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Aclone said:
www.si.com

Why Paying David Montgomery Is No Simple Matter

Analysis: The Bears face a contract year with David Montgomery and getting him an extension at the estimated market price seems to run contrary to the trends working within the NFL now against long-term deals for running backs.
www.si.com www.si.com
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I think this is a very well written article. Like it or not. Reality of the NFL. There is nobody I want to get $ more than David. He should get very good money, but I doubt it is double digit millions. A few more years at 5-9 million should set him up for life.
 
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Cyclad said:
I think this is a very well written article. Like it or not. Reality of the NFL. There is nobody I want to get $ more than David. He should get very good money, but I doubt it is double digit millions. A few more years at 5-9 million should set him up for life.
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I could never understand that mindset. Anyone getting even one lump sum 2 million should be set for life. Very conservative investment compounded easily makes that happen.
 
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Cloneon said:
I could never understand that mindset. Anyone getting even one lump sum 2 million should be set for life. Very conservative investment compounded easily makes that happen.
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At that level, take home is a little over 1MM, and being in the NFL you can expect him to live a little better and probably get a car and house. So it truly does take the second or third year to at least get something that gets you set. Hopefully he can pop in that 5-8 MM range for 3-5 years. Thinking 8 years is when the pension starts to be decent.
 
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BCClone said:
At that level, take home is a little over 1MM, and being in the NFL you can expect him to live a little better and probably get a car and house. So it truly does take the second or third year to at least get something that gets you set. Hopefully he can pop in that 5-8 MM range for 3-5 years. Thinking 8 years is when the pension starts to be decent.
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Bigger paydays for RBs is vital since their careers iirc are the shortest on average.
 
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ISUCubswin said:
Not a bears fan. But can anyone tell me the last running back that was a good running back for more than 5 years? Zeke regressed and he’s just 26
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Adrian Peterson comes to mind. Derrick Henry is currently just at or past 5 years I think.

I think there's others depending on what you define as 'good' but it's generally a short window.
 
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farminclone said:
I’d love to see your math on this.
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This is just a conservative example. Of course, inflation plays a big role in this. But even with Burger King income you offset that. And God forbid if you find a menial job which has insurance, you're set. Keep in mind 6% is conservative. Also, note I built in 60000 living costs. The key is 'compounded'.

Disclaimer: The premise being an individual's definition of 'set-for-life'. If you're the type of person who has to have that million dollar home, 2 luxury cars never to exceed 10 years old, the country club membership, etc etc, this would not fit your 'set for life' definition. But, for the vast majority of Americans this IS set for life.

Starting Amount2000000
After20 years
Return Rate6 %
Compound annually
Additional Contribution-5000 / mth
Contribute at the end
of each month​
​

Results​

End Balance
$4,147,077.78​
Starting Amount
$2,000,000.00​
Total Contributions
$-1,200,000.00​
Total Interest
$3,347,077.78​
Investment Compounded Calculator
 
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Cloneon said:
This is just a conservative example. Of course, inflation plays a big role in this. But even with Burger King income you offset that. And God forbid if you find a menial job which has insurance, you're set. Keep in mind 6% is conservative. Also, note I built in 60000 living costs. The key is 'compounded'.

Disclaimer: The premise being an individual's definition of 'set-for-life'. If you're the type of person who has to have that million dollar home, 2 luxury cars never to exceed 10 years old, the country club membership, etc etc, this would not fit your 'set for life' definition. But, for the vast majority of Americans this IS set for life.

Starting Amount2000000
After20 years
Return Rate6 %
Compound annually
Additional Contribution-5000 / mth
Contribute at the end
of each month​
​

Results​

End Balance
$4,147,077.78​
Starting Amount
$2,000,000.00​
Total Contributions
$-1,200,000.00​
Total Interest
$3,347,077.78​
Investment Compounded Calculator
Click to expand...

No income tax on the lump sum? No income tax on the annual interest income? The $2M turns into $1M pretty quick right off the bat. $1M at a 6% rate (with no income tax allocation) and a $5,000/mo withdrawal rate means you run out of money between 62 and 63 years. Doesn't sound like "set for life" to me I guess.
 
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farminclone said:
No income tax on the lump sum? No income tax on the annual interest income? The $2M turns into $1M pretty quick right off the bat. $1M at a 6% rate (with no income tax allocation) and a $5,000/mo withdrawal rate means you run out of money between 62 and 63 years. Doesn't sound like "set for life" to me I guess.
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OP said 3 mil on top of his existing contract, so yes 45% tax. Are you not forgetting compounded growth? And just for arguments sake even with your numbers that'd put him at 88. Even Rockefeller died broke. That and no contract would dump the whole lump sum, so he'd be able to defer taxes to some extent and write off any losses. So, yes with even conservative investments he'd still be set for life. Let's just put it this way, a savvy accountant would not only exceed 6%, but would defer taxes and write off expenses. So, imo, in the end there are many more factors in retaining your wealth (if you're smart) than blowing it.
 
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Cloneon said:
I could never understand that mindset. Anyone getting even one lump sum 2 million should be set for life. Very conservative investment compounded easily makes that happen.
Click to expand...
Pro athletes are not just "anyone" ... a lot of them pee their $ away. I am not saying David is like that. I hope he gets paid some big bucks.
 
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ISUCubswin said:
Not a bears fan. But can anyone tell me the last running back that was a good running back for more than 5 years? Zeke regressed and he’s just 26
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Dalvin Cook is pretty good still. Not sure how old he is.
 
On a side note, would love to see Lazard get out of GB and really show his skills. Rodgers doesn't trust anyone other than Adams and Jones. Allen is lucky to get 2 or 3 targets a game.
 
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RBs have a short shelf life, teams aren't willing to commit to big long term contracts anymore.

Sucks, but I wouldn't want my team to have a ton of salary cap % spent on an RB these days.
 
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