bad transition into retirement
Bad money management/ family friend managers
Lack of knowledge
Time and Time again a story appears in the news about a retired athlete that has declared bankruptcy. Cable television has made numerous “where are they now?” or “whatever happened to…?” shows based on this very premise. So why is this issue so prevalent in today’s society, and how can professional athletes avoid this fate?
First, let’s start with how this happens. Professional athletes are consumed by their sport. Performing at the highest level against elite competition demands total devotion. While money may be coming in, athletes are too busy making the physical and mental sacrifices that keep them at the top of their game. There is simply no time to learn how to effectively manage their money.
Many times, the transition into retirement causes an athlete to endure financial struggles. Becoming accustomed to a certain lifestyle can be a hard thing to change. While an athlete may have money in the bank, their income to longer sustains their expenses. Athletes often move into new ventures when their athletic careers come to an end. These ventures range in scope, but the one thing all new enterprises have in common is a need for money.
It is important to remember that athletes retire from their sports at much younger ages than most professionals. This means they have to make their money last much longer, or find other sources of revenue. Unfortunately, many athletes depend on friends or family to manage their finances while they are busy with their career. This desire to employ someone they trust often backfires because those people are not qualified for the job. The repercussions of poor money management typically start small and begin to snowball into an avalanche.
The most common reason a professional athlete experiences financial problems is a simple lack of knowledge. As stated before, the around the clock training, constant travel, and focus on healthy eating leaves little time to worry about finances.
The easiest way to avoid these issues is to hire a reputable wealth management company. Wealth management for professional athletes requires a specific set of skills and resources. Companies like Fortis Flux Financial provide sound money management strategies while educating their clients in financial literacy.
The life of a professional athlete is physically, mentally, and emotionally strenuous. Avoiding these common pitfalls and placing your money in the hands of professionals allows athletes and their families to enjoy the fruits of their labor for the rest of their days.