Salient to Investors:
From March 2011 to March 2012, over 1 million people in the US filed for bankruptcy. The underlying problem is the inability to stop spending and start planning for retirement.
Many athletes go pro right out of high school or college so have no real world experience managing money or setting financial goals. Financial “advisers” can take advantage of this lack of financial knowledge and inability to keep track of their large bank accounts. Many athletes invest in restaurants, real estate or other unstable market ventures, instead of putting that money into a retirement account with a balanced portfolio.
$5 million a year after agent fees and taxes can leave only $2 million to spend.
Professional athletes can easily overestimate the length of their careers, which can be cut short by injury or numerous other factors.
Solution: have a sound retirement plan with clear financial goals, and employ a trustworthy financial adviser.
Read the full article at http://www.marketwatch.com/story/why-do-athletes-go-bankrupt-2013-05-13
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