Welcome back to The Jalen Ramsey Show. We’re here to have a conversation about your life and your money. Open lines at 818-338-0011. We are here to take your calls and, some say, the advice is worth exactly what you pay for it! Let’s start off today out west with Richie in Las Vegas, Nevada. Welcome to The Jalen Ramsey Show, Richie.

Thanks for taking my call, Mr Ramsey. How are you doing today?

Better than the Jaguars under Tom Coughlin. How can I help?

Well, I’m giving you a ring today with a tax question. What’s the lowest tax rate I should be looking at for my returns?

That depends on quite a few things, Richie. Your earnings, of course, but also your investments and, as importantly, your deductions or expenses. The highest bracket, right now, is 37% for joint earnings over $622,050, which I assume most NFL players will be enjoying in 2020. But this is where you get a good tax professional in your corner and start looking at deductions and credits you can take to lower your tax burden.

Well, I’m on a 2-year, $14million deal. How can I pay no income taxes every year but, say, only $750 other years?

How? Just do it. I mean, no one is stopping you from filing your return however you want. How to do it legally? I’d have to send you to a tax professional.

Well because, you know I’m just saying, if I’m in a 37% bracket and someone much much wealthier than I can have such a lower tax burden — that doesn’t seem right, does it?

Look, I see what you’re doing and I don’t care for it. Politics will affect your personal finances but it’s only one of many outside forces. I’m here to discuss personal finance principles, not the pros and cons of minority rule.

I’m just asking the question. I mean, why can’t I pay $750 a year in taxes?

Because, as is, the system is set up so that if you used any sort of similar tricks and tips, you’d be bankrupted by the audit alone. And here’s why it matters to you: you haven’t budgeted for protracted battle with the IRS in your budget, have you? No, you haven’t. See, the business and/or individuals who paid $750 on an annual return did so because fighting with the IRS, and even paying up to a realistic value in fines, is built into their profit model. It’s no different than say, Jamie Dimon, CEO of JPMorgan, who has overseen a company that has paid off $66 billion in fines under his leadership but, one, he’s never paid a cent of that out of his own pocket; and, two, the earnings on the activity that lead to the $66 billion fine — plus associated lobbying, accounting, marketing, and legal costs — was greater so, as a business decision, illegal activity is a big part of their book.

Well I think I should be able to claim random deductions and —

Claim ’em. You may get away with it. I mean, accounting regulations are more of a legal theory than an executable law. But you may also get caught and, as measly millionaire, you can enjoy the Wesley Snipes treatment.

I was watching the debate and —

You want to know what you should care about as the Presidential race related to your finances? You’re in the entertainment industry. Our revenue stream begins with fans spending money on the NFL experience and that isn’t happening so long as COVID remains unaddressed. In July, the Shield proposed a 35% pay cut to players in burden sharing. You want to take a cut? Better hurry up whatever miracle is going to make the WUFLU disappear or you’re going to be hurt financially, significantly, and, given our career window, quite permanently.

So I think we nipped that in the bud right quick. Let’s move on over to Line 2 where we have Kendall in Cincinnati. Kendall, welcome to the show.

Hi Mr Ramsey. Thank you for taking my call. I’m calling because I just moved here from Wisconsin and I’m a little unsure about how to handle my finances with this move.

What concerns do you have?

Well, I was a 2018 7th-round pick. I’m on my third team in as many season. I’m a southern boy and make my offseason home in Arkansas. But I’ve had to move and break leases a couple times now and I’m wondering, should I just be buying in each market I sign? I’ve got cash and could get like a $200,000 condo or whatever and then have that asset even if I do get released or traded.

And you think owning multiple properties around the nation is preferable to breaking some leases and paying some penalties?

I just see these penalties as costing me money. I know a lot of the guys in the locker room own multiple homes so, you know, I just wasn’t sure what you thought.

Well, if your primary residence was closer to an NFL destination, there may be some conversation. You effectively live outside NFL geography and just need to find occupational housing in whatever city signs you, right? So, no, you don’t need to be buying real estate in every town you stop.

I’m just concerned that I’m throwing money away.

Well, you should be being compensated for this in your large contract. I mean, I know the union pay scales — there’s no reason you can’t afford a rental in your NFL city. Being an NFL star, I’d suggest you reach out when you sign the rental agreement and negotiate eliminating or greatly reducing the penalty if you have to break the lease as the result of NFL activity. So if you get traded or cut or hurt or whatever, you get our free. Many times the leasing office will be so excited to have a Bengal or whatever in their place that they’ll make these kinds of agreements before signing.

But I guess my fear is that I’m missing out on this money going to work, you know. If I bought a house then maybe I’d be building my portfolio.

Bro, you got a rookie contract and just got signed to your third team in three years. You need to be focusing on football. Period. You’re over here calling about boo hoo lease penalties when your time could be better spent on damn near anything else football related. Get your priorities in order. You just signed with a team that 1-2-1 that may win three more games. You’re going to be on the field nonstop, as a linebacker, and enjoy facing Lamar Jackson on Sunday.

So when do I start focusing on building my portfolio then.

When you sign a contract for more than the absolute lowest amount of money and longer than the absolute shortest term for which a team can sign you. Until then, you’re closer to full-timing it in Arkansas where you’ll never have to worry about broken leases or indoor plumbing again.

Great calls, as always. For all our listeners out there, you all sit tight, mask up, and we’ll see you next time, right here, on The Jalen Ramsey Show.