After a successful 12-year NBA career, Troy Murphy went back to school, earned his degree and is now starting a financial advisory firm. Why? To teach those lucky few who experience sudden wealth to manage their money effectively, from establishing a spending plan to creating model portfolios with low-cost index funds. Troy shares how he managed his first professional contract, some of the highlights of his NBA career and what motivated him to start his new firm. Troy describes the unique structure of his firm and how he plans to use ALL of the profits that it generates. Enjoy! 

Details:

• 0:00~2:19 Introduction
• 2:19~6:21 Early lessons about money
• 6:21~12:48 Troy’s basketball career
• 12:48~14:16 Picking an agent and his first contract
• 14:16~19:05 Figuring out the finances
• 19:05~22:57 Navigating through the NBA
• 22:57~25:54 Financial problems from ‘sudden wealth’
• 25:54~27:14 Shortcoming of rookie transition programs
• 27:14~27:41 A word from NGPF
• 27:41~29:01 Becoming a student at Columbia University
• 29:01~30:41 Learning more about finance
• 30:41~36:33 Starting Sweven Wealth
• 36:33~39:44 Funding high school financial literacy projects
• 39:44~40:55 Conclusion

Resources:

• Sweven Wealth
• Troy Murphy on Yahoo! Finance
• Kerri Herrild’s “The Giving Project”
  • Kerri on the NGPF Podcast
• Dan LaSalle’s Philly Finance Collaborative
  • Dan on the NGPF Podcast
• Former Golden State Warrior, Set for Life, Advises the Newly Wealthy for No Pay (The Recorder)

Quotes:

• “We are going to look at the budget first because you have to get a handle on that. The issues you are going to have is overspending and making bad investments and one leads into the other. If you overspend, it’s going to leave you reaching to take risky investments.”  

• “Financial literacy is an essential skill to have. As a young person, the ability to effectively navigate the financial marketplace is huge.”

• “If you get kids that are around high school age that are in the time of their life where they are going to be making important financial choices.. and being able to make good choices and understanding what they are getting involved in is crucial for their future. You don’t want them to be fighting against the current for the rest of their lives.”

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

More posts by Tim