Investing 101 for pro athletes
2014年8月21日Investing 101 Anthony Hitchens Womens Jersey for pro athletes
Pro athletes are notoriously bad investors. Once bright starts worth millions of dollars are frequently left destitute within just a few years of retirement. Put simply, these pros completely blow it when it comes to investment management. But it doesn have to be that way. Business Insider, 10 Ways Sports Stars Destroy their Finances:
The top five reasons pro athletes squander their fortunes:
Ponzi schemesBad investmentsDivorce settlementsRunning a businessDo drugsHave too many childrenUsing the wrong advisorsToo much real estateDog fightingActing dumb Quite simply, many professional athletes are new to money a lot of money and don know how to manage it responsibly. But many of these reasons they blow their money show that they live their entire lives irresponsibly. From fathering multiple illegitimate kids to dogfighting, athletes are young, testosterone pumped, newly monied and on top of their games on the field but typically spiraling out of control off.
Current solutions Professional sports leagues and players associations are trying to help. Here one example.
Financial Advisors Program: The NFL Player Association launched the FAP in 2002. The players union created the program to protect players from unscrupulous people attempting to take advantage. The program screens financial advisors to make sure they clean from a regulatory standpoint (no nicks on the U4), have some experience, carry adequate insurance, and have proper licensing.
Why they don work If the problem stems from a behavioral standpoint, an effective solution would need to target the behaviors to work effectively.
Screening fail: Obviously, this is ineffective in stopping wanton financial fraud. So what if an advisor hasn been caught for bad behavior www.cowboysnflofficialauthentic.com/authentic-ben-gardner-jersey.html or a breach in fiduciary responsibility. It doesn mean he doesn participate in such behavior.
Advisors and firms also to blame: I understand that a 20 something star doesn want to hear about curbing spending and acting fiscally responsible. Yet, the firms representing these athletes are the same ones pitching illiquid investments in startups, restaurants, and real estate. Are these firms pitching these same investments to their graduate degreed, white, CEO clients? Don think so.
Societal mores: I hate to get philosophical about these things, but what does it say about our society that creates superstar pro athletes who literally piss away tens and hundreds of millions of dollars in a matter of a few years? I not against huge remuneration in a system that rewards superstardom. It just seems so wasteful knowing that these money would last longer if you smoked it. Think of the hungry just a small percentage of the money could feed.
Suggestions for Improvement Upgrade screening: This U4 screening is a sham. Instead, why not screen actual client portfolios to see Demarcus Lawrence Youth Jersey what the adviser is suggesting? What about fiduciary responsibility? Just because the client may not be responsible doesn mean that adviser can also chuck it out the window.
Different forms of pay packages: Libertarians will hate this suggestion but like the lottery gives winners different forms of payment, team owners can do the same thing. Something like you can take 100% of your salary for each year you play. When you retire after an average of 3 years, finito. Or, like a fixed annuity, take a certain percentage of your salary now and receive the rest in a form of a revenue stream for years to come.
Financial education: Pro players are not entirely interested in learning the difference between mutual funds and ETFs. But a minimal form of learning curve must exist. Owners and coaches, agents and friends, must hammer home the basic concepts of investment management. Get role models of players who have been cowboysnflofficialauthentic.com/authentic-devin-street-jersey.html through the system who behaved responsibly and made it through with their wealth intact.
Incentives to give to charity: This is just a salvage what ever is left idea if nothing else works. If pro athletes and their advisors really are just hopeless, let create a system that somehow minimizes the waste. Incentivize athletes to give portions of their income to charitable causes. Lets not let everything go down the drain.
Get athletes back into the system: I don have the data but I have a gut feeling that those players who stick with their sport after their playing days are over fare better financially than those who don Get players involved, working with athletic organizations at the pro and college level. Keep them connected to a system that (mostly) rewards good behavior.
I don think professional athletes are a hopeless cause but I do think that the FA industry is not active enough in helping to find a solution. There is too much money at stake not to make this work better.
Pro athletes are notoriously bad investors. Once bright starts worth millions of dollars are frequently left destitute within just a few years of retirement. Put simply, these pros completely blow it when it comes to investment management. But it doesn have to be that way. Business Insider, 10 Ways Sports Stars Destroy their Finances:
The top five reasons pro athletes squander their fortunes:
Ponzi schemesBad investmentsDivorce settlementsRunning a businessDo drugsHave too many childrenUsing the wrong advisorsToo much real estateDog fightingActing dumb Quite simply, many professional athletes are new to money a lot of money and don know how to manage it responsibly. But many of these reasons they blow their money show that they live their entire lives irresponsibly. From fathering multiple illegitimate kids to dogfighting, athletes are young, testosterone pumped, newly monied and on top of their games on the field but typically spiraling out of control off.
Current solutions Professional sports leagues and players associations are trying to help. Here one example.
Financial Advisors Program: The NFL Player Association launched the FAP in 2002. The players union created the program to protect players from unscrupulous people attempting to take advantage. The program screens financial advisors to make sure they clean from a regulatory standpoint (no nicks on the U4), have some experience, carry adequate insurance, and have proper licensing.
Why they don work If the problem stems from a behavioral standpoint, an effective solution would need to target the behaviors to work effectively.
Screening fail: Obviously, this is ineffective in stopping wanton financial fraud. So what if an advisor hasn been caught for bad behavior www.cowboysnflofficialauthentic.com/authentic-ben-gardner-jersey.html or a breach in fiduciary responsibility. It doesn mean he doesn participate in such behavior.
Advisors and firms also to blame: I understand that a 20 something star doesn want to hear about curbing spending and acting fiscally responsible. Yet, the firms representing these athletes are the same ones pitching illiquid investments in startups, restaurants, and real estate. Are these firms pitching these same investments to their graduate degreed, white, CEO clients? Don think so.
Societal mores: I hate to get philosophical about these things, but what does it say about our society that creates superstar pro athletes who literally piss away tens and hundreds of millions of dollars in a matter of a few years? I not against huge remuneration in a system that rewards superstardom. It just seems so wasteful knowing that these money would last longer if you smoked it. Think of the hungry just a small percentage of the money could feed.
Suggestions for Improvement Upgrade screening: This U4 screening is a sham. Instead, why not screen actual client portfolios to see Demarcus Lawrence Youth Jersey what the adviser is suggesting? What about fiduciary responsibility? Just because the client may not be responsible doesn mean that adviser can also chuck it out the window.
Different forms of pay packages: Libertarians will hate this suggestion but like the lottery gives winners different forms of payment, team owners can do the same thing. Something like you can take 100% of your salary for each year you play. When you retire after an average of 3 years, finito. Or, like a fixed annuity, take a certain percentage of your salary now and receive the rest in a form of a revenue stream for years to come.
Financial education: Pro players are not entirely interested in learning the difference between mutual funds and ETFs. But a minimal form of learning curve must exist. Owners and coaches, agents and friends, must hammer home the basic concepts of investment management. Get role models of players who have been cowboysnflofficialauthentic.com/authentic-devin-street-jersey.html through the system who behaved responsibly and made it through with their wealth intact.
Incentives to give to charity: This is just a salvage what ever is left idea if nothing else works. If pro athletes and their advisors really are just hopeless, let create a system that somehow minimizes the waste. Incentivize athletes to give portions of their income to charitable causes. Lets not let everything go down the drain.
Get athletes back into the system: I don have the data but I have a gut feeling that those players who stick with their sport after their playing days are over fare better financially than those who don Get players involved, working with athletic organizations at the pro and college level. Keep them connected to a system that (mostly) rewards good behavior.
I don think professional athletes are a hopeless cause but I do think that the FA industry is not active enough in helping to find a solution. There is too much money at stake not to make this work better.
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