Sports & Entertainment

Failing to plan is planning to fail!

A Sports Illustrated article reports that 78% of NFL players and 60% of NBA players face serious financial hardships after retirement. Across the three major American sports (MLB, NBA, NFL), the average career length is about 4.6 years. [1]. Prudent planning for this windfall is critical!

This is a pre-windfall situation, one that you’re aware of the coming event and have the opportunity to prepare for. If you prepare yourself here like you prepare yourself on the field, your success will follow.

Action steps:

#1. Contact a financial windfall expert asap. The sooner the better. You might even have enough time left to design and structure the event that maximizes your gains and minimizes a substantial taxable event. We recognize unique scenarios and are able to recommend a team of consultants such as CPA’s, Tax and Estate Attorney’s to help.

#2. Don’t make any major purchases right away. Consulting with a financial expert asap to get a handle on the tax implications and start discussing a plan.

Reference: [1] Sports Illustrated

Frequently asked questions

How does sudden success in sports or entertainment impact financial planning?

Sudden success in sports or entertainment often brings substantial wealth quickly. Financial planning becomes essential to manage newfound assets, create long-term strategies, and protect against the unique challenges and uncertainties in these industries.

What challenges do individuals in sports and entertainment face with sudden wealth?

Success in sports or entertainment can lead to rapid financial changes, but it also comes with challenges. Managing a hectic schedule, dealing with a high-stress lifestyle, and navigating financial obligations require careful planning. A dedicated financial advisor can help address these challenges.

Why is it crucial for sports and entertainment professionals to have a financial advisor?

Sports and entertainment professionals often operate within a team, but a dedicated financial advisor is crucial for individual financial planning. They can provide personalized guidance, help manage the demands of a high-stress career, and assist in making informed financial decisions.

How can financial planning help sports and entertainment stars avoid common pitfalls?

Financial planning is instrumental in avoiding common pitfalls such as overspending and financial mismanagement. By working with a financial advisor, sports and entertainment professionals can create a robust plan, protect their wealth, and build a sustainable financial future beyond their peak earning years.



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