As an aspiring athlete, being drafted into a national team is both a dream come true and a sure money maker. But like all humans, pro athletes get old and retire too, some earlier than others. When this happens, many athletes feel like they have been left in the cold and clueless about moving on with their lives.
The average length of a career in professional sports is between three and six years. In that time, most athletes don’t consider the possibility of losing their careers and the money that comes with it until it’s really over. And they are left to wander mindlessly afterward.
It’s written in history how many athletes have blown through their accumulated wealth after two years in retirement, forcing them to file for bankruptcy or struggle under financial distress. This is because they fail to take financial literacy into account in the midst of enjoying the highs of the pro athlete life.
The transition from being a pro athlete to a normal person with a regular-paying job can be difficult, especially if they have gotten accustomed to a certain way of life. Athletic success often comes with a boatload of money that athletes are unprepared to handle, and they don’t realize the importance of having multiple income streams until their main source starts to dry up.
Invest in Properties
One of the best ways to use your hard-earned money is to invest it in a property that you can turn into a passive income stream. You can buy commercial land, building, or house that you can rent out to prospective tenants, and begin your portfolio of properties from there.
Of course, there’s always the temptation to buy a new home or land for yourself. Many athletes have multiple homes in different parts of the country or abroad for vacations. However, owning properties that can earn you money is more practical than having homes sitting vacant for most of the year.
If you have no experience managing such an investment, you can find someone who can do the work for you. There are plenty of rental property management services that you can partner with to handle everything about your investments.
All you will have to do is oversee the transactions, agreements, and contracts as you watch your property manager make the most out of your investment. They can handle the tenant screenings and vacancy listings, collection of rent, maintenance, and repairs, as well as analyze the rent growth potential of your property.
Start a Business
Many retired athletes have chosen to pursue an entrepreneurial path after their sports careers, and a lot of them have succeeded tremendously. It is a known fact that the actual length of a career in sports is short, but what athletes do after they have retired is what matters.
Some of the most popular names in sports are now business tycoons with their own empires, taking the competitive spirit they had in the courts or fields to another arena: the business industry. Nothing is stopping you from establishing a business yourself to have a financial safety net after retirement.
Whether it’s by banking on your existing deals with brand endorsements, owning shares in a sports team, beginning your own line of merchandise, or penetrating a completely different industry, pursuing a business is always an excellent way to grow your money.
Hire a Wealth Manager
Having an expert managing your wealth as you focus on the ball game is arguably one of the most important factors in handling your finances. With a good wealth manager by your side, you can rest assured that you aren’t wasting away your money by living an extravagant lifestyle outside of your means.
Many retired athletes go broke a few years after their retirement because they lack the financial acuity that they would need to grow their money. When the money stops flowing freely from their contracts, and they are forced to sell their accumulated assets to make ends meet, only then will they begin to wonder what they did wrong.
However, by having a wealth manager who can put your interests before their own, you will have an assurance that despite your ability to live freely now, you won’t be suffering in the future. As you allow your manager to handle your finances, you can also pick up a thing or two about the process.
If you’re a professional athlete, you have to remind yourself that your career in sports won’t last forever. All that fame, glory, and wealth can disappear in the blink of an eye if you don’t take matters into your own hands. So while you’re at the top, consider investing in your life after the ball game so that you won’t have to forgo your current lifestyle.