Browsing my old copies of Bloomberg Businessweek that had been piling up before the holiday break, I came across an interesting article by Paul Wachter entitled "Why Ballers Go Bust" (here's the online version). It centered on a question that I often wondered myself...how much is enough money to set you free...free to do what you want, work on what you want, break out of the hierarchy, tell people to kiss your butt? Well apparently, $100M+ is not enough...it seems that if you don't have what psychologists call self-regulatory capacity and if you don't have experience with the devastating curse of debt, then even hundreds of millions of dollars can't ensure that you will stay out of lawsuits, bankruptcy, and moving back in with your parents. Scottie Pippen earned and lost $120M, Evander Holyfield blew $200M..., and it wasn't just African American athletes who were susceptible. Lenny Dykstra "sold his World Series ring to pay creditors" and Mark Brunell lost millions in the real estate crash. Sports Illustrated puts the number at 60% of NBA players who are in financial problems 5 years after they retire.
It is surprising to me that millions of dollars are not enough to live independently...do you know how much 5% interest on $1M earns annually, and that doesn't even begin to add in the benefit of compounding...but I guess the adage of "it's all relative" and "money can't buy you love" may be true after all!
I dream of retirement, when my time will truly be my own and money will cease to be a concern but maybe the dream is a mirage...but I haven't given up looking for that ideal number of dollars that will buy me my dream day (e.g., wake up, write in my pajamas cup of java in hand, take my kids skiing, skating, traveling, dinner (preferably out) with my husband, sleep), everyday for the rest of my life...
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