If you are smart with your money oh yes it can.
I'll give you a hint. Set up an S-Corp have your wages paid to the corp as opposed to you. Set a pass-through for distribution just for you while deducting EVERYTHING as a business expense (because you are in an essence a traveling contractor as a coach)
You will only be taxed on what you pass through. Have the rest invested in stuff like
Barclay's CDs
For example if it was me I could be like. Okay I can live off of 75.9 k in Pullman. That's plenty That's what I set my distribution at and then I am only taxed 15% (which with deductions I can get rid of)
Of my 291k I now have 215.1 k that I hold in the S-Corp and invest in the barclays CDs that have a 2.4 interest rate if I want to be ultra conservative which have a 60 month maturation (5 years) just putting 200k in that every single year yields 225k on maturity after 5 years.
So do the math.
200k in 2012 matures to 225k in 2017
200k in 2013 matures to 225k in 2018
200k in 2014 matures to 225k in 2019
200k in 2015 matures to 225k in 2020
200k in 2016 matures to 225k in 2021
200k in 2017 matures to 225k in 2022.
And that's how you have 1.2 million dollars all not taxed maturing interest while you are paid 75.9k 15% income tax during the time.
Now already some of the CDs start to mature so those can be repurposed all over again. You can start to repurpose them as needed by let's say you take the 225 matured in 2017 and add it to the 225k in 2018
That's 450k in liquid that you can then repurpose in CD. It will mature in 2024 for a cool 507k
You do the same thing over and over again 19/20 combine and mature in 2026 for 507k
21/22 mature in 2028 for 507k
So basically in the next decade, you let it all mature in 2028.
You sit with 1.7 million in 2028. No risk. No taxes on it, while you are paying taxes of just 15% on your pass-through of 75.9k
(Keep in mind this is just WSU salary he is getting paid at Texas Tech which he could continually add to it)
McGuire is about 36 years old today. So at 46 years old he can have an S-Corp with 1.7 million (not adding anything else to it) matured in 2028.
If he wants to go hard he can take that 1.7 at 46 years old and double down for 2 more 5 year CD runs turning it into 1.9 mill at 2033 and by 2038 the S Corp is holding 2.16 million bucks.
All while he is being paid at the 15% taxable earnings on just 75.9k.
This is just a conservative way to invest and turn his salary into a big return. This is just what he was making at WSU over a 6 year span. 200k / year to 2.16 million in liquid. If he works as a coach making just 75k he can keep it all rolling on itself.
Now with that money at 56 he can invest in real estate, he can do a lot with it. Travel the world.
He still made 80k from the S-Corp for his personal income during the time frame. Paying a fraction of the income tax on what he was earning
And
75-80k is exactly in the sweet spot for happiness.
So in a 25 year span or so he can have 2.1 million with just what he's made at WSU if he's smart.
That's not "Wild investments, or stock market crazyness. It's just high yield CDs at a reputable bank)
The fact that you have all these NFL players / sports people etc. go broke is absolutely ridiculous. You don't need tons of cars or bling or all that junk. You need your money working for you making you more money, and then a way so you don't get taxed for it.