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NBA Draftees Should Look Into Annuities

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Congratulations!  Your client was drafted by an NBA team.  Your client will be making money, you’ll be making money…now what do you do?   How about taking steps to ensure your client has money he and his family can never outlive, for as long as they live.  An annuity will help toward that goal.

Today’s modern annuities build on many of the features of traditional annuities: they grow tax-deferred and offer guaranteed income for life.  Further, they allow individuals to customize their retirement income to meet specific retirement needs. Customization can be achieved through the optional living benefits available. Some of the new and more significant features of optional living benefits include:

A)     A measure of control and ownership of assets while receiving guaranteed lifetime income.

B)      The ability to capture market upswings in your “Protected Withdrawal Value”—used to determine income payments—while helping to protect income from market downturns.

C)      A wide selection of investment portfolios to meet your risk tolerance, whatever it may be.

The guaranteed income under the optional living benefit is protected regardless of how portfolios are invested. In effect, with a guaranteed lifetime income option, one never needs to worry about outliving his/her income stream regardless of how the market performs. Like traditional annuities, you have income for life; unlike traditional annuities, you have a measure of control over and access to the underlying assets. For example, you can withdraw an amount in excess of the guaranteed income payments, but this will reduce your future guaranteed income payments proportionately. This control allows you to potentially grow your assets, access your money when needed, and possibly leave money behind for your heirs.

Disclosures.  The information contained herein is neither an offer to sell nor a solicitation of an offer to buy any security.  Past performance is not a guarantee of future results.  Further, the information herein is intended solely to provide general information and does not constitute a promotion of any offerings or products.  Donald J. Kushner is an independent financial advisor with Arque Capital, Ltd., and does business as DK Sports Financial.  Arque Capital, Ltd., and DK Sports Financial are unrelated entities.  Securities offered through Arque Capital, Ltd.  7501 E. McCormick Parkway, Suite 111 North Court, Scottsdale, AZ 85258.  (602) 971-9000.  Member FINRA/SIPC.  Any unauthorized reproduction of this information is strictly prohibited.

By Darren Heitner

Darren Adam Heitner, Esq., is a preeminent sports attorney and the founder of Heitner Legal, P.L.L.C., a Fort Lauderdale-based law firm specializing in sports law, contract negotiations, intellectual property, and arbitration. He earned his Juris Doctor from the University of Florida Levin College of Law in 2010 and a Bachelor of Arts in Political Science, magna cum laude, from the University of Florida in 2007, where he was named Valedictorian of the College of Liberal Arts and Sciences. Admitted to practice in the state bars of Florida, New York, and the District of Columbia, as well as multiple federal courts, Darren also serves as a certified arbitrator with the American Arbitration Association.

As an adjunct professor, Darren imparts his expertise through teaching Sports Law at the University of Florida Levin College of Law and Name, Image, and Likeness (NIL) at the University of Miami School of Law in the Entertainment, Arts, and Sports Law LL.M. program. His scholarly contributions include authoring several books published by the American Bar Association, such as How to Play the Game: What Every Sports Attorney Needs to Know, and numerous articles in prominent publications like Forbes, Inc. Magazine, and Above the Law. His thought leadership in NIL has earned him recognition as one of the foremost experts by The Wall Street Journal, USA TODAY, and On3, and he has been lauded as a “power player in NIL deals” by Action Network and a “top sports trademark attorney” by Sportico.

Darren’s passion for sports law led him to establish Sports Agent Blog on December 31, 2005, initially titled “I Want To Be A Sports Agent.” The platform, created as a New Year’s resolution, has grown into a cornerstone of the sports agency community, offering in-depth analysis of industry trends, legal disputes, and agent-player dynamics. His commitment to the field is further evidenced by his representation of numerous athletes and sports agents, as well as his prior role as an Adjunct Professor at Indiana University Bloomington, where he developed and taught a course on Sport Agency Management from 2011 to 2014.

Darren’s contributions have been recognized with prestigious honors, including the University of Florida’s 40 Under 40 Award, the University of Florida Levin College of Law’s Outstanding Young Alumnus Award, and designation as the best lawyer in Fort Lauderdale by Fort Lauderdale Magazine. He remains an active voice in the sports law community, sharing insights through his weekly NIL newsletter and his X posts, engaging a broad audience on legal developments in sports.

One reply on “NBA Draftees Should Look Into Annuities”

I think it is important to note that although annuities can be a viable part of one’s portfolio, it definitely should not be the only part in one’s portfolio, especially when the client in question is a 20-something who’s realistic maximum earning years will be done by the time he/she is in their mid-30’s. Annuities are great for long term financial goals, but are not very economical if the money is needed prior to age 59 1/2. I help my clients (especially athletes) create multiple buckets of money that are intended for different purposes and time horizons (short, medium and long-term).

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