New York Yankees legend Alex Rodriguez helped debt-stricken ex-NBA star from going broke
Alex Rodriguez met former NBA great Joe Smith for "Back In The Game," a 2019 television series on CNBC, to learn what it takes to have a net worth of $60 million. After conversing, Alex learns that Joe is facing financial woes and has become debt-stricken. Smith was the Golden State Warriors' first-round choice in the 1995 NBA Draft, and he played for 12 different NBA clubs between 1995 and 2011. Given Rodriguez's exceptional financial literacy, the former MLB legend lends a helping hand to Joe Smith to make him debt-free and save him from going bankrupt.
Joe Smith claimed in the episode that he made $61 million throughout his 16-year NBA career. However, his lavish spending on luxurious houses, expensive cars, poor investments, and divorce made him weak financially. In addition, Smith's bank account was swiftly depleted due to taxes, agency fees, and management expenses.
Smith tells Rodriguez “A lot of people think once you sign that contract, you’re just an automatic millionaire. But it doesn’t work like that. Nobody really explained that and broke that down to me, that Uncle Sam, out of that $3 million, Uncle Sam is going to take probably $1.5 (million) of that. That was just something I had to learn.”
In 2018, Smith was sitting on a debt of a whopping $157,000 and had less than $3,000 in his bank. After listening to Smith's financial struggles, Rodriguez offered to help Joe Smith with practical and actionable financial advice.
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Having a profitable investment portfolio that Alex created post-retirement, no other person could have helped Joe Smith other than him.
Advice Alex Rodriguez gave Joe Smith to strengthen his financial footing
The first thing Rodriguez advised Smith to do was reduce his spending. Spending more results in little or no savings. Alex also advised Smith and his girlfriend Kisha Chavis to downsize from their present Atlanta house. He contrasted Smith's and his girlfriend's earnings to their spending. The couple required around $133,000 to cover their continuing expenses. With a combined total salary of approximately $26,000 for the year, it was evident that they had a massive $107,000 shortfall.
After finding that Smith earns a massive portion of his income from independent basketball coaching, Alex suggested Smith overhaul his coaching firm by charging higher prices. He suggested the creation of a basketball camp, which could potentially raise his incoming money tenfold. Smith was told to keep his spending low after his hike in income.
"I’m always hands on & willing to connect with the athletes." - @ Joe Smith
This episode of "Back In The Game" featuring Alex Rodriguez and Joe Smith was shot in 2018. It is May 2022 now. According to Alex Rodriguez's calculations, Smith and his girlfriend would have been debt-free by 2021 if they adhered to his financial strategies.