We have all read the stories and we have all found them hard to believe….famous professional athlete files for bankruptcy five years after retiring. How is that possible, we ask? How can an athlete make tens-of-millions of dollars, even hundred-of-millions, and be broke so quickly? Where is their financial security?
Professional athletes live in rarified air, air most of us will never breathe and consequently we will never understand the pitfalls that await an athlete who is not prepared for sudden wealth.
Retirement can be filled with many financial traps and quicksand, and it is easy for a professional athlete to make some mistakes in planning for the future. Let’s take a look at a few financial considerations that must be faced.
…..Consider that a professional athlete will only play, on average, five years. During that five years, he/she must make enough to take care of fifty or sixty years of retirement. Remember that the money you make now must last decades, or must earn enough for you to live comfortably for decades. With that in mind, athletes must learn to not live beyond their means, they must learn to maintain a budget and they must have a long-range savings plan.
…..If you qualify for the pension plan in your sport, remember that the longer you wait to use that pension, the more benefits will be available when you do need it.
…..Beware of scams. Your millions of dollars in income is mighty attractive to those who prey on the unsuspecting. There will always be attractive investment plans offered to you. Make sure you do your due diligence and have all investment opportunities properly vetted.
Yes, there are many horror stories about retired professional athletes who have financial difficulties, but there are also thousands of stories of athletes who have prepared for the inevitable and are financially ready for retirement. Take the steps now to assure you will be one of those ready for the future.
Sports Relocation, Inc. Sports Relocation, Inc assist players/coaches of all professional sports leagues including the NBA, WNBA, NFL, MLB, NHL, and entertainers relocate nationwide by servicing their Real Estate & Relocation needs. Ikem Chukumerije is licensed to practice real estate in New York, California, Nevada, Florida, & Georgia. Sports Relocation, Inc operates nationwide and provides elite athlete relocation services in all 50 states and internationally.