It has been a sad turn of events for Allen Iverson over the past few years.
There have been reports that he is broke and in debt because of jewelry purchases, and his NBA career is most likely done. He wants to play, but it takes two to tango.
It's really tough to step back and think about what happened to one of the biggest stars that ever played in the city of Philadelphia – in any sport. It all came crumbling down so quickly.
There is some positive news, though. According to Peter Vecsey of The New York Post, Iverson may not be broke after all:
A person with a firm grip on the situation informs me Iverson has an account worth $32 million, a principal he is prohibited from touching until 55. In the meantime, it feeds him $1 million annually.
At 45, Iverson is eligible to start drawing on an NBA pension that maxes out at 10 years of active duty, or take whatever’s there as lump sum. He will be entitled roughly to $8,000 per month ($800 per x 10).
If at all possible, Iverson will issue a restraining order against himself until he’s 62 or so. At that time, I’m told, his lump sum will be between $1.5 million and $1.8 million, or he can elect to take monthly checks of approximately $14,000 per.
$1 million annually?! Jason Babin would sign AI up for government assistance.
Jokes.
A financial advisor deserves a huge pat on the back for this one.
11 Responses
Good for AI. We need to bring him back.
him & the crew loved nudie bars too much
1 million per year isn’t enough for him and his crew and ho’s
Where’s all the money from his CDs/records/albums ?
He’s probably already spent the 32mil in IOUs
The crew always has AI best interests at heart
I am a financial adviser/analyst, and as a pro in the field, I tend to look at this a little differently than those outside of the business.
AI (conservatively) made about $200 million since being drafted by the Sixers, in both NBA salary and endorsements. He has $32 million left to speak of, or 16% of his career earnings.
This would be like someone who averaged $50k per year from age 22 to 65 having $344k in the bank when all is said and done. Sure, its not chump change, but its not really an “F.U.” amount of retirement money either given that persons probable lifestyle. But at least this person will only live for 30 years or so in retirement.
In AI’s case, $32 million sounds like a lot of money, and it is, but also you have to consider speed with which A.I. has pissed through the first $168 million in such a short amount of time. His life style will have to change drastically in order to make whats left last, and I do not see AI as the type who will start shopping the clearance rack at City Blue or buying his jewelry from Kohls.
My gut tells me that he will pull a Ginger Rothstein on himself, get to the money somehow and then blow it. He was drafted in 1996, 16 years ago. Based on the unaccounted for $168 million, I feel safe saying that AI is used to living a $10 million per year life style. In order to make that $32 million last, he has to get used to spending more like $1.5 million per year. In realistic money terms, that guy who made $50,000, now has to find a way to live off of $7,500 per year.
Given the bleak stats here, I find it hard to breath a sigh of relief for AI. He is still screwed six ways to Tuesday.
In 10 years you can copy and paste this story, subbing out the words ‘Allen Iverson’ for ‘DeSean Jackson’
He loved treating himself to wings
“In order to make that $32 million last, he has to get used to spending more like $1.5 million per year. In realistic money terms, that guy who made $50,000, now has to find a way to live off of $7,500 per year.”
I get what you’re trying to say, but it doesn’t make any sense. The guy making 1.5 million per year isn’t going to bed hungry most nights. If Iverson goes crazy with it and spends 95%, He’d have 75,000 left over. That’s 375 for the poverty stricken fellow. It’s like saying a man moving from a mansion to a townhouse is the same as a man moving from a studio apartment to a broom closet.
That he spends money like a fucking retard goes without saying. So is the fact that he has fantastic potential to lose the rest of his basketball money. However, AI on his worst day can make enough to get by with appearances and local endorsements. He may not live the dream, but financially, compared to the vast, vast majority of the world, he’ll be just fine.
Who is the financial advisor who saved Allen Iverson? I’d love to hire him.
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