Re: How (and Why) Athletes Go Broke
In a bank, you're only secure up to 250,000, or whatever they raised it to recently. Not near as much security there as there is in a well diversified investment plan. Coke is a great american company today, it was yesterday and it will be tomorrow. If you invested 5% of your fortune in Coke, its not going to just disappear tomorrow. It may go down, but it won't just dissapear. Now take the remaining 95% and invest it in McDonalds, real estate, energy, drug companies, bonds, etc... and you've got a fairly solid diversified account that can sustain you for many years, much better than the 1-2% you get in a bank that is going to continually lose spending power due to inflation.
also, like I said earlier, most people don't become millionares by being complaciant w/ what they have, they strive for something better.