Kevin, with the help of a strong family -- and also, I would like to think, a small assist to my book, Money Players, is thinking ahead. Way ahead.
Here's a great exchange between Kevin and Los Angeles Daily News writer Brian Dohn:
"Kevin Love was explaining how he isn't going to burn through the millions of dollars he is about to earn. He was discussing putting aside part of his paycheck in a long-term tax-deferred account he could use 'in like 40 years,' although he couldn't remember the name. 401k? 'That's it,' said UCLA's former All-American center."Note to Kevin: Turn to page 91 of your copy of Money Players:
Your league provides a 401(k) retirement plan. Participation in the 401(k) is voluntary. You contribute to it (through a deduction from your paycheck) up to the maximum allowed by the federal government ($15,000 in 2007). Now comes the amazing part. Your professional league matches your contribution, dollar for dollar, up to a specified limit...In the NBA, teams match 140% of the players’ allowed contribution. If a player puts in $15,000, the NBA team contributes $21,000. You should love this game.
Note the 2008 maximum is $15,500.
Participation in the NBA's 401(k) program is a “negative election.” Translation: players have to opt out rather than opt in. Don’t opt out!
These are heady times for any 19-year old entering the NBA (or any 22-year old for that matter), but Kevin is doing the right things on and off the court to maximize his professional career and also secure his financial future.