Athletes are a special breed. Success comes more often than not at a young age and with a very large paycheck. For them to succeed in the management of their finance there is a lot that needs to happen.
In this series, I will start sharing some tips that I have learned in my career that have helped athletes as well as High Net Worth individuals to stay in the green and out of tax trouble.
- Plan, Plan, Plan
Young people live in the now. Successful young people are no exception. Having a healthy awareness of the risks and possible downfalls is very important. Athletes know that they have a young career cycle, however, their planning many times does not coincide with this awareness. Just the basics of putting money away, analyzing contracts and living within their means goes a long way.
- Don’t let taxes go to the back burner
Smart athletes know that the talk about taxes comes when negotiating deals. A good deal is always structured with payments over time and has tax implications in mind.
- Get a good team of advisors, not necessarily your relatives or friends
Everybody will turn to their best friend, uncle or brother for advice. But they are not always the most trained in money and finance. Look for the best professionals out there, consult and evaluate your options.
- Don’t put all your eggs in one basket
The number one fallout for athletes is real estate purchases and bad business investments in “opportunities” that friends or relatives have introduced for them.
- Read documents! (Or have someone read them for you)
Just like lottery winners, there are a lot of sharks out there going after athlete’s money. It is not unusual to see huge financial fallouts just from documents that went unread by the athlete or their trusted advisors.