While I’m not much of a baseball fan, I am a sports fan in general and pretty familiar with Bobby Bonilla, who played for a number of teams – including the Pittsburgh Pirates and New York Mets – between the mid-80s and 2001.
I was certainly interested to recently read that while Bonilla hasn’t played in a professional baseball game since 2001, the New York Mets pay him $1.19 million every July 1st and will continue to do so every July 1st until 2035. This money is part of a deferred contract the Mets negotiated with Bonilla after the 1999 season. Instead of paying him $5.9 million that year, the Mets would owe Bonilla almost $30 million over the course of the deferred contract.
That, my friends, is a serious retirement plan and a great lesson in the time value of money. And how does Bernie Madoff, the infamous investment advisor and financier, fit into this? Spend 10 minutes with the video above to learn more.