From Fame to Shame in 5 years! What a sad and scary statistic for America’s professional athletes. As you will see below, this issue stems throughout all professional sports and lists the biggest pitfalls as overspending, small window of big earnings, not understanding finances (or how to actually save money), poor investment choices, and entrusting their money to the wrong people. The information below should be a stark warning for both professional athletes and financial professionals that specialize in safe money solutions. Although we normally don’t recommend annuities for a 23 year old, I can’t think of anything better for these athletes than a portion of their large earnings going into something that is safe, that will defer taxes for the next few decades, and will then start generating a lifetime income down the road.
I would be willing to bet my entire Fantasy team that if you went and asked any one of the bankrupt athletes if they would give anything to have put some money away into a long term annuity back when they were still making the big bucks, that 100% of them would have said YES!
Thanks to Mint.com for putting this eye-opening piece together.