Bobby Bonilla should be an example for all working stiffs.Thanks to his shrewd negotiation and salary deferral, the Mets send a $1.2million kiss in the mail every July 1st.In 2000, the Mets wanted him to be bought out of his contract. Instead of paying his $5.9 million final payment upfront, he chose to defer payments. He received $1.2 million per year starting in 2011, and continuing until 2035 when he will be 72. Total payments: Close to $30 millionThe Mets hedged the risk by investing the money in 2000 with a New York money manager who had a great reputation for making big, steady returns.His name is Bernie Madoff. Bernie Madoff. Oops.The Mets could have made things easier for themselves, like all hedge-fund investors. They could have made a better investment by investing that money in two mutual funds: Vanguard Global Equity VHGEX, 0.499%, and Vanguard Bond Index Funds (VBMFX), which would have brought them 8.3% per year. That's more than enough to pay Bonilla.Oops!Bonilla is getting paid more than many active players, even though he hasn't bat professionally since 2001.He did three things right when it came to his retirement.He was the first to excel at what he did and maximize his income. He made the All-Star cut six more times.He decided to second think about his future and instead of taking his last years salary upfront, he deferred it.The third option was to defer it at an attractive rate of interest8% per year.Okay, few of us will be All-Star baseball players or make millions each year.However, we should not forget about Bobby Bonilla when we retire. Many of us should plan for 20-30 years after we retire.The steps are quite clear.Maximize your income by doing everything possibleYou can defer as much as you want through 401(k), IRAs, and other savings accounts.Hold on to your money for high returns.
