1 of 23

How to Invest Like LeBron James

FBLA NLC 2015 Workshop

2 of 23

LeBron’s Net Worth

2015 Earnings: $65.6M

  • #6 World’s Highest-Paid Athlete (Forbes)
  • $21.6M in Salary/Winnings:
  • $44M in Endorsements

3 of 23

The Decision

Not

THIS “Decision”

THIS “Decision”!

4 of 23

The Decision

With almost $65M in earnings this year alone, LeBron has some cash to invest.

BUT…

What should he invest in?

Well, here are his options:

5 of 23

Option A

Start a restaurant!

6 of 23

Option B

Create a sports agency!

7 of 23

Option C

Start a clothing line!

8 of 23

Option D

Invest in the stock market!

9 of 23

What Should LeBron Do?

(A)

Restaurant

(B)

Sports

Agency

(C) Clothing Line

(D) Stock Market

10 of 23

What Should LeBron Do?

A - Restaurant

B - Sports Agency

C - Clothing Line

D - Stock Market

11 of 23

Make a Pitch

Convince us:

Why should LeBron invest in

A - Restaurant

B - Sports Agency

C - Clothing Line

D - Stock Market?

12 of 23

What Should LeBron Do?

A - Restaurant

B - Sports Agency

C - Clothing Line

D - Invest

13 of 23

Warren’s Advice

14 of 23

Start Early

Kobe Bryant

LeBron James

Anthony Davis

Age

37

31

22

Years to 65

28

34

43

Salary

$23.5 M

$21.57 M

$7.071 M

Monthly Contribution of 15% of Salary

$293,750

$269,625

$88,388

15 of 23

Start Early

Total Contributions:

Kobe: $98.7 M

LeBron: $110 M

Anthony: $45.6 M

16 of 23

Own a Piece of America

100% Bonds

100% Stocks

Bonds:

  • Low risk, low reward
  • Fixed rate of return

Stocks:

  • High risk, high reward
  • Price fluctuates

17 of 23

Own a Piece of America

Historical Returns by Asset Allocation (1926 - 2014)

18 of 23

Own a Piece of America

19 of 23

Own a Piece of America

Rule of Thumb ~ Asset Allocation

Age = Bonds

→ Bonds Stocks ←

100 - Age = Stocks

20 of 23

Contribute Monthly

Monthly Salary

Taxes & Deductions

Expenses

10 - 15% Investment

10 - 15% Savings

21 of 23

Contribute Monthly

Marketing Assistant

Registered Nurse

Chemical Engineer

Starting Salary

(average)

$33,000

$52,000

$67,000

Monthly Contribution (10% of salary)

$275

$433

$558

$ at Retirement

(22 - 65)

$818,000

$1,287,000

$1,659,000

What if you’re not in the NBA?

22 of 23

Your Next Steps

  • Set up an online brokerage account
  • Automate your savings and investments every month
  • Reassess only as your circumstances change, not every time the market changes

23 of 23

Our Website