Bobby Bonilla Day
Happy Bobby Bonilla Day!
Every July 1st until 2035, former MLB star Bobby Bonilla receives an annual payment of $1.19 million dollars from the New York Mets. He hasn’t played a game since 2001.
He was owed a $5.9 million buyout in 1999. He and his agent offered a deal. The Mets could defer payments until 2011 with 8% interest, then make 25 annual payments through 2035. In total Bonilla will receive nearly $30 million.
Learn more about Bobby Bonilla Day
One of the reasons the Mets were confident enough to enter the deal was their owner was invested with Bernie Madoff. The double digit returns he was expecting would more than make up for the interest promised to Bonilla. Of course these returns were determined to be fraudulent and therefore never came to fruition.
The late 1990s was an era of booming stock market and higher interest rates, but Bonilla still valued contractually protected income over a lump sum.
Today, we’re in a post-pension world where we use 401(k)s and IRAs to accumulate savings for retirement. Now investors are responsible for:
building their own retirement assets
figuring out how much they need to have saved
determining how much they can spend without running out
Volatile markets, rising interest rates, and high inflation are creating an environment where financial plans and strategies are being tested.
Understanding what Bonilla and his representatives valued can help lead to a more successful overall financial plan.
Where do we go from here?
Since most of us aren’t being offered a buyout by the New York Mets, my partner and Managing Member of Nexus Advisors, Holly Carroccio, recently recorded a video with a few practical things you can do in this current market.
Where do we go from here: https://youtu.be/_PWJniaRtSc
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. CRN202502-1630160
