Alex Rodriguez touts ‘Oops Fund’ for athletes, untouchable until age 45
It’s safe to assume Alex Rodriguez never would need such a thing, but the former MLB superstar believes some mechanism should be put in place to allow athletes to create an “Oops Fund” that is untouchable until they reach the age of 45.
“If you look at the data,” Rodriguez said recently during an appearance on CNBC’s “Squawk Box,” and it “suggests that a lot of our players are going bankrupt way too soon.”
A-Rod is absolutely correct. It’s become an all-too-common occurrence — yet nevertheless an arguably baffling one — to hear stories about athletes who have earned millions upon millions of dollars in their careers to end up penniless.
That’s why Rodriguez is advocating for said “Oops Fund,” which would protect athletes from the irresponsible folly of youth.
“I wish we had a vehicle that athletes early on can put money away first,” Rodriguez added on “Closing Bell” on CNBC. “It would work similarly to a 401(k) plan or individual retirement account (IRA) in that athletes could put away up to 10 percent of their income and let it grow over time.
“… You can’t touch it until you’re 45, because we have to make a bet that they’re going to make better decisions at 45 than they will at 25.”
CNBC lends perspective on Rodriguez’s proposal by noting his “proposed fund is less restrictive than current retirement accounts offered to American employees.”
That said, Rodriguez, who notes that the average professional career ends at age 30, believes an “Oops Fund” would save several athletes from themselves.
“Athletes have to understand that no one is going to do for you as you do for yourself,” Rodriguez told “Closing Bell.” “It’s important to know the numbers, know your spending, know how much you’re making and understand that your career is probably going to last until 30. The question that you have to ask yourself is: What happens from age 31 to 80?”
The notion that multimillionaire athletes should be afforded a “vehicle” that protects them from their own financial irresponsibility may sound ludicrous to those living paycheck to paycheck. But right or wrong, A-Rod nevertheless makes several salient points.