Kenny Mayne, Tyler Lockett out on the water

Tyler Lockett says Marshawn Lynch helped him with his 401(k)

As you would expect, more silly than educational.

http://espn.go.com/video/clip?id=espn:13929203

Go Hawks,
BillA

That's kind of a weird comment. The most he can contribute is $18,000, and the NFL will provide matching at 2:1 up to $28,000. It's not that useful for someone making over $800,000 trying to save money in a way that makes sense. 5% total employee/employer contribution over a 30 year career wouldn't be that great, but it's almost nothing for a four to 12 year career. If Lockett only makes it through his rookie contract, he will have saved something like $185,000 total in contributions. That's not much, even if it compounds for a couple decades in a managed fund with a good return rate.

Hopefully he's putting way more away in some tax-advantaged accounts as well that aren't 401(k). He certainly should know the deal since he's from a NFL player family.

bmorepunk":1keu92fx said:

That's kind of a weird comment. The most he can contribute is $18,000, and the NFL will provide matching at 2:1 up to $28,000. It's not that useful for someone making over $800,000 trying to save money in a way that makes sense. 5% total employee/employer contribution over a 30 year career wouldn't be that great, but it's almost nothing for a four to 12 year career. If Lockett only makes it through his rookie contract, he will have saved something like $185,000 total in contributions. That's not much, even if it compounds for a couple decades in a managed fund with a good return rate.

Hopefully he's putting way more away in some tax-advantaged accounts as well that aren't 401(k). He certainly should know the deal since he's from a NFL player family.

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Considering Marshawn gets his annuity paid in Skittles from Taco's EBBB empire, it can't be sage advice at all.

While a 401k is less significant an investment vehicle for an NFL player, it is still a smart move given that NFL often means "not for long", and Tyler is just one catastrophic injury away from having to rely on his education to make a living.

An investment at 10% will double every 7.2 years, over 21.6 years the $185K would become $1,480,000. Not an insignificant dollar amount for most of us. Reference the "rule of 72's" for computing compound interest.

Me when people start talking about investing:

Nah man Rule of 72 rocks the casbah. It's not too hard to understand and it totally rocks your world once you see how it can apply to just about anything, not just investments (like a bank vs a cd) but anything else that works on a percentage: loans, debt, rate of inflation, etc.

My first encounter with rule of 72 (though I didn't know what it was called) was behind this math question which I think is a popular one sprung on people in middle school:

Of the below, which comes out to the higher dollar amount

1) Someone give you $1000 on day 1, $2000 on day 2, $3000 on day 3, etc.. for 30 days?

2) Someone give you a penny ($.01) on day 1, and then double it each day. $.02 on day 2, $.04 on day 3, etc.. for 30 days?

And so not to totally hijack this thread, Tyler Lockett's awesomeness will increase each week by 2%

Siouxhawk":leda4wfk said:

bmorepunk":leda4wfk said:

That's kind of a weird comment. The most he can contribute is $18,000, and the NFL will provide matching at 2:1 up to $28,000. It's not that useful for someone making over $800,000 trying to save money in a way that makes sense. 5% total employee/employer contribution over a 30 year career wouldn't be that great, but it's almost nothing for a four to 12 year career. If Lockett only makes it through his rookie contract, he will have saved something like $185,000 total in contributions. That's not much, even if it compounds for a couple decades in a managed fund with a good return rate.

Hopefully he's putting way more away in some tax-advantaged accounts as well that aren't 401(k). He certainly should know the deal since he's from a NFL player family.

Click to expand...

Considering Marshawn gets his annuity paid in Skittles from Taco's EBBB empire, it can't be sage advice at all.

Click to expand...

To be fair though, everyone at Taco Corp. gets paid in Skittles.

bmorepunk":152fs3su said:

That's kind of a weird comment. The most he can contribute is $18,000, and the NFL will provide matching at 2:1 up to $28,000. It's not that useful for someone making over $800,000 trying to save money in a way that makes sense. 5% total employee/employer contribution over a 30 year career wouldn't be that great, but it's almost nothing for a four to 12 year career. If Lockett only makes it through his rookie contract, he will have saved something like $185,000 total in contributions. That's not much, even if it compounds for a couple decades in a managed fund with a good return rate.

Hopefully he's putting way more away in some tax-advantaged accounts as well that aren't 401(k). He certainly should know the deal since he's from a NFL player family.

Click to expand...

A 401k is only one tool, and it's a smart one if the employers are matching it. You lower your tax exposure, and you're getting money added to it from another source, plus the compound interest. So yea, with the larger earners, it makes less sense than others, but it's still a viable tool. I worked for a company in So Cal, and the owners both were millionaires and still contributed the max to their 401k's. Then they got money from their own business on top of that, lowering both their personal tax exposure (to a lesser degree) but also their business's.

Couple it with a SEP or other personal retirement, throw in a ROTH and it all really starts to add up.

Zebulon Dak":pfq6dl9h said:

Me when people start talking about investing:

Click to expand...

For a smart guy like you that's dumb.

It's never too early to think about your future.

Zebulon Dak":2v203p4y said:

Me when people start talking about investing:

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LOL! Same here. I just might need to PM some of these .net money gurus.

Hawks46":21sqi1pr said:

A 401k is only one tool, and it's a smart one if the employers are matching it. You lower your tax exposure, and you're getting money added to it from another source, plus the compound interest. So yea, with the larger earners, it makes less sense than others, but it's still a viable tool. I worked for a company in So Cal, and the owners both were millionaires and still contributed the max to their 401k's. Then they got money from their own business on top of that, lowering both their personal tax exposure (to a lesser degree) but also their business's.

Couple it with a SEP or other personal retirement, throw in a ROTH and it all really starts to add up.

Click to expand...

Good points. Agree agree.

Anytime you have a tax-free (or tax-advantaged) way to use your money it's hard not to take advantage. I mean heck how many folks drive to Oregon to go shopping? How many people love Seattle for no state income tax (rude awakening when I moved to So.Cal)

Add in that it's an investment tool, the market tends to average 8 to 12 percent over the long run (previous history does not guarantee future performance yadda yadda)

Add in the big one: companies matching... MATCHING. Meaning "Hey Rule of 72, for that first double, I say nay nay to you I want it now and *POOF* here it is!"

It is very very difficult to find a reason not to take advantage of something like this. Even if it's just for a few years of employment

Good God, not math!