Football and Finance: How Does Compound Interest Really Work? Can Nick Chubb and His Cleveland Browns Teammates Really Get 10% Interest at a Bank?
Dude’s note: My day job, according to my 3-year old daughter is “Talking about money.” So here’s some of that.
Carl Nassib, a defensive end for the Cleveland Browns, had some great financial advice on last week’s episode of Hard Knocks. Nassib advised his teammates on the defensive side of the ball to take their money, put it in a bank and let it collect 10% a year. But is that realistic?
If Nassib is right in his methodology and calculations, these guys are clearly set for life. Former Georgia running back Nick Chubb (for example) could just take $1 million of his $3.449 million signing bonus and let it sit in a bank. In 42 years he’ll have $64 million. Or will he?
Alas, it’s a litttttttle bit trickier than that. Nonetheless, I applaud Nassib for his commitment to saving. But that’s only half the battle. I guess you don’t learn that kind of stuff at lowly Big 10 academic institutions like Penn State.
That’s all I got/