Before the draft, we often hear agents and families say things like: - I don’t have any money; why should we be talking to financial advisors; - I don’t want to put the cart before the horse; or - We will just wait and interview financial advisors after the draft.
Unfortunately, statements and approaches like these lead to players losing both money and opportunities that are often not recoverable. Mainstream media, some agents, and most financial education in the United States have sent the wrong message that financial advice is just about picking investments.
Let’s look at a few important types of Financial Advice that aren’t picking investments: - Tax Planning: Taxes are the #1 Destroyer of Wealth; how much will you be paid after taxes; is there a way to structure payments or change contract language to maximize my after-tax draft bonus; are you receiving NIL money now that you need to address?
- Residency Planning: State of Residency can affect your after-tax income significantly; this is an opportunity that is lost if not handled appropriately and contemplated in advance of the draft.
- Financial Planning & Budgeting: Baseball Players are 4x more likely to become bankrupt than the average American; understanding how to avoid becoming part of this statistic by proactively planning from the beginning and not wasting your opportunity.
- Financial Education: The #1 cause of divorce in the United States are financial issues; You need to understand your relationship with money and what it means to you.
- Insurance & Risk Management: Understanding how to protect yourself from liability; do you have the proper auto insurance, umbrella insurance, disability insurance, etc. in place for what your career and life present?
- Estate Planning: Understanding your estate and how to properly manage it; what happens if something were to happen to you; can I protect my privacy by utilizing a trust?
- Real Estate Planning: Purchasing homes, renting out properties both as the owner and the person leasing, and disposing of properties.
This list could go on with numerous other activities that are financial advice that aren’t limited to just buying and selling investments. As you can see, there is plenty of financial advice where expert help is needed BEFORE the draft to maximize your opportunity and truly understand the decisions you are making.
You are different from 99.95% of people in the United States…don’t you think you should also prepare differently?
You found an agent because you believed they were the best person in the world to help maximize your draft contract, you work out with the best trainers available, and you would see the best doctors in the world to protect your career. Why would you do anything differently on the financial side and leave it up to chance?
This is both a business and financial decision, and you need to surround yourself with the most qualified people so that you can maximize your opportunity.
