Financial Planning for Athletes
Planning around uneven income streams, high-flying lifestyles, and large tax bills isn’t easy. Yet, with an experienced team beside you, it can help these obstacles become manageable.
Go on the Offense and Defense
While most associate financial planning as being on the offense – as in saving and planning for tomorrow – athletes should also consider what defensive moves they can make to protect their family, lifestyle, and even themselves, today.
For individuals that are the primary income earners in a household, considering life, disability, and long-term care insurance can be key in case an accident occurs. How would your family get by financially if an injury occurred and you could no longer play the sport? If you passed away, what money would your spouse have to take care of your children going forward? These are some of the tough questions your financial team should address when reviewing your overall plan to determine what next steps you should consider.
Learn to Live Off Less
As advisors, we often get asked, “How have your largest clients acquired their wealth?” While most would think it is the clients that have had the highest salaries, drive the fanciest cars, or have hit it big on certain stocks, we find that rarely is the case. Usually our clients that have disciplined themselves to save consistently over time and live within their means have the most accrued by the time they retire (and the most left when they pass away to leave to their heirs.) While that doesn’t sound glamorous or like a “quick fix,” controlling expenses is key to a successful financial future. As your financial team, we compare your income with your expenses, then find the right balance for you today and tomorrow.
Financial Planning for Athletes Resources:
- Cash Flow Analysis Calculator
- Fidelity Budget Check-Up
- Fidelity Estate Planner
- Fidelity Planning & Guidance Calculator
- Fidelity Term Life Insurance Needs Calculator
- Lifetime Earnings Calculator
- Net Worth Calculator
- Protecting Your Dependents with Life Insurance Video
- Tax-Deferred Savings Calculator
- What Would Happen to Your Estate? Video