FINANCIAL PLANNING FOR ATHLETES
1. Athletes are unique
2. Financial planning for athletes
What is this guide all about?
This guide seeks to educate athletes on how to create wealth through a smart, safe, and achievable financial plan.
This guide encourages athletes to first and foremost invest in themselves. This means preparing for their second career after sport. Educating themselves around financial literacy to be able to make smart decisions around money. Investing time and money into the food, training, equipment that will enhance their performance. It also means building their own brand through public speaking, media training, and avoiding scandal.
After investing in yourself, you should invest in your home. You will also need to invest in assets that will either appreciate in value or produce an income to support you. The more assets and income you can achieve in your sporting career the more choices you will have after your career. These assets will basically be either shares (business), real estate (property), or fixed interest (bonds).
This guide also looks at how the returns of your investments will be a lot better if you use the right structures. This includes companies, trusts, and self-managed superannuation funds.
In a traditional sense, this guide advocates a long-term investing approach based on evidence and academic research. This approach is about planting the seeds for a tree to grow that will bear fruit in a decade. So it requires discipline and patience to carry it out.
This guide looks at the different stages of an athlete's life amateur
It will show why athletes should avoid expensive fund managers and the financial institutions that support them.
This guide looks to examines how an athletes income is high and unstable. Will also look at the special tax rules like income averaging and income splitting of image rights.
Throughout our history, war has been the primary form of competition between peoples and their nations. War is so much part of history, it is embedded in our DNA. However, in the modern era of peace between more developed nations, sporting competition has come to replace the brutality of war. If you stop to think about how team sports are organised you can see the similarities. Teams in a league are usually divided into territories or tribes. Each team has it's own emblem or sigil that represents that team. These teams meet on a chosen battle ground to compete.
There has never been a better time in our history to be an athlete. In our society athletes are raised to the status of demi-gods, similar to that of the mythical heroes of old. Think of athletes like Muhammad Ali defeating George Foreman, Carl Lewis to Usain Bolt, Sir Donald Bradman, Wally Lewis, Ian Thorpe, Dawn Fraser,
They are the personification of strength, speed, endurance, excellence, and all the qualities that we would aspire to possess. For that reason an athlete is not just paid for playing the game in his chosen sport but also through sponsorships and endorsements by businesses and their brand who want to associate themselves with same qualities of the athlete. People, businesses and their brands want to bask in the glory.
This first chapter seeks to explain why athletes are in the fortunate position they are in. It hopes to give them an understanding of the sports they compete in and what drives the income of athletes.