I just got drafted. Now what?

The 30-second answer

Your rookie year is six money decisions, in order: reserve 40%+ for taxes, freeze all big commitments for 90 days, build a team of separately paid professionals, set a written family plan, fix a lifestyle number that survives a zero-income year, and put the protection layer in place. Get these six right and almost nothing can ruin you. Skip them and almost nothing can save you.

The six decisions

1. The tax reserve: Before anything else, park 40%+ of the signing bonus for federal, state and multi-state taxes.
2. The 90-day freeze: No major purchases, family commitments, or investments for 90 days.
3. The team: Fiduciary advisor, CPA and attorney: separate people, separately paid.
4. The family plan: Decide in advance what you give, to whom, and how.
5. The lifestyle number: Set a fixed monthly spending amount that survives a zero-income year.
6. The protection layer: Emergency fund, disability insurance, and insurance on the things you now own.

Pam's take

The draft is the last day anyone hands you money for potential. From here on, structure decides what the contract becomes.