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Tiger Woods and the Billion DOllar Pension

C

Caledfwlch

Guest
Have you guys seen this in the news? Under some new pension scheme, Woods is set to retire to a $1,000,000,000 payout. That's abosolutely disgusting.



1) Where the hell is the sports in golf?
2) It should be against the law when so many others are dying of hunger bla bla bla
3) He'd have more money than me!





:%#%#: :rahh: :ranting: :wall:
 
M

melon

Guest
What I want to know is, why on earth is he getting a pay out in the first place?!

EDIT: Here's the explanation
So how does Tiger end up with a billion?

If you are lucky, you have an employer who offers some percentage of matching contribution for your individual retirement account. If you are really lucky, you have a guaranteed pension plan.

If you are Tiger Woods, or any PGA Tour pro, you redefine what others consider lucky.

Woods, the world's greatest golfer has the world's greatest employer funded retirement package. How great?

If Woods keeps winning at his current rate, enjoys a nine percent annual return and captures just seven FedEx Cups in his career, he could reach $1 billion in retirement payouts courtesy of the PGA Tour Inc


First off, based on the old plans, Woods already had an estimated $300 million in post 60-year-old payouts coming to him according to Golf Week. However, those plans have changed and now will generate less money.

On the other hand Golf Week was estimating using an eight percent annual return. Three separate financial planners we spoke with said nine percent was more than reasonable for Woods since even though the PGA funds the account, he controls it. That means he'd have constant, high-level attention paid to making it perform. He'd likely do better than even the Standard and Poor's average of 11.3 percent.

In the end, our planners, under orders to remain conservative, stuck with nine percent and believe that the original Golf Week estimate should hold up at about $300 million.

The new plan is where the big money is, however. The FedEx Cup has confused fans and players alike. But competitively everyone agrees that since the title is based on mostly consistent, year-long dominance, for the foreseeable future, Woods should win it anytime he wants. He barely wants to this year and he's the heavy favorite anyway.

So let's say Woods were to play at a dominating level for the next, say, decade. He will probably go far longer, since top players routinely compete into their mid-40s and Woods is (and likely will be) in the kind of phenomenal physical condition that should defy the aging process.

But for arguments sake, we'll have him drop off around then. Let's even argue that he doesn't finish in the top 70 in any year he doesn't win (although a second place in, say, 2009 is eventually worth $31.1 million to him). In reality, Woods will be high in the money, if not the winner, for a long time to come.

So how many can he win?

"I think seven is very reasonable," Ogilvy said. Fine, seven it is. We'll fan it out over the next 11 Cups, which means an estimated approximate retirement worth of:

2007: $123.1 million
2008: $112.9 million
2010: $95 million
2011: $87.2 million
2013: $73.1 million
2015: $61.5 million
2017: $51.8 million

That totals up to $604.6 million when he is 60.

At this point, according to PGA Tour spokesman Bob Cook, Woods would have to start making withdrawals that would empty the account in five years. The payments are made monthly based on a yearly recalculated number. The decreasing money, however, will continue to accrue interest during the 60 months and will earn an estimated additional $114.7 million, according to Morgan Stanley's Yellen.

That gives Woods $718.7 million in FedEx Cup money alone. Add on the $300 million in payouts from the other, original pension plans and you have $1,018,700,000. And this is a number Woods can easily shatter in any number of ways – more victories, longer career, better investment performance.

So there's your $1 billion. All from an account Woods never had to contribute a cent too. Woods was unavailable for comment Tuesday, but he's long maintained he pays little attention to his PGA retirement.

Of course, if the billion doesn't hold him over, he always has Social Security, which for someone Woods' age will kick in at 67 in 2042. How much will that be worth?

"Probably about $2,066 a month," Yellen said.

So he's got that going for him. Which is nice.[/b]
 
R

Ripper

Guest
Have you guys seen this in the news? Under some new pension scheme, Woods is set to retire to a $1,000,000,000 payout. That's abosolutely disgusting.



1) Where the hell is the sports in golf?
2) It should be against the law when so many others are dying of hunger bla bla bla
3) He'd have more money than me!





:%#%#: :rahh: :ranting: :wall:

[/b]



Back to the Hippie Commune Pothead.



Chances are the PGA Tour has made much more off Tiger.
 
J

Jimellow

Guest
I think Tiger Woods is the most recognizable athlete since Michael Jordan.

One one hand, the large amount of money he takes in is ridiculous, but on the other, it's nothing new. Athletes and entertainers are often in the top tier on the social/wealth ladder. It doesn't really make sense, as their jobs are far from "important," but people pay their salaries in the form of tickets and merchandise sales, so I guess they can't complain too loudly.

I tend to think that there is a point where the salaries of these athletes and entertainers starts to get ridiculous, but they will continue to get higher and higher. Alex Rodriguez is coming up on a new contract, and all indications are that it will pay better than his record setting $250 million deal he signed years ago.
 
C

Caledfwlch

Guest
Some nutcase sniper should take him out right now! :%#%#:

He shouldn't even be paid a pension with the kind of money he makes.
 
S

shtove

Guest
Poor old Tiger. Compared to investment banking and other ridiculously high earning careers, he's actually earning honestly from what people are genuinely willing to pay him. And he is by far the outstanding player in a field where equipment and accessories sales dwarf other sports. There is nobody to compare to him in, say, soccer; and then think of how much more a golf supporter forks out per annum than a soccer supporter. Golf generates massive turnover, and he is its king and emperor.

Then Tiger invests his money - - and in the end the investment pays out. With that kind of return, he'll probably give a lot to charity rather than to the taxman. It's the American way.
 
R

RC

Guest
Good on him i say. Everyone who loves golf loves Tiger and that's because he's a remarkable sportsman, an amazing talent and a great role model in the game.
Money is getting out of hand these days, for professional sportspeople, but you can't blame the players. If they take adavantage of the situation then good on 'em.

I doubt anyone here would do any differently if they were in Tigers' shoes.
 
G

goranski

Guest
no one is worth that much

unfortunately the nature of the situation is that golf is backed by the upper strata of society - CEOs, Multinational Corporations, etc. who have ridiculous amounts of capital invested in these tournaments and players

in many ways it's wrong that "athletes" like Woods are overpaid, yet they are only the pawns in many ways those at the head of sports organizations and those with broadcasting and marketing rights are the ones that are the most disgustingly overpaid
 
R

RC

Guest
I don't understand why you had to put the word "athlete" in speech marks when in reference to Mr. Woods.
Is this one of those arguments that golf isn't actually a sport again?
Because that ended badly for those who believed that was true.
 
S

shtove

Guest
Remember that ad where Tiger does keepy-uppy with the ball on the face of the club, the amazing hand-eye co-ordination? That's what makes an "athelete". Power is just about hard work, but quick wit is a gift.

Hedge fund gamblers can make a lot more than this guy, and the only talent they have is MASSIVE bullshit and a f***-you attitude. Put your complaining power to work on those ********. And on the lawyers who protect them.
 
R

Ripper

Guest
Chances are that Tiger Woods regime and work ethic put that of anyone else's in any sport to shame - let alone any of you no names, if it's so easy, why don't you go out and do it?

Tiger Woods is just getting a cut from what he earns, his value to the sport of Golf is much more than the 1 Billion or whatever he will be earning.

Some nutcase sniper should take him out right now!

He shouldn't even be paid a pension with the kind of money he makes.[/b]

Kind of amusing that your sporting the signature of an overhyped teenager who is probably about to earn more than many of those small starving African countries you seem to care so much about.

And you do know that Communism has failed right?
 
C

Caledfwlch

Guest
Course I do. $10 million sponsorships are fine with me, just not $1 billion pensions. I'm a abstard that way. Wow, Woods could afford diamond dentures when his teeth go.
 

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