Bobby Bonilla Has Company in Retirement
As you may be aware, July 1 is Bobby Bonilla Day. This is the day Bobby Bonilla receives a $1.19 million payment from the New York Mets. This is his 12th of 25 payments from a deal in which he was owed a $5.9 million lump sum. It turns out that Bonilla isn’t the only savvy former major leaguer. There are 13 retired players that currently receive compensation from their former teams. The former slugger turned strikeout artist Chris Davis, tops the list. He’ll receive $56 million from now until 2037. He’s the highest-paid player on the Orioles, and he hasn’t played a game since 2021.
Davis’s appearance on this list is more a function of Davis’s decline and early retirement due to injuries. His early retirement highlighted his deferred payments. This year he gets $14 million but it will decrease to Bonilla ranges in a few years. There is something these types of deals can inform us about our own preferences in retirement.
There are two sets of preferences we’re trying to balance in our own retirement strategy. Bonilla valued commitment and safety-first. It’s why he preferred to forgo the nearly $6 million lump-sum in favor of the contractually guaranteed payment. It’s our job as advisors to help match your preferences to your strategy. Where preference and strategy meet is where enjoyment in retirement is at its fullest potential.
Andrew Eppes, RICP®
Andrew Eppes is a registered representative of and offers securities and investment advisory services through MML Investors Services, LLC. Member SIPC. www.SIPC.org. Nexus Advisors, LLC is not a subsidiary or affiliate of MML Investors Services, LLC, or its affiliated companies. 14241 Dallas Parkway Suite 1200 Dallas, TX 75254 972-348-6300. The idea of retirement means different things to different people. CRN202606-456917
