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Probably a little under half. 35% to the feds, 15% state, 10% agent. Complete SWAG at those numbers. #NotAnAccountant
15% to the state? surely not. I wonder how that works. He was drafted by Texas which doesn't have state taxes. He probably lives in MS or AL which is no where near 15%. Are agents really taking 10? I would think 6% max. Also, his agent didn't so such a great job as he took 787K below slot.
no offense, but it appears you don't have a clue about any of the questions I was asking, lol.
If I'm Foscue's dad. I tell him to take 1 million, open up an online brokerage account. Invest the million in VOO. When Foscue's 51, he will more than likely have at least 7.6 million to live off for the rest of his life.
VOO is basically free. 0.03 fee. And yes, very tax efficient since you want have to pay capital gains distributions like you would with a mutual fund. Also, VOO is something you can hold for 30 years unlike a mutual fund which can have underperformance, manager changes, etc.
In a Roth, I would look to be more aggressive since the main advantage of a Roth is tax-free growth + tax free distributions. Though very few people, managers can beat the Index over time. So even in the Roth VOO would be a good choice.
Not for your core holding. Land is not going to produce anything. He's 21, he might not buy the right land. You have to pay taxes on Land and maintenance costs. Land is not liquid. Need to buy a home and pay it off before you buy land. If Foscue makes it to MLB and gets another contract then sure, maybe he can add land.