this post was submitted on 11 Feb 2024
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Unpopular Opinion

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No offense or judgement meant to anyone if that's your thing (to each their own). That's just how I see pretty much all professional sports - the super bowl is just the poster child for it.

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[–] Jimmyeatsausage 2 points 9 months ago (1 children)

You have to sell 140k worth of stock each year to get that much. That means that each year, you have fewer stock, so you see a diminishing return on that.

[–] [email protected] 1 points 9 months ago* (last edited 9 months ago) (1 children)

What? Maybe I am missing something, but I don't think so.

You start with 2 million. You make 140,000 profit and have 2,140,000 total. You sell 140,000. You still have 2 million to make another 140k next year.

You are just using your profit immediately and keeping your portfolio the same as your initial investment. It doesn't diminish, it just doesn't grow because you are using the profits for expenses.

[–] Jimmyeatsausage 2 points 9 months ago (1 children)

You have the same amount of money invested in the market, yes... but you have fewer shares. If you have 100 shares and the stock price goes up $5 per share, you made $500. Then, you sell 10 shares to access that money, and now, if the stock goes up $5 again, you only make $450. If you want to keep your income the same, you're gonna decrease your share amount each year...if you wanna maintain your actual spending power, it's gonna go down even faster.

[–] [email protected] 1 points 9 months ago

I see what you are saying. I'm not saying that investing all of your money in index funds and then selling your profits every year is by any means the smartest way to invest money. It was more just to illustrate how easy it is to make profit with the kind of money that NFL players are given, even if their careers are short.