Your clients are athletes. They have been preparing for a career in the sport they know and love for years and years. What else have they been preparing themselves in life?…nothing! Not unlike any other career path, they want to be the best they can be and have been thinking of nothing more. Educating them and advising them to do their homework utilizing the following methods, is essential.
A) KNOW YOUR RETIREMENT NEEDS: Retirement is expensive. Experts estimate one needs 70% of pre-retirement income for lower earners, 90% or more to maintain an athlete’s standard of living. Have your clients understand their financial future.
B) FIND OUT ABOUT SOCIAL SECURITY BENEFITS: Social Security pays the average retiree about 40% of pre-retirement earnings. Although, for a 25 year old individual, many question whether future social security benefits can be relied upon, one should call the Social Security Administration for a Personal Earnings and Benefit Estimate.
C) START NOW, SET GOALS, AND STICK TO THEM: Start early. The sooner they start saving, the more time their money has to grow. Put time on their side, not against them. Make retirement saving a high priority. Set goals, devise a plan, and stick to it. It’s never too late to start.
D) CONSIDER BASIC INVESTMENT PRINCIPLES: How one saves can be as important as how much one saves. The types of investments play an important role in how much they’ll have at retirement. Make sure they know how their pension or savings plan is invested. Financial security and knowledge go hand in hand.
E) ASK QUESTIONS: These tips can point your client in the right direction, but they’ll need more information. Have them talk to their employer, their bank, and their financial advisor. Have them ask questions, and make sure the answers make sense to them. Athletes may not have total financial acumen, but common sense should tell them right from wrong. Tell them and help them get practical advice and act now.
Disclosures. The information contained herein is neither an offer to sell nor a solicitation of an offer to buy any security. Past performance is not a guarantee of future results. Further, the information herein is intended solely to provide general information and does not constitute a promotion of any offerings or products. Donald J. Kushner is an independent financial advisor with Arque Capital, Ltd., and does business as DK Sports Financial. Arque Capital, Ltd., and DK Sports Financial are unrelated entities. Securities offered through Arque Capital, Ltd. 7501 E. McCormick Parkway, Suite 111 North Court, Scottsdale, AZ 85258. (602) 971-9000. Member FINRA/SIPC. Any unauthorized reproduction of this information is strictly prohibited.