Welcome to another hour of The Jalen Ramsey Show where we’re here to talk about your life and your money. Open lines at 818-338-0011. The call is free and some say the advice is exactly what you pay for it! We start today out in Renton, Washington with a call from DeKaylin on line one. Welcome to The Jalen Ramsey Show, DeKaylin.

Hello Jalen and thank you taking my call. How are you doing today?

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

Calling today about a financial literacy foundation. I’m a two-year veteran with a quality franchise who has carved myself a major role in our passing attack. I’ve been working with my advisor to build my portfolio and feel generally pretty good about the route we are taking.

Great. You’re starting early and that’s valuable.

Yeah, most def. Most def. I’m a little uneasy though because, a little background, I’m a Mississippi boy. Went there for grade school, played at Ole Miss, and still visit my parents there. But. as I’m meeting more people here around my own age, I’m discovering that they have a lot of financial knowledge that I don’t and it’s making me uncomfortable because I’m worried about what I may be missing or, you know, how I may be exposed because of these blind spots.

It’s like they say, a Mississippi boy with money is a little like the mule with the spinning wheel. No one knows how he got it and danged if he knows what do with it. You grew up in a state that cares about teaching financial literacy as much as they care about educating their citizenry on the Quran. Now I’m sure you’ve taken the NFL rookie finance block but, let’s face it, that’s there to teach you how to not be staring down bankruptcy during your playing career; it offers next to nothing of substance with regard to long-term planning. These peers of yours you speak with, do they work around the league?

Not at all. Bible study folks mostly. Teachers and engineers and project executives and the like. And they’re not making what I am but they’re set. They have their plans and budgets and goals and, honestly, they seem more secure in their financial planning than I feel. One guy was talking about his Roth IRA contribution planning for 2021 and another knew how much of the unemployment benefits from 2020 are now going to be tax free. I didn’t know any of that.

Well, you made too much last year to open a Roth IRA nor did you receive any unemployment compensation last year. But I get your concern and you aren’t alone. Americans are terribly financially illiterate and that is by design. You came from one of the most severely impacted states where elementary education is ranked 45th and economic growth is 50th. When the only guidance on personal finance you ever received was some evangelical conman telling you to give him all your money, how else could you know?

Well, we understand that the best way our money can work for the Lord is for him to manage it because he says prophets don’t have to pay taxes and also buying books from teevee pundits furthers God’s Promise.

Tell me, would you say you’re more knowledgeable about snake handling than your new Seattle peers?

Goodness yes! I once assisted when a lady in our tent had a touch of the malaria and Pastor Ron brought out —

See? That’s all I’m saying. You grew up around bullshit, these guys grew up around things like logic and critical thinking and just a state that is generally, you know, part of modern civilization. But here’s what’s important for you to understand — your foundation is what it is. Would it be nice if you could run a quick compound, or even simple interest, equation? Wouldn’t hurt but even those guys who have seen  P(1 + r/n)^nt don’t ever run that admittedly simple equation.

I mean, I can learn. I just don’t know where I start. Do I read Suze Orman or, you know, Pastor Ron says Brother Dan Crenshaw is writing a book and it will have a truly blesses message because America is God’s Favorite Nation. Not Puerto Rico though.

Well, obviously not Puerto Rico. But, if it gives you peace of mind, sit down with your advisor and outline a worst case scenario. Ask him just how far your money today will take you. You have to be sitting on a million-plus. Ask him like it were a one-time inheritance. If the game went away tomorrow, what is your income? How is it withdrawn? Are you taking interest on stocks? How much are you assuming to take per year? How much do you actually need to pull out? I often applaud paying off mortgages as soon as possible simply because it eliminates budget risks when things get lean. Having a clear outline of your assets and estimated monthly spending needs will go a long way in providing you with a sense of peace.

Well, I do plan on making more and I know I am secure. It’s just that I’d like to sound more smart talking about money around these people. 

Oh well if you just want to sound smart, show them your contract. The funny thing about showing off about finances is the only thing that most people care about is earnings. There’s no credit for value in most comparative situations because it is tough to quantify. And what’s really the upper hand in the conversation: knowing how much of your unemployment won’t get taxed or having the luxury of being ignorant to all the details of these assistance programs because you’re never going to need assistance?

Would you have time for me to ask a second question about getting a HELOC?

I would not. That is what your advisor is for. We’re going to hop on over to line two now with Cale in East Rutherford, New Jersey. Cale, welcome to the show.

Thanks for taking my call today Jalen. it’s an honor.

So is that letterman jacket. How can I help?

Calling today about inflation. Well, I’m concerned about inflation. Heard your caller before me here and I’m in quite a bit different situation, earnings-wise. An undrafted free agent last year, I signed with the Titans last summer but ended up released before Week 1 and then only spent a few weeks with the Vikings practice team last fall. I just signed with the Giants on a reserve/future contract and feel like this may be my shot but I feel as distracted about my finances as the last guy who, frankly, I don’t get his fears because he’s already a millionaire.

So you think you have a real opportunity to be playing in the NFL three years from now?

Jalen, I’m a good player. Won SEC Defensive Player of the Week twice in five weeks before tearing my pectoral muscle and losing the second half of my senior season. I’m better now but I get how, between the injury and the whole thing with fellow Mizzou alumnus, Michael Sam, GMs wanted to see if I’d have the stick-to-it-iveness necessary for an NFL career.

Well damn! I mean, SEC Defensive Player of the Week. Twice. And early in the season? So, you won this by locking down Bama or LSU or what?

Well, the Troy Trojans were one but South Carolina was the other. They’re an SEC team. So, look, I get it. I get the odds. But I’m giving it all I got to give and so I’ve just been tossing my checks in a savings account while I focus on improving my game. But I’m afraid I’m going to be losing out with that money sitting there and inflation devaluing it.

So if you can last three whole seasons with the Giants, you’ll be a millionaire. If not, you’ve got yourself a nice little head start, financially. I assume a guy who studies the game as much as you and is white would be interested in a coaching career after his playing days end, whenever that may be?

Sure. But early-career coaches don’t make the kind of money an NFL player does so I’d be years away from making seven-figures. Meanwhile, should my money be sitting in a CD or mutual fund or what?

I wouldn’t use a CD for anything ever. You could put your money into just a money market account or, slightly less risky, a no load mutual fund pinned to the S&P 500 and it would be pretty safe there while you focus on your career. With the potential fluidity of your career situation — and I am considering your injury history here, absolutely — I’d suggest you set some medium range professional milestones for your career path and it’ll give you a clearer picture of how you want to use your league earnings. If you get signed to a long term deal with a $5million signing bonus, then you’re like the DeKaylin above. If you get cut and exit the league in shame, forced to feed your family off whatever communications or family studies degree Missouri pulled out of a Cracker Jack box to award you, then maybe that cash just gets you off to a good civilian start as maybe a down payment on a house.

I think I may be on the civilian side sooner than later, to be honest.

Honestly, Cale in Jersey, you’re probably right. Still though, your inflation concerns are warranted. I mean, you look at any of these online retirement calculators like Nerdwallet and you’ll find the assumptions built in account for 3% inflation rates and 2% earnings growth during the typical career. So, my advice, let that money sit in a conservative and accessible place until you start making NFL type money. If you wash out then it’s no big deal and you’ve got a nest egg you can pull out. If you hit it big then, heck, just laugh and roll it all to your long-term investments. But I wouldn’t tie it up in retirement accounts just yet.

Thanks. I’ll get a call in to my guy to make sure it’s safe while I prepare for next season.

Good thinking. Good questions today though. It’s tough when you’re so young to plan ahead but, remember, your retirement plan is fluid. When you hit a big payday and can fully fund your retirement account, that’s when you update your plans. Similarly, when your wife leaves you and takes half, that’s another time you need to adjust. But there’s nothing wrong with protecting your money in some very secure places — even at the cost of inflation — for a few years as just an insurance policy until you decide that, in your overall plan, there is a way to put that cash to work.

So that’s it for today. Here’s a reminder for those who can to get their vaccine and, for the rest of you, sit tight, mask up, and we’ll see you next time, right here, on The Jalen Ramsey Show.