We’ve asked you how much your friends affect your finances and your investments and cautioned you against relying too much on experts for financial planning advice but that doesn’t mean you can’t learn from others. Former NBA player Adonal Foyle is on a mission to help other athletes transition into their retirement from sports in good financial shape. You may not be an athlete but may still make some of the financial missteps Foyle discusses in his book Winning the Money Game: Lessons Learned from the Financial Fouls of Pro Athletes and in an interview with NPR.
Like many of us, NBA players are lacking in financial literacy. But unlike many of us they have the opportunity to make large amounts of money. The problem is that without financial planning advice, many athletes end up in financial crises just as non-athletes do.
Living in luxury: With large salaries, it is not difficult for NBA players to buy luxury items such as opulent homes for themselves and their loved ones. But when they buy these large homes, they aren’t thinking about maintenance and taxes. Don’t many non-athletes end up in the same position—buying a home and only considering the mortgage and forgetting about the other costs of home ownership?
Speaking of taxes, Foyle shares that professional athletes end up paying taxes in the different states where they play…without adequate professional guidance, this can lead to confusion and financial trouble.
Money mindset: Foyle wants to help his fellow athletes change how they view money. He remembered people getting angry with him for walking away from a multimillion-dollar sports contract but to him, the money wasn’t his because he hadn’t earned it. He remembers his grandmother who had very little but managed somehow and says, “…money cannot be the determinant of who you are.”
You don’t need an athlete’s riches to seek financial planning advice. A Fee-Only planner like Claire Emory, MBA, CFA, CFP, gives guidance grounded in a holistic approach to your financial future.