Bobby Bonilla Day and the Value of Annuities

In this episode, we explore the economic concepts behind Bobby Bonilla Day, when the former MLB player annually receives a $1.19 million check from the Mets even though he hasn’t been on the roster since 1999. We unpack how deferred compensation works and whether the Mets’ decision makes financial sense. We dive into annuities, interest rates, and the assumptions that shape financial decisions. Using behavioral economics and finance concepts, we ask: Was this a smart move for The Mets and for Bonilla, and what lessons can we take from it?

In this episode, we discuss:

* Why the...