People always say to me, “Hey man, what is up with Jeff Foster’s investment strategies? How much money does he save? Where does he invest? The guy looks like he’d have a firm grasp on financial dealings — he does have hair like a personal banker at a small suburban bank, after all — so if you ever catch wind of what he’s doing, let me know.” Unfortunately, I’ve never had that information.
Until now. Finally, for all you fans of NBA investments, here’s a rough breakdown of Jeff Foster’s portfolio, courtesy of Bloomberg BusinessWeek:
Foster now considers himself fortunate for having learned an early lesson. By the time he signed his second deal with the Pacers in 2002—six years for $30 million—he had become a much more conservative investor. Today, while he still actively buys and sells stocks, only 13 percent of his portfolio is invested in the stock market. Although Foster and his advisers declined to provide the exact amount of his savings, they did provide a breakdown, by percentage, of his portfolio. The biggest portion—33 percent—is in fixed income, largely municipal bonds. Eleven percent is invested in managed real estate—apartment buildings and student housing that provide Foster with monthly income and tax breaks without the headache of personally overseeing properties and tenants. Eight percent is allotted to private equity; 7 percent is in private investments that aren’t supervised by True Capital Management.
Foster keeps 28 percent of his savings in cash. He says he normally has 5 percent to 10 percent of his portfolio in cash, “but I’m scared of the market now, though I think at some point there’s going to be an opportunity to invest and get a great return.”
There you go, Foster Financial Forum members. It’s a simple 33-28-13-11-8-7 plan that gets less aggressive as Jeff Foster gets older. Anyone who’s taken a microeconomics course will tell you that’s the way to go.
Oh, and now that that financial stuff is out of the way, here’s a little savings tip from your favorite Foster.
“My biggest luxury expense is that I like to travel,” Foster says. “Given my size, when first class is affordable, I buy it. But we just flew coach back and forth to Texas with the kids, and I just put up the armrests and lay across the seats.”
That’s how you do it. That’s how you save money during a lockout. Get on some empty flights, put up the armrests and enjoy your snooze cruise. If you can get an exit row seat, even better. No use wasting money on first class, since those beds aren’t that comfortable anyway, especially if you’re seven feet tall.
Jeff Foster just proves that you don’t necessarily have to go broke if you’re an NBA player. Sure, it happens a lot, but if you have a team of advisers and are willing to be educated on how to save your money, you can live comfortably and get a write-up on a business website. That’s almost as cool as a murdered out Maybach. Pretty much the same thing.