- Aaron Judge is at the top of the tax bracket, paying 37% for federal taxes and 10.3% for New York state taxes. For him, tax considerations are very important. For every extra dollar he earns in 2022, he’ll have to pay $0.47 in taxes.
- It would be wise to have Aaron Judge have my own bond ladder, these work similarly to a CD ladder. Bonds pay a set amount of interest over a set period and have attractive tax advantages for people in higher income tax brackets.
- Here are six key areas of personal finance that are as relevant to Aaron Judge as they are to you and your family.
Aaron Judge signed a one-year, $19 million contract to play baseball for the New York Yankees in 2022. He then went on to break the MLS record for home runs by hitting 62, the previous record being 61 since 1961. It didn’t start big, as he declined Judge A deal at the start of the 2022 season was worth $213.5 million over a seven-year period ($30.5 million per year). This would have made him the highest-paid right-hand man in all of Major League Baseball.
What would justify turning down a long-term deal with such a large salary? Simply put, I think it’s worth more money. Now he’ll be a free agent, and it’s rumored he could get a $300+ million contract early next season.
The judge’s salary was $19 million this year, which equates to $306,000 per home this year.
Breaking the home run record is a historic event in our national pastime. It was reported that Corey Yeomans, the cheerleader who caught the number 62 ball, could get $2 million to buy a memorial baseball game.
Here are some of Aaron Judge’s personal financial considerations and his rather large salary.
How to play the personal finance game well
Here are six key areas of personal finance that are as relevant to Aaron Judge as they are to you and your family.
If Aaron Judge suffers an injury during the off-season, the potential for a $300 million contract will be in jeopardy. He will want to protect himself with personal insurance to hedge against this risk.
In a similar way, if you are married and have a home and a child, you will be well served for consideration of a life insurance policy. This will protect your ability to pay for your home and raise your child in the event that you are unable to support him. It’s a low-probability item, but it’s basic risk management. Protect your family, as Aaron Judge will protect his future contract, and future earnings of course.
It would be wise for Aaron Judge to have my Bond Ladder, which works in a very similar way to CD . ladder. Bonds pay a set amount of interest over a set period and have attractive tax advantages for people in higher income tax brackets.
With interest rates rising over the past few months, you can now find savings accounts with interest rates of more than 2.4% and CDs with interest rates of more than 3%. If you have cash on hand, you won’t be stuck getting close to 0%, as we have suffered for so many years.
The $19 million salary is a lot of money for anyone, including Aaron Judge. He could live a very full life on his paycheck alone, but instead, he would earn more over the course of his life by investing, and letting his money work for him. He has a lot to work with in order to diversify his fortune in the long run. It would be fair to assume that this would include some stocks, bonds, real estate and private placements.
A good strategy is to have some huge individual growth companies that are not very profitable and can grow over time. Get a large portion of tax lien municipal bonds, income-producing real estate and a few private filings.
Major League baseball players have a pension that will provide additional retirement income once they turn 62, but that should just be a cake on the cake for the modern ballplayer, not to mention a big star like Judge. With higher income earners, there are complex ways they can plan for retirement as pre-tax benefits for commonly used vehicles are phased out.
For most American retirees, it is important to consider how you will receive your income once you retire. Will You Have 401K Income From Other Investments? How much will your monthly expenses be in retirement? Will your sources of income be sufficient to cover your expenses? If there is an expected gap, it will need to be addressed. There are three main factors that you can withdraw: save more now, find investments that earn more, or retire later.
Aaron Judge is at the top of the tax bracket, which makes tax considerations very important. He will likely pay 37% of his income in federal taxes and 10.3% in New York state taxes. For every extra dollar he earns in 2022, he’ll have to pay $0.47 in taxes to Uncle Sam. It is common to search for tax concession cars that do not have standard income tax rates. Some common sources are municipal bonds, individual growth stocks, and preferred stocks with preferred dividends.
Everyone needs to do some strategic tax planning to work smart with their specific tax situation. Do you take advantage of pre-tax and tax-deferred options like 401ks and IRAs? Should you have a ROTH IRA and/or consider tailgate transfers?
Aaron Judge has had exposure to estate planning issues with his level of net worth. Currently, properties over $12.06 million will have to pay 40% of property taxes. Most Americans do not have an estate tax liability but still need to obtain some estate planning documents.
The general need for estate planning for Americans who own a home is a living trust to avoid probate for their heirs. Also, a will and permanent power of attorney for health care issues, money, and children are regular items that are addressed while completing a living credit. This isn’t just for an aircraft group anymore.
Aaron Judge plays baseball very well and is likely to land a record-breaking contract for the 2023 season. To play the personal finance game well, both for Aaron Judge and for you, the above six focus areas are very important. We can’t all hit 60+ points at home, but we can try to win with our personal finances.
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