6 Key Areas Of Personal Finance For High Earners Like Home Run King Aaron Judge – Forbes

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Key takeaways

  • Aaron Judge is in the highest tax bracket, paying 37% for Federal and 10.3% for New York State taxes. For him, tax considerations are very important. For every additional $1 he earns in 2022, he will have to pay $0.47 in taxes.
  • It would be wise for Aaron Judge to have a municipal bond ladder, these work similarly to a CD ladder. The bonds pay a specific amount of interest over a specific term and have attractive tax advantages for people in high-income tax brackets.
  • Here are six key areas of personal finance that are just 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 American League record for home runs by hitting 62, the previous record stood at 61 since 1961. The season did not start on a high note, as Judge turned down a deal at the beginning of the 2022 season that was a seven-year $213.5 million contract ($30.5 million per year). This would have made him the highest-paid right fielder in all of Major League Baseball.

What would justify turning down a long-term deal with such a large salary? To put it simply, he thought he was worth more money. Now he will be a free agent, and it is rumored that he might get a $300+ million contract at the start of next season.

Judge’s salary was $19,000,000 this year, which amounts to $306k for each home run this year.

Breaking the home run record is a historic event in our national pastime. It was reported that Cory Youmans, the fan that caught the 62nd home run ball, could receive $2 million for the souvenir baseball.

Here are some personal finance considerations for Aaron Judge and his rather large salary.

How to play the personal finance game well

Here are six key areas of personal finance that are just as relevant to Aaron Judge as they are to you and your family.

Risk management

If Aaron Judge has an injury during the off-season, the likelihood of securing a $300 million contract would be in jeopardy. He will want to protect himself with personal insurance to hedge that risk.

In a similar fashion, if you’re married with a house and a child, you would be well served to consider a term life insurance policy. This will protect your ability to pay for your …….

Source: https://www.forbes.com/sites/qai/2022/10/09/6-key-areas-of-personal-finance-for-high-earners-like-home-run-king-aaron-judge/

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