Professional athletes are experts in discipline, training and goal setting. However, like many young adults, they often don’t have the benefit of getting an education in financial planning. The difference between the average person and an athlete is the influx of large amounts of money at such an early age, as well as the need for it to last much longer than a normal retirement.
Step One: Hire a Competent Financial Advisor
Far too often, there are stories of athletes making millions and trusting the wrong person to manage their money. There are even entire television series devoted to athletes who have gone completely broke. It can be tempting to ask a friend or family member to handle investments. However, this is almost always a mistake. The best path is to do your research and find a legitimate company that specializes in wealth management for professional athletes.
Step Two: Educate Yourself
The best advice for young athletes is to recognize the need for strong financial planning. Athletes are unique in that their careers rarely last more than ten years, and often are much shorter. A good wealth management advisor will start with the basics to teach you about long term strategies that allow for the type of lifestyle you plan to lead after retirement. More importantly, you need to understand the limits of spending now in order to plan for the future.
Step Three: Monitor Your Accounts and Attend Meetings Yourself
People often get into trouble when they delegate financial responsibility to another person. Make it a point to personally attend the meetings or calls with your wealth management advisor. It will give you a regular barometer of your financial status, spending needs and future comfort. It will also avoid the possibility of anyone taking advantage of your income.
Becoming a professional athlete is an exciting experience. In order to fully enjoy it, you need to take responsibility for your finances by hiring a competent and well-respected wealth management company. It will leave you with the peace of mind that your future is in good hands.