Re: How (and Why) Athletes Go Broke
Because if you put your money in a bank and earn 1% to 2% a year, you'll lose spending power due to inflation. Now inflatable rafts to protect your furniture in the event of a flood (which should be insured anyways if you live in a flood zone, and probably are not worth much by the time a flood came around anyways) is a stupid investment. Besides most people don't become millionares b/c they settled, they became millionares by constantly working to grow and expand their business or investments. That person isn't going to stop at 3 million, claim they have enough to live on, and stuff the excess into their matress.
The moral of the story is to be wise with your investments, something pro athletes and many people in general are not very smart about. The biggest difference is that the average person on the street doesn't have an extra 250,000 to start up a record label. Many athletes can scratch that out of their signing bonus w/o making a dent. They're probably excited about it at first, but then they realize the time & effort its going to take to make it work, so they leave it in the hands of the guy they invested with. Unfortunatly the guy that they invested with is often a friend or family member, and put little money into the investment himself. He's grossly unprepared to run such an enterprise, and once things start going downhill, he can't get it out from underwater.
Most athletes are young and dumb, heck aren't we all at 20-25 years of age? All of a sudden they find themselfs flush with cash, and no idea what to do with it. Then the hanger-ons come around. People close to them, family members, friends, people they went to church with growing up. Hey, can you loan me 10,000 to start up this, or 50k for that. Individually its all chump change to them, and its someone they know, someone they can't say no to, or haven't learned to say no to.
To relate it to you Doug, you run a pretty darn solid website, probably get pretty decent readership, far more than the average website. Are you going to stop improving it now because its pretty good? No, my guess is you're going to keep improving, keep trying to expand readership and contacts and make it the best it can be. Same thing w/ investing. If you've got 1 million, you want 2, once you get 2, you want 4, etc, etc, etc.