There are several critical differences between an athlete and non-athlete client that must be considered when developing and executing a financial plan.
- Uncertainty – Athletes can have their careers taken away by injury or change in the organization’s direction. This means that there is no guarantee that an athlete will have any income beyond the life of their current contract.
- Short Earnings Life – Athletes statistically earn 90% of their income by the age of 35 years old. Unlike a non-athlete who has to use their savings to fund 20-30 years of retirement, an athlete has to have a “nest egg” that will support 50-65 years of retirement.
- Luxurious Lifestyle – Athletes are most susceptible to the “keeping up with the Jones’” mentality. There is a wide range of earnings among members of every team. Often times a young player that is making a fraction of his peers will try to live the same lifestyle as their peers. $1million can be spent very quickly without the appropriate budgeting and plan in place.
- High Profile Life – Athletes are some of the most recognized people on the planet. An athlete will be a target of fraud, charitable requests, “new” friends and family, and misperception. The proper insurance policies, identity shelters, and business advisors must be in place to help shield the player and his family from the negative effects of a high profile life.