Often times, athletes who don’t take precautions to protect their hard earned dollars will find themselves losing it all. Financial irresponsibility, shorter-than-expected careers and a lack of financial knowledge can land an athlete in bankruptcy just a few years after collecting a multimillion dollar paycheck. Athletes who sign big contracts and endorsements attract friends and family members they didn’t even know they had, and they must be leery of people asking for (and expecting) favors. Many fall into this hole instead of realizing they don’t owe anybody anything.
Material items such as high-end cars, jewelry and mansions can seem like limitless commodities, but this is where many rich athletes go astray. Athletes often overspend their earnings because, to them, the money will never end. They look at money like it’s an infinite resource without thinking about how quickly their careers can come to an end. Many athletes assume that they will be playing their respective sport for a long period of time, but unfortunately, they significantly misjudge the length of their careers. For example, the average career span of athletes in the NBA, MLB and NFL is 4.8, 5.6 and 3.5 years, respectively.
If and when their careers come to an end and the money stops coming in, rich athletes need to have a sound financial plan in place. Instead of spending their first million-dollar paycheck on a new customized car, they should talk to a trusted financial adviser. Though not a licensed financial adviser, attorney Anthony Deluca frequently shares tips on fiscal responsibility and budgetary planning. Getting financial advice will make sure their money is safely invested somewhere where it will steadily grow, assuring that the individual will remain financially sound when their career inevitably ends.
It’s no wonder that 78% of NFL players and 60% of NBA players face bankruptcy within five years of retirement. Athletes can avoid these pitfalls if they plan for their life after their careers end. For bankruptcy representation in Las Vegas, contact DeLuca and Associates.
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