WEBVTT NOTE This file was generated by Descript 00:00:18.967 --> 00:00:20.497 Riccardo Stewart: Hey, I wanna welcome you guys back to another 00:00:20.497 --> 00:00:23.497 episode of the A-W-M-N-F-L Podcast. 00:00:23.497 --> 00:00:26.587 My name is Ricardo Stewart, and I'm your host and I'm joined 00:00:26.587 --> 00:00:28.027 with my friends Jeff Locke. 00:00:28.057 --> 00:00:30.307 Zach Miller, and Sam Acho. 00:00:30.667 --> 00:00:31.507 Fellas one. 00:00:31.507 --> 00:00:33.307 Good to be back on the podcast. 00:00:33.307 --> 00:00:33.637 Okay. 00:00:33.637 --> 00:00:34.477 It's been a couple weeks. 00:00:34.792 --> 00:00:37.912 And, um, just catching up with a lot of things in the NFL and 00:00:37.912 --> 00:00:40.912 what's happening and you know what, just keeping with the times. 00:00:41.122 --> 00:00:46.132 What's happening now is that pretty soon here, today is the last day of September. 00:00:46.132 --> 00:00:51.202 As we record this October 15th is coming up and our NFL athletes 00:00:51.202 --> 00:00:55.407 are gonna have the opportunity to contribute to their NFL 401(k). 00:00:55.522 --> 00:00:57.202 And so I wanna be able to talk about that today. 00:00:57.322 --> 00:00:59.482 Primarily looking at from someone who's a rookie. 00:00:59.842 --> 00:01:03.202 To someone who's been in the league for a long time, because oftentimes 00:01:03.202 --> 00:01:07.582 what we found is not everybody knows what this account is, what it's for. 00:01:07.792 --> 00:01:09.742 Um, they get a text message about it. 00:01:09.742 --> 00:01:11.632 There's not a whole lot of directions about it. 00:01:11.632 --> 00:01:16.492 And so I wanna be able to provide some education and some context around 00:01:16.492 --> 00:01:22.222 what is the NFL 401(k), and then what should I do with it as an active NFL. 00:01:22.282 --> 00:01:22.852 Players. 00:01:22.852 --> 00:01:24.382 So lemme lemme start first with you, Sam. 00:01:24.562 --> 00:01:25.852 Let's go back into the locker room. 00:01:26.272 --> 00:01:30.322 And you are with the Arizona Cardinals, or you're with the Chicago Bears, or 00:01:30.322 --> 00:01:35.812 you're with, um, the Commanders or whatever they were formerly known as. 00:01:35.812 --> 00:01:36.382 All right. 00:01:36.472 --> 00:01:42.712 And how often, how often did you hear people talking about their NFL 401(k Was 00:01:42.712 --> 00:01:46.552 that like a sexy conversation that people were like, yo dog, you won't believe this. 00:01:47.587 --> 00:01:50.767 Sam Acho: Well, funny enough, Ricardo, there was a piece of it that was, 00:01:50.827 --> 00:01:52.417 Hey, yo dog, you won't believe this. 00:01:52.417 --> 00:01:55.177 Usually at the beginning of the year, there'd be a couple guys in 00:01:55.177 --> 00:01:57.457 the locker room, right when we were getting ready to sign that paper 00:01:57.457 --> 00:02:01.027 that said, Hey, how much do you wanna, uh, contribute to your 401(k)? 00:02:01.417 --> 00:02:03.547 Everyone would say, Hey, max it out. 00:02:03.547 --> 00:02:04.747 Max it out, max it out. 00:02:04.747 --> 00:02:05.587 I'm like, what do you mean? 00:02:05.587 --> 00:02:06.847 Why am I giving away money? 00:02:06.847 --> 00:02:10.777 I didn't know what it was or why I was maxing it out, but they would 00:02:10.777 --> 00:02:13.027 say, Hey man, this is the one of the best investments you get. 00:02:13.027 --> 00:02:14.047 They match it two to one. 00:02:14.407 --> 00:02:15.547 So I'm thinking, okay, great. 00:02:15.697 --> 00:02:16.627 I'm gonna max it out. 00:02:16.627 --> 00:02:17.977 This is gonna be perfect and awesome. 00:02:18.487 --> 00:02:20.712 And that was the last conversation I heard about a 401(k). 00:02:21.682 --> 00:02:25.432 Period until the next September beginning of the the, the NFL season 00:02:25.762 --> 00:02:29.752 where you go to sign that form again and guys would say, Hey, max it out. 00:02:30.052 --> 00:02:32.812 So yes, there was a conversation where I thought I was doing the right 00:02:32.812 --> 00:02:36.442 thing of maxing out my 401(k) and the NFL is gonna match it two to one. 00:02:36.442 --> 00:02:38.132 And man, that's a huge deal. 00:02:38.592 --> 00:02:42.802 But I never heard about it again or, or really anything about 00:02:43.042 --> 00:02:45.262 that it was an investment account or that you can direct it. 00:02:45.262 --> 00:02:45.982 I heard none of that. 00:02:45.982 --> 00:02:49.912 It was just the fact least I max, lemme try to call my advisor and see if I made. 00:02:52.237 --> 00:02:54.217 Riccardo Stewart: let me just ask you one more question on that. 00:02:54.217 --> 00:02:55.417 This is probably an easy question. 00:02:55.627 --> 00:02:59.377 So later, when you became a vet, did you go tell the young guys, Hey, I 00:02:59.377 --> 00:03:01.147 don't know what it is, but max it out. 00:03:01.372 --> 00:03:04.432 Sam Acho: I did like all jokes aside, I did, I would, I, I, I thought I 00:03:04.432 --> 00:03:07.102 was a smart one thinking, Hey guys, you know, this is a two to one match. 00:03:07.102 --> 00:03:11.002 What other investment do you get where you put in $1 and they give you $2, 00:03:11.002 --> 00:03:15.022 you put in 10, they give you 20, you put in a hundred, they give you 200. 00:03:15.262 --> 00:03:17.062 There's no better investment. 00:03:17.242 --> 00:03:18.862 So I would tell guys, max it out. 00:03:19.312 --> 00:03:20.602 'cause that was all that I had heard. 00:03:20.842 --> 00:03:24.982 No one had ever told me what goes beyond just, Hey, max out your 401(k). 00:03:25.427 --> 00:03:25.912 Riccardo Stewart: I love it. 00:03:25.912 --> 00:03:26.302 I love it. 00:03:26.302 --> 00:03:27.802 So let's, let's educate. 00:03:27.802 --> 00:03:29.872 All right, let's go into the classroom. 00:03:29.872 --> 00:03:31.732 Let's go into the lecture hall with the professor. 00:03:32.767 --> 00:03:33.307 Mr. 00:03:33.307 --> 00:03:38.887 Locke, could you please explain to us what is the NFL 401(k) and why 00:03:38.887 --> 00:03:41.152 is it so special to NFL athletes? 00:03:41.662 --> 00:03:42.922 Jeff Locke: Let's start at square one. 00:03:42.922 --> 00:03:43.252 Rick. 00:03:43.252 --> 00:03:44.362 What's a 401(k)? 00:03:44.662 --> 00:03:44.932 Right? 00:03:44.932 --> 00:03:47.482 So a 401(k), right? 00:03:47.482 --> 00:03:50.782 Essentially what was happening all around the US is people were not saving 00:03:50.782 --> 00:03:52.252 enough for their own retirements. 00:03:52.582 --> 00:03:53.212 Point blank. 00:03:53.662 --> 00:03:57.802 So the IRS said, we're gonna give you tax breaks if you save your own retirement. 00:03:57.922 --> 00:04:02.957 So the 401(k) plan was created where employers, aka the NFL. 00:04:03.607 --> 00:04:05.737 Set up this special plan, right? 00:04:05.737 --> 00:04:12.157 And it gives you tax breaks to invest for yourself for the future, right? 00:04:12.157 --> 00:04:16.837 So now the NFL 401(k), like I said, tax breaks. 00:04:16.987 --> 00:04:21.847 So this year you can put $23,500 of your hard earned money. 00:04:22.597 --> 00:04:25.627 When Sam was talking about max it out, that is the max 00:04:25.627 --> 00:04:27.872 it out amount this year, 23.5. 00:04:29.137 --> 00:04:30.937 And you don't pay tax on that money. 00:04:31.537 --> 00:04:35.617 So instead of telling the IRS, you made a million dollars, you get to tell them 00:04:35.617 --> 00:04:42.187 you made a million dollars minus the 23 500, so you paid less tax in this year. 00:04:42.307 --> 00:04:48.457 If you're paying a 40% tax rate, that's almost $9,000 less you pay this year in 00:04:48.457 --> 00:04:51.217 taxes by putting the 23,500 in there. 00:04:52.222 --> 00:04:56.572 Sam said another really big point, the two to one match, right? 00:04:56.572 --> 00:05:01.642 So you get the tax break and you literally get free money from your 00:05:01.642 --> 00:05:03.832 team by putting money in there. 00:05:04.402 --> 00:05:05.662 So it's a two to one match. 00:05:05.932 --> 00:05:10.887 There's some rules around it, but as long as you put 17K in this year, right, 00:05:11.092 --> 00:05:18.262 the NFL will put in $34,000 of their money, the team's money into your 401(k). 00:05:18.712 --> 00:05:22.102 That you get to invest and have for the rest of your 00:05:22.102 --> 00:05:23.872 life, they can't take it back. 00:05:24.292 --> 00:05:25.402 There's no clawbacks. 00:05:25.432 --> 00:05:26.332 There's no gimme backs. 00:05:26.332 --> 00:05:27.832 They cut you, right? 00:05:28.192 --> 00:05:29.002 That is your money. 00:05:30.142 --> 00:05:33.172 Just for reference, other employers, right? 00:05:33.172 --> 00:05:37.192 You go work for some other company, you put in 23 5, they 00:05:37.192 --> 00:05:39.922 might give you like 10 to 14 K. 00:05:40.312 --> 00:05:45.532 If you work at a really good company, N NFL's putting in 34, right? 00:05:45.532 --> 00:05:46.012 Which is. 00:05:46.597 --> 00:05:51.307 Really unheard of anywhere, aside from maybe the MLB is the only one that's 00:05:51.307 --> 00:05:52.987 really even close that we've heard of. 00:05:53.227 --> 00:05:58.717 MBA's almost there also, so if you're not taking advantage of it, literally 00:05:58.717 --> 00:06:03.277 giving away free money either through tax savings or the money they're 00:06:03.277 --> 00:06:05.497 putting in there for you and matching. 00:06:07.687 --> 00:06:08.407 Riccardo Stewart: that's good. 00:06:08.737 --> 00:06:11.107 Appreciate the history and the education on that. 00:06:11.647 --> 00:06:14.047 Okay, Zach, take, let's go back to the locker room. 00:06:15.292 --> 00:06:20.667 What do most players not know about their NFL 401(k) that they should know? 00:06:25.497 --> 00:06:25.837 Zach Miller: that should 00:06:30.257 --> 00:06:41.937 they're not getting should beviset. 00:06:42.602 --> 00:06:44.632 that they are not allowed to give advice on outside accounts. 00:06:44.642 --> 00:06:44.792 It's an account, 00:06:50.152 --> 00:06:51.052 assets held at BNY NFL. 00:06:52.422 --> 00:06:56.262 So you have to have an advisor independent, so that advisor can tell you 00:06:59.782 --> 00:06:59.902 how to invest retirement account. 00:07:00.897 --> 00:07:00.917 if they 00:07:03.937 --> 00:07:04.097 they, 00:07:09.657 --> 00:07:10.087 they can't. 00:07:24.562 --> 00:07:28.012 Riccardo Stewart: Yeah, I, um, you ever have those moments in life? 00:07:28.042 --> 00:07:31.222 We all have 'em where we're like, Dick, I had no idea it was like that. 00:07:31.282 --> 00:07:31.702 You know what I mean? 00:07:31.702 --> 00:07:34.072 You kind of grow up, you experience some things like, I 00:07:34.072 --> 00:07:35.602 had no idea it was like that. 00:07:36.532 --> 00:07:39.292 My assumption is there's gonna be several NFL athletes that are listening 00:07:39.292 --> 00:07:41.962 to this and they're gonna go, you just named a bunch of companies 00:07:42.292 --> 00:07:43.942 that me and my friends are with. 00:07:44.512 --> 00:07:47.002 I've been in the NFL for eight years, nine years. 00:07:47.367 --> 00:07:50.037 And I've just thought this thing was being taken care of. 00:07:50.037 --> 00:07:54.177 So what you just told me is that this isn't an investment count that 00:07:54.177 --> 00:07:56.637 my advisor is not giving advice on. 00:07:56.637 --> 00:07:57.657 Is that correct, Zach? 00:07:58.632 --> 00:07:59.042 Zach Miller: That's correct. 00:08:02.362 --> 00:08:03.942 Because it's not, they can choose to advise 00:08:06.252 --> 00:08:06.432 and 00:08:13.772 --> 00:08:15.102 they're not allowed to do it because that's what they've advise. 00:08:18.692 --> 00:08:19.742 Riccardo Stewart: Back in the classroom. 00:08:19.772 --> 00:08:22.322 Okay, Jeff, actually, let's go out of the classroom. 00:08:22.472 --> 00:08:25.472 Let's actually get around the table and get some advice here and maybe 00:08:25.472 --> 00:08:30.572 some recommendation, because now I just found out I did not know that, what 00:08:30.572 --> 00:08:35.222 Zach just told me, and I've been saying macho, and I've been like Max out. 00:08:35.222 --> 00:08:35.852 Max out. 00:08:35.852 --> 00:08:37.202 So I've been maxing out. 00:08:37.692 --> 00:08:40.722 But Jeff, what do I do if I just realize that I have a broker who 00:08:40.722 --> 00:08:42.552 doesn't give advice on this account? 00:08:42.732 --> 00:08:46.062 One, what's been happening if nobody's been giving advice? 00:08:46.122 --> 00:08:48.582 And two, what the heck do I do? 00:08:49.032 --> 00:08:50.592 Jeff Locke: So the first thing that might be happening is you 00:08:50.592 --> 00:08:52.842 might not be maxing it out, right? 00:08:52.842 --> 00:08:56.622 Like Sam said, you might be losing out of the benefit of free money from the 00:08:56.622 --> 00:09:02.262 NFL if probably if your advisor and your CPA have not been talking, right? 00:09:02.262 --> 00:09:03.282 You might be missing that. 00:09:04.062 --> 00:09:07.932 That's a huge miss because I don't get to call the NFL and the team back three 00:09:07.932 --> 00:09:10.992 years from now and be like, Hey, I forgot to put money in three years ago. 00:09:11.322 --> 00:09:12.372 It's no going back. 00:09:12.432 --> 00:09:13.962 You don't do it by 1231. 00:09:14.322 --> 00:09:17.022 You don't ever get that free money again, right? 00:09:17.292 --> 00:09:22.302 Second is if it's not invested right, you're literally costing your future 00:09:22.302 --> 00:09:24.972 self hundreds of thousands of dollars. 00:09:25.302 --> 00:09:25.482 Right? 00:09:25.482 --> 00:09:28.572 We talked about in our last episode, the target date fund, right? 00:09:28.572 --> 00:09:30.492 That's the default investment they put you in. 00:09:31.197 --> 00:09:35.577 For a young NFL player in your twenties, the target date fund is most likely 00:09:35.607 --> 00:09:38.217 not in your best interest, right? 00:09:38.217 --> 00:09:42.477 There's ways that you can grow your money much faster with the investments in there. 00:09:42.537 --> 00:09:47.787 No investments guaranteed, but history shows changing up. 00:09:47.787 --> 00:09:51.657 The investments in there can do a lot of good for your future self. 00:09:51.897 --> 00:09:53.247 A lot more growth in the account. 00:09:55.272 --> 00:09:57.552 Riccardo Stewart: Zach, let me, let me, I'm not gonna close with you 'cause I'm 00:09:57.552 --> 00:10:00.702 gonna actually throw you guys a curve ball here afterwards, but, you know, you 00:10:00.702 --> 00:10:05.172 went back and you got your, your certified financial planner and you probably 00:10:05.172 --> 00:10:06.552 start looking at all your accounts. 00:10:06.822 --> 00:10:10.782 So you, you would be really helpful to give advice to the athlete who 00:10:10.782 --> 00:10:15.462 now realizes okay, it hasn't been allocated, it has not been advised upon. 00:10:15.462 --> 00:10:16.962 It's not what, it's not being. 00:10:17.392 --> 00:10:20.457 aligned with my vision that I have for my life. 00:10:20.607 --> 00:10:21.327 Okay, what do I do? 00:10:21.387 --> 00:10:21.812 What do I do next? 00:10:27.714 --> 00:10:28.124 Zach Miller: The biggest thing is it needs to bevis for the 00:10:28.124 --> 00:10:28.994 benefit just look at my account 00:10:33.944 --> 00:10:33.994 I have that you need. 00:10:34.554 --> 00:10:40.024 how that money grows and then once retired like how you that money out 00:10:40.024 --> 00:10:42.964 matters matters for the investment growth, 00:10:47.024 --> 00:10:48.404 what you're picking in there and then also implications and how to pull 00:10:48.404 --> 00:10:52.094 the money out the right way how long to wait for it to grow, all those 00:10:52.094 --> 00:10:54.914 things you have to have someone. 00:10:55.584 --> 00:10:57.484 If you are the type of player that should have it's it's you have 00:11:05.134 --> 00:11:07.784 you and you you know 00:11:16.744 --> 00:11:16.974 you have to have advisor. 00:11:19.294 --> 00:11:21.304 Riccardo Stewart: Okay, this is a question, right? 00:11:21.424 --> 00:11:24.934 So the way that I problem solve in my life, uh, it's 00:11:24.934 --> 00:11:26.074 kind of four things I learned. 00:11:26.074 --> 00:11:27.244 There's a guy named Mike Metzer. 00:11:27.244 --> 00:11:31.894 I think this is coined by him, and it's a ought, is, can, will. 00:11:32.194 --> 00:11:34.324 There's something the way, it's something ought to be. 00:11:34.624 --> 00:11:37.054 However, there is a way that it is. 00:11:37.354 --> 00:11:41.644 There's some things I can do, and if I did those things, it will be like this. 00:11:41.704 --> 00:11:44.524 So an example would be, all right, something's broken. 00:11:44.914 --> 00:11:45.694 And we go. 00:11:45.724 --> 00:11:50.614 When it comes to this beautiful NFL 401(k), it ought to be one of the 00:11:50.614 --> 00:11:53.584 best accounts that an NFL player has in terms of his benefits. 00:11:53.824 --> 00:11:58.894 It is right now not necessarily being advised upon by many 00:11:58.894 --> 00:12:02.734 advisors who were with NFL athletes, which is kind of ironic. 00:12:03.814 --> 00:12:05.014 Some things they can do. 00:12:05.074 --> 00:12:06.364 Zach, two things real quick. 00:12:06.694 --> 00:12:07.184 Boom boom. 00:12:14.655 --> 00:12:15.145 Zach Miller: how you can 00:12:23.295 --> 00:12:23.605 help you. 00:12:27.645 --> 00:12:27.935 Riccardo Stewart: Okay. 00:12:28.100 --> 00:12:29.180 Ought to be like this. 00:12:29.180 --> 00:12:30.320 It is like this. 00:12:30.410 --> 00:12:32.570 Zach just gave us some things we can do. 00:12:32.690 --> 00:12:32.780 Okay. 00:12:33.170 --> 00:12:34.400 If I did those things. 00:12:35.060 --> 00:12:37.040 What will it look like, Jeff? 00:12:37.100 --> 00:12:39.170 Like what is, what could it be looking like? 00:12:39.170 --> 00:12:41.150 And since as it's growing and so forth. 00:12:41.270 --> 00:12:43.370 Jeff Locke: So what it will look like is your paychecks 00:12:43.370 --> 00:12:44.900 are gonna get reduced, right? 00:12:44.960 --> 00:12:46.340 That's a good thing, right? 00:12:46.340 --> 00:12:47.300 Money's leaving. 00:12:47.570 --> 00:12:51.950 What would've went your account going into the 401(k) instead, right? 00:12:52.010 --> 00:12:55.970 You're gonna see a fat contribution from the team, either at the end of the year 00:12:56.330 --> 00:13:00.560 or the middle of the year, like, Hey, you put your money in, here's your match. 00:13:01.040 --> 00:13:01.430 Right? 00:13:01.460 --> 00:13:05.030 And you need to be having a conversation with your advisor of, Hey. 00:13:06.170 --> 00:13:10.250 Get into NFL player benefits and let's change your investments, right? 00:13:10.250 --> 00:13:13.550 It should not just be this target date default, right? 00:13:13.550 --> 00:13:16.130 It should be specific to you and your plan. 00:13:16.680 --> 00:13:17.190 Riccardo Stewart: All right. 00:13:17.190 --> 00:13:18.720 Lastly, the butterfly effect. 00:13:18.960 --> 00:13:22.620 Now, Sam Macho, you get to go back into the locker room knowing what you know now, 00:13:22.830 --> 00:13:24.365 and you're talking to that young rookie. 00:13:25.035 --> 00:13:27.340 What are you letting him know about this NFL 401(k). 00:13:28.360 --> 00:13:29.545 Sam Acho: I'm letting them know two things. 00:13:29.545 --> 00:13:33.865 Number one, max it out so you can get that free money from the NFL. 00:13:34.255 --> 00:13:35.245 But number two. 00:13:35.790 --> 00:13:41.190 Talk to your advisor to find out if they're managing it or not, because 00:13:41.190 --> 00:13:43.170 if they're not, that is a problem. 00:13:43.620 --> 00:13:45.390 That is a major, major problem. 00:13:45.390 --> 00:13:48.300 There's so much growth and, and I would say, listen, when you, when you, when you 00:13:48.300 --> 00:13:50.490 get their answer, listen to what they say. 00:13:50.490 --> 00:13:53.520 You heard from Zach earlier, uh, about how they're either not 00:13:53.520 --> 00:13:55.050 allowed to or they choose not to. 00:13:55.470 --> 00:13:58.440 I remember when I asked my advisor initially, I got a 00:13:58.440 --> 00:13:59.790 little bit of a veiled answer. 00:13:59.790 --> 00:14:01.260 Well, it's not that important. 00:14:01.260 --> 00:14:02.820 No, some just, just listen. 00:14:03.480 --> 00:14:06.720 Just listen to what they say as you're listening to this podcast. 00:14:07.590 --> 00:14:07.920 Jeff Locke: Rick. 00:14:07.920 --> 00:14:09.990 Rick, last thing I'll, last thing I'll say real quick. 00:14:10.020 --> 00:14:10.650 Rookies. 00:14:11.880 --> 00:14:14.205 You, you kind of get screwed your first year, right? 00:14:14.205 --> 00:14:17.655 The reason 10 15 is so important is that's when you're allowed to start 00:14:17.655 --> 00:14:21.525 putting money into your 401(k) as a rookie and you guys only get a 00:14:21.525 --> 00:14:23.475 $1,500 contribution from the team. 00:14:23.475 --> 00:14:27.915 You don't get that 30 4K, but second year, that's when the fun really starts. 00:14:27.915 --> 00:14:33.705 So sorry, rooks just the way it is, but um, you all know why they do that. 00:14:33.735 --> 00:14:34.875 The NF l's a business. 00:14:35.518 --> 00:14:36.873 Riccardo Stewart: That's a good clarification. 00:14:37.263 --> 00:14:38.643 I mean, I hope this was helpful for you guys. 00:14:38.643 --> 00:14:41.673 As our listeners, this is just a, a beginning of a part. 00:14:41.673 --> 00:14:44.493 We'll begin to talk about these NFL benefits that you have. 00:14:44.703 --> 00:14:47.073 Everyone thinks about the signing bonus, the sack and 00:14:47.073 --> 00:14:48.933 extension, the second contract. 00:14:48.933 --> 00:14:52.653 Third contract, which are amazing, but that's when you capture your. 00:14:53.138 --> 00:14:56.228 What we're talking about is converting it and being able to continue it. 00:14:56.378 --> 00:14:58.178 That your money is continuing to make money. 00:14:58.418 --> 00:15:00.248 Hey, we would love to hear from you. 00:15:00.308 --> 00:15:03.548 Any questions you guys have, um, about what we were talking about, 00:15:03.608 --> 00:15:06.908 uh, we'd love to be able to help you and get you some resources, 00:15:06.908 --> 00:15:08.318 so feel free to reach out to us. 00:15:08.378 --> 00:15:12.098 Our number is 6 0 2 9 8 9 5 0 2 2.