Broker Check

Financial Planning For Athletes

A Customized Portfolio—A Proven Approach

Lavish lifestyles, big-money contracts, fame, and lucrative endorsements seem to characterize the lives of professional athletes in the eyes of the public. Indeed, pro athletes can earn in a year what an average worker can only dream about. Unfortunately, this has the effect of giving them a false sense of financial security, which causes them to trust the wrong people and consequently make incorrect financial decisions. It is, therefore, not a surprise that most professional athletes go broke a few years after retiring.

At Aileron Wealth Management, we understand the challenges professional athletes face when it comes to planning their finances. We are a financial management firm for athletes committed to helping our clients secure their financial future by creating solid financial plans. But what does financial planning for athletes entail, and why is it important?

What We Do

Many people wrongly think that those earning millions of dollars every year do not have serious financial concerns. However, the truth is that a high net worth tends to exacerbate ordinary financial challenges. At Aileron Wealth Management, we offer services to help professional athletes handle financial challenges that come with having a lot of money earned within a short period. Some of our services include:

Cash Flow Management

Cash flow management should be an integral component of every athlete's financial plan. As a professional athlete, you need to remember that the dollar amount on your contract is not the same amount of money that will land in your bank account. Expenses such as agent fees and tax will cost you a significant amount of money.

We will help you determine your actual net income to ensure that you do not end up planning for the money you don't have. We will then develop a plan that will help you determine what should go into savings and investments to ensure that you don't spend your money in a way that threatens your financial security.

Reserves Management

As a professional athlete, you need to remember that although your career is highly rewarding, it will be extremely short. In other words, your future earnings will not be as generous. At Aileron Wealth Management, we will help you develop a financial plan that will help you build a cash reserve to ensure that your lifestyle isn't affected significantly when you eventually hang up your boots.

Retirement Planning

As a professional athlete, you will retire from the sport at a relatively young age. As such, retirement should be an integral part of financial planning for athletes. Although saving in a 401(k) or IRA account might be a smart move, it is worth noting that you won't be able to access this money without penalties before you are fifty-nine and a half years old. As such, you will need to save some of your retirement money in an investment account you can access before the age of fifty-nine and a half. At Aileron Wealth Management, we will help you identify the most tax-efficient investment account for your retirement.

Tax Planning

Professional athletes are public figures, and therefore, getting at loggerheads with the IRS can negatively affect their images. This is a fact that we at Aileron Wealth Management appreciate, and are willing to work alongside our clients tax professionals to plan for and avoid.

Frequently Asked Questions about Financial Planning for Athletes

  • Why is financial planning important for professional athletes?

Although professional athletes earn a lot of money in the course of their careers, their careers are relatively short since they mostly retire before the age of forty. As such, they need a solid plan to secure their financial future since the money will not keep flowing steadily forever.

  • Do professional athletes have financial advisors?

Not all professional athletes have financial advisors. However, professional athletes need to have financial advisors to help them overcome the financial challenges associated with having a huge net worth.

  • How do athletes invest their money?

Athletes invest their money in real estate, restaurants, and technology, among other sectors. Others put their money in public securities such as stocks and mutual funds. You can trust Aileron Wealth Management to help you identify the best investment opportunities for you, depending on your financial goals.

Let's Connect!

Thank you!