Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. Shaquille O'Neal was long known for his dominance on the basketball court, earning $292 million as a player in the NBA. But his legacy off the court is equally remarkable, building on his fortune as a savvy investor while staying in the public eye as an analyst on TNT's "Inside the NBA" broadcast.
His financial journey started with a costly lesson — he often recounts that he blew his first $1 million paycheck in one day on cars and jewelry before learning he had to pay taxes — yet he found motivation to clean up his act. Jeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 — 6 ways to build wealth like a landlord without actually being one JPMorgan sees gold hitting $5,000/oz by Q4 — and savvy investors are protecting their wealth with a tax-advantaged Gold IRA. Get your free guide from Priority Gold The tax breaks in Trump's 'big beautiful bill' expire after 2028.
Here are 4 moves to make before the window closes "I saw horror stories about how five years after professional athletes stop playing, they have nothing," Shaq explained during an interview with social media personality James Dumoulin published Dec. 12. "I didn't want to be part of the horror stories, so I had to teach myself" (1). Being a professional athlete is a glamorous but short-lived career.
According to research by RBC, athletes typically retire before the age of 30 — with an average retirement age of 28 for NBA players (2). Few become superstars with the earning potential and longevity of Shaq — who played 19 seasons in the league — while many others may not acquire his financial discipline. Dumoulin pressed Shaq on how he managed to preserve his vast fortune.
The basketball Hall of Famer didn't hesitate to answer. "I think for those who are not financially literate, learn this word: annuity," he said. An annuity, in simple terms, is a financial product that provides a steady stream of income, often used for retirement or as a tool to safeguard wealth over time.
It can be structured to pay out regularly for a set number of years or even for life, making it a powerful way to ensure financial stability. While Shaq didn't go into detail about his specific investments, his advice underscores the importance of financial literacy and the use of strategies that prioritize long-term security over short-term splurges. For professional athletes like Shaq, whose peak earning years can be short-lived, tools like annuities offer a way to convert substantial but finite earnings into a lasting income stream.
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