NBA player says he's broke after earning $116 million

 In each and every one of the blogs I post I offer my opinion about whatever topic I happened to write about that particular day. I also make sure to be as truthful as possible. These things I write about aren't made up, they're very real and based on actual events. Obviously, I research before I began offering my opinions. The research I discovered for my latest report shocked me because I honestly had no idea things were this bad in the NBA.

As a spectator all we hear and see in the news is how much money these guys are making in these contracts. Hundreds of millions of dollars, eventually, players will be making $100 million per year! The league minimum for this upcoming season is almost $1.3 million. Only Major League Baseball pays their players more and both the MLB and the NBA have guaranteed contracts and an excellent player's union. 

To their credit, the NBA does offer financial literacy programs to their players. The Players Association even teamed up with Personal Capital to provide players with retirement planners, and investment checkups, and even a cash flow analyzer.

Unfortunately, not all players are utilizing these services. According to reports, 60% of NBA players go broke within five years of retiring. Other reports suggest the actual number is closer to 65% - 80%! So on average, 7 out of 10 players are broke within 5 years. That is incredibly irresponsible and sad.

The latest victim is former NBA small forward Trevor Ariza. Ariza won the 2009 NBA Championship with the Lakers. During his 18 seasons he's earned more than $116 million. This is all coming out because he just got a divorce from Bree Anderson and he's trying to lower his $14,000 per month child support to her. He also pays another $10,000 per month for other child support payments.

Since Ariza retired, he's been unemployed with no monthly income. This is despite $37,000 in reported monthly expenses. He is probably accustomed to a certain lifestyle now as are his children. Dude, the expenses don't stop they just keep coming and to have no monthly income is insane. Didn't anyone ever tell this guy to never live off the principle, you're supposed to live off the interest, of course pay tax on it first.

Ariza said the situation changed after he became the primary caregiver of his son Tristan with Bree Anderson. "I've taken full responsibility-meals, clothes, school, everything. Bree rarely picks him up or shows up on her days."

Ariza also said that in the divorce Bree received a luxury car, real estate, and half of his retirement accounts. "I've been exploring deals, trying everything to create income. Nothing stable has come through. Things changed since we finalized this."

Exploring deals? Trying to generate income? Dude might want to mix a financial planner in with his boys. He should've put the money in Government Bonds and securities. It won't grow as fast but it's not as risky as the stock market. Here's an idea, take whatever money you have left and put it into a CD ladder. That's what I would do. Have some mature in 1 year, some in 2 years, some in 3 years, etc. The interest should take care of you the rest of your life as long as you pay tax on it each year...that's the catch. 

Ariza hasn't paid taxes since 2022 so my advice would be to try to negotiate down your tax burden. It doesn't go away you can ask Nicholas Cage and Wesley Snipes. A lot of people were suggesting the stock market but you really have to know what you're doing because it's like a magic show...your money's here and now it isn't. You can make a lot and lose a lot which is why shows like American Greed exist. No word yet on if the court will revise the child support but they probably will since the order is based off of current income and assets.