Shaq made a backup plan in case he lost his fortune. He says it'll pay him $1 million a month next year
A plan for future income
O'Neal said he purchased an annuity to provide a fallback if his investments did not work out. The insurance product turns a lump sum or a series of payments into regular income, often during retirement.
Asked about the amount, he said he expected to receive $1 million monthly at age 55. He said those payments would begin next year.
Advice changed his habits
O'Neal recalled a man demonstrating his financial advice with a napkin, dividing it into quarters. The man told him to spend 25 percent and save the remaining 75 percent.
O'Neal said he started saving aggressively after that conversation. He was 20 when he once spent $1 million in a single day.
Google investment recalled
O'Neal also spoke about a stranger he met in a hotel lobby who encouraged him to invest in Google before its public offering. Google is now part of Alphabet, and O'Neal described the investment as a major success.
He joked that his 2009 divorce cost him the gains from that investment. In another remark, he said people need bachelor's and master's degrees, as well as two or three degrees, to reach wealth.
Key points
- O'Neal says an annuity is set to pay him $1 million a month starting next year.
- He bought the product as protection if his investments failed.
- A man's 25-percent spending and 75-percent saving advice prompted O'Neal to save aggressively.
- O'Neal recalled investing in Google before it went public and joked about losing the gains in his 2009 divorce.