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Lebron: The NBA’s GOAT of Investing for the Long-Term

By Roland McIntyre, CFP®

King James is hitting that milestone age of 40, and while Father Time is undefeated, LeBron’s career is an absolute clinic in how to invest for the long game. Forget those “get rich quick” schemes, we’re talking about building a legacy, just like LeBron!

The S&P 500: LeBron’s Longevity

LeBron entered the league back in 2003. Remember those baggy jerseys and the early 2000s fashion? Yikes! 😂 Back then, the S&P 500 was around 1,000 points. Now, it’s closing in on 6,000! LeBron’s career and the S&P 500 have both aged like fine wine! 🍷

If you’d dropped $10,000 into the S&P 500 back when LeBron was a rookie, you’d be looking at a return of around 6x your initial investment! That’s the magic of long-term investing – it’s like drafting LeBron with the first pick and watching him dominate for two decades. 🤑

Building an Empire Beyond the Court

LeBron’s not just a baller; he’s a business mogul! His net worth is estimated to be over $1 billion, dwarfing his (still massive) NBA career earnings of around $530 million. 🤯 Dude’s got the Midas touch!

Here are a few highlights from his investment portfolio:

Buying Stock Funds: Building Your All-Star Team

LeBron is the ultimate team player, always elevating those around him. Investing in stock funds is like building your own All-Star squad. Instead of picking individual stocks (like trying to scout the next LeBron, good luck!), you invest in a bunch of companies at once. This diversification is key! 🫱🏾‍🫲🏻

Think of it like this: some players might have an off night, but others will step up. That’s how stock funds work. Some companies might struggle, but others will thrive, keeping your overall portfolio strong. It’s like having a starting lineup of Steph Curry, Kevin Durant, Anthony Davis, and Giannis. 🏀🌟

Compound Interest: The LeBron James of Investing

Remember rookie LeBron? the baggy jersey, full of potential, but still developing. Over time, he built up his skills, his strength, his basketball IQ. Compound interest is like that. Your initial investment is your rookie year. The “interest” it earns is like adding muscle and mastering new moves. That interest then earns its own interest, and suddenly you’re hitting game-winners like it’s nothing! 📈💰

Think of it like this: every time LeBron switched teams and elevated his game, it was like your returns getting a massive boost. First with Miami, then that epic comeback in Cleveland, and now the Lakers chapter. Each success builds on the last, just like compound interest! 🏆

The Rule of 72: “This One is for You!!”

This rule is a quick way to estimate how long it takes for your investments to fight back and DOUBLE their value. Divide 72 by the annual rate of return, and boom – you’ve got your comeback timeline! 🧮

Let’s say your investments are averaging a 6% return. 72 divided by 6 equals 12. In about 12 years, you’ve doubled your money and silenced the doubters! It’s like LeBron leading that historic 3-1 comeback in the 2016 Finals – legendary! 🤯

Weathering the Storm: LeBron’s Resilience

LeBron’s faced his fair share of criticism and setbacks. Early playoff exits, “The Decision,” those first Finals losses… But he always bounced back stronger. Your financial journey will have its ups and downs too. Market crashes, unexpected expenses, the temptation to panic sell… But just like LeBron, you gotta stay focused on the long game. Don’t let short-term noise derail your long-term goals. 💪

The Power of Consistency: LeBron’s Work Ethic

LeBron’s not just talented; he’s insanely disciplined. Countless hours in the gym, even when no one’s watching. That’s the key to building wealth too. Consistent investing, even small amounts, pays off BIG time in the long run. It’s like those daily free throws LeBron practices – they might seem boring, but they make all the difference when it matters most. 🎯

Generational Wealth: The James Gang Legacy

LeBron’s not just building wealth for himself; he’s setting up his family for generations to come. Bronny and Bryce are already making waves, and with LeBron’s guidance, they’re learning the importance of financial responsibility. That’s the true power of investing – creating a lasting legacy for your loved ones. 👨‍👦‍👦

Conclusion

LeBron James is more than just a basketball legend; he’s a walking, talking investment strategy! From compound interest to diversification, his career provides invaluable lessons for building long-term wealth. So, take a page from King James’s playbook and start investing like a champion! 🥇

Disclaimer: Hey, I’m a Certified Financial Planner professional with my own black owned financial advisory firm, and a HUGE LeBron fan! This blog is just for fun and informational purposes, not financial advice.

🏀 Seriously, my Tennessee State University crew can still debate LeBron vs. Kobe vs. Jordan like it’s 2009…we’re getting old and so is LeBron! 😂

Happy 40th Birthday 🎉 King 🤴🏾 James.