New York Yankees’ Mark Teixeira bats during a game against the Baltimore Orioles at Yankee Stadium in New York, May 9, 2015.
Although his final year’s salary with the Yankees banked him just over $23 million, it’s a given that most professional athlete earnings are compressed into just a handful of years. At last look, an estimated 60% of former NBA players go broke within five years of departing the league. And by no means are these financial problems confined to the NBA. A reported 78% of former NFL players have gone bankrupt or under financial stress just two years after retirement. Some of the reasons: financial illiteracy, financial schemes and scams, dishonest or unqualified advisors and reckless spending.
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With this in mind, Teixeira knew he needed to think long term.
“There’s things that you want and there’s things that you need, and you have to kind of figure out, OK, how much money do I have in the bank right now? What do I need to live off of? What’s the extra things that I like? What I learned early is there’s a bucket for my nest egg that I’ve put away and I never have to worry about again. Then there’s the bucket for opportunities.”
To set himself up after baseball, Teixeira pursued his second love: real estate. “I invested in some companies, I started a real estate company, invested in some property, and that’s paid huge dividends,” he said.