Professional athletes, celebrities and lottery winners all have one thing in common: they tend to get rich quick—only to lose their newfound wealth even quicker. That sudden reversal of fortune is so common that wealth advisors can predict with near certainty just how fast these groups will lose their money.
According to Sports Illustrated, 60 percent of former professional basketball players are broke within five years after retirement, with joblessness and divorce being prime factors for mismanaging their wealth.
"You give a 19-year-old a check for a million dollars, he thinks it's a million dollars," former linebacker Bart Scott said an interview with CNBC's "On the Money."
Scott, a former NFL linebacker who played from 2002-2012 with the NY Jets and Baltimore Ravens, had total career earnings of $61 million. However, Scott ultimately learned the value of a dollar after he left the field.
"You learn about taxation. You learn about insurance. You learn about how to protect yourself and how to have an emergency fund," Scott said.
"Unfortunately, as athletes we never see the end coming, so when you start understanding that [you] have to make this money last, because most of us have to go out and get another occupation when we finish," he added.
Scott is now a CBS Sports Analyst and has teamed up with Morgan Stanley to help teach athletes financial literacy.