Financial Advising for Professional Athletes: No Better Time Than the Present – Part 2
We continue our series of posts dedicated to the topic of financial advising for professional athletes. This second installment of our four-part discussion addresses when athletes should start working with a financial advisor as well as the importance of certifications and experience in an advisor’s background.
When should a pro athlete hire a financial advisor? For potential MLB draft picks, they should ideally start the financial-advisement process a year in advance. That means high school and college baseball prospects should start early in talking to financial advisors in order to find someone with whom they feel comfortable. In most instances, this process will―and should―involve one or both parents.
Once players get drafted, they have very little time to start looking for a financial advisor. They often find themselves on the first flight out of town to the team that just drafted them. If proper planning has not already occurred, their money might end up sitting in a bank account until the off-season. There is so much that can be positively accomplished if a prospect starts that process a year in advance of the draft.
If you’re already playing at the Major League level, there’s no better time than the present to work with a financial advisor. This is because you’ve already established a foundation of wealth. By partnering with a Registered Investment Advisor, you can develop and monitor a plan unique to you and your family that will set you on the best course for reaching your ultimate financial goals. As I mentioned previously, there’s a lot involved in the comprehensive financial planning process for athletes. We don’t want anyone to get too far down the road where their prior decisions—which may be irreversible—negatively impact their future financial well-being.
Former ball players would certainly have an immediate need for an advisor due to the varying paths they can take after their playing career is over. The choices that are made following their athletic career could have a dramatic impact on whether they’re successful in meeting their financial goals. By having a comprehensive plan in place, they can account for their cash flow needs, retirement plans, pension benefits and risk management needs for them and their family.
Experienced Financial Advisors Provide Unique Expertise and Guidance
As a player, you should consider working with an advisor that is a CERTIFIED FINANCIAL PLANNER™ professional. An advisor with a CFP® designation can offer unique expertise and guidance that other industry professionals may not be able (or allowed) to provide. They fully understand the importance of coordinating all aspects of a player’s financial life, which is so much more than just managing money. It’s the planning—from retirement and tax planning to insurance and estate planning—that has significant impact on the future of the athlete and his loved ones.
In the upcoming Part III of this series, we’ll look at the warning signs that indicate a financial advisor may not be providing the service that a professional athlete needs.
For more information on how a financial advisor can assist you or the professional athlete in your family, contact BIP Wealth at 404-495-5230 or communications@bipwealth.com