Why Cash Flow is Better than Big Salaries: An Example from the NFL

money

This is a guest post by Passive Income Dude at www.passiveincomedude.blogspot.com

I don’t have millions of dollars of cash.  In fact, I’ve probably never seen more than a few hundred dollars of cash together at one time.

But I imagine this picture to the left is close to what MILLIONS OF DOLLARS OF CASH looks like.

Pretty cool.  I’d love to somehow receive a giant lump sum of cash all at one point one day and turn it into wads of bills like this.  I’m sure we all would.  But consider what I just read the other day:

NFL

Did anyone miss that?

78% of NFL players go broke within three years of retirement?  That seems ridiculously high.  And almost 16% file for bankruptcy at some point in the future?  How can that be? Again I ask, how can that be?  And here is specifically why I ask the question “how can that be”:

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Caring for a Sick Child or Parent in Retirement

The following is a 3rd party contribution.

About 43 million people provided care to a sick loved one during the last year. For these caregivers, retirement doesn’t mean the end of work—just the end of a steady paycheck. Leaving your job can ease some of the stress of caregiving, but retirement when you’re committed to caring for another person can be frightening. How will you have enough money? How will you know when you have enough? Here are the steps you need to take to care for yourself and your loved one.

Get Clear Medical and Financial Advice Before You Retire

A million dollars might sound like a lot of money, until you consider the costs of health care, in-home aides, and nursing facilities. Don’t set an arbitrary financial goal without first talking to a financial advisor. Equally important is getting competent medical advice from your loved one’s health care provider. It may be difficult to think about, but you need a reasonable assessment of how long your loved one might live, and how his or her needs might change over time. Providing your financial advisor with this information can help you set reasonable goals and steadily budget to meet those goals.

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Option Assignment – IAMGold Corp

IAMGOLD-Logo-Gold-Black-EPS

A closure in my portfolio — my covered call option that I wrote in June 2016 got called away closing my position in IAMGold Corp (IMG.TO). Its a company that I have held in my portfolio for a long time (approx 3 & 1/4 years) – through the depths of the gold & precious metals bear market. Now that the prices have recovered, I wanted to upgrade the quality of my gold mining company holding. IAMGold is a decent company, but has its problems with some management issues. There are better companies out there and I decided to upgrade with the purchase of B2Gold Corp (BTO.TO) last month.

Overall gains (including dividends and options premiums): 28%

Chatter Around the World – 158

Chatter Around the World is a curated weekly update of articles related to economics, investing, dividends and personal finance. In these weekly updates, I also capture my blog updates and news related to my portfolio holdings.

us-healthcare-system

U.S. Healthcare is a Global Outlier, and Not in a Good Way

chinainvest-capital-2300 Image Source: Visual Capitalist

Let’s dive into the links that caught my attention this week.

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CSX Corp Dividend Stock Analysis

CSX

CSX Corp. (CSX) is the third largest publicly traded railroad company in North America. The company commands an impressive 21,000 miles of rail network. The following system map image demonstrates the scale and reach of CSX Corp. CSX Corp operates and services the east coast of the US and directly competes with Norfolk Southern (NSC). CSX Corp., however, has an advantage where it provides service to Florida, which NSC doesn’t.

CSX-SystemMap

The Railroad Industry

Railroads are considered a wide moat industry, as it entails immense capital requirements and new entrants in the industry are almost unheard of. Railroads are the pulse of the economy. Whether transporting crude, lumber, merchandise, agricultural or industrial products, railroads are what keeps the economy moving. Railroads are often closely observed by economists and analysts to get a sense of how the overall economy is doing. It is also considered a leading indicator for any recessions or slowdowns.

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