the importance of long-term financial planning, not just for athletes, but for anyone earning a substantial income.<\/p>\n Read Next:<\/p>\n