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Shaq says annuities helped him preserve his NBA fortune
Shaquille O'Neal linked his off-court wealth strategy to learning to manage money after blowing his first $1 million paycheck on cars and jewelry.
Shaquille O'Neal said an annuity was the key concept he learned to help preserve his fortune after his NBA playing days, discussing the idea in an interview published on social media. Yahoo Finance reports that the basketball Hall of Famer emphasized the importance of financial literacy for athletes who may face money problems after retirement.
O'Neal described a costly early lesson, saying he blew his first $1 million paycheck in one day on cars and jewelry before realizing he still had to pay taxes. He said this experience motivated him to change his approach.
He also noted that for many athletes, careers are short and retirement can come early, citing research by RBC that athletes typically retire before age 30, with an average retirement age of 28 for NBA players.
In explaining annuities, O'Neal said they can be structured to provide a steady stream of income, potentially over a set term or for life, to support long-term security, though he did not provide details on the specific investments he used.