Sports Wealth Management
Sports Wealth Management
Wealth Management for Pro Athletes: What You Need to Know
Advice, emotional investments, schemes, and taxes – let’s get right into it.
I’m Rob Tetrault from robtetrault.com, a portfolio manager at Canaccord Genuity Wealth Management, and a member of the Tetrault Wealth Advisory Group.
Professional athletes have serious targets on their back. If you’re a pro athlete looking for wealth tips and don’t know where to go, you’ve come to the right place. We will provide you with everything you need to know about investment management strategies, tax management strategies, planning strategies, and more concerning your wealth as a pro athlete.
Before we delve into the details, take a moment to subscribe to our YouTube channel, like and share on Facebook, and leave a comment if you have a different perspective. We’d love to hear from you. Also, if you’d like to book a no-obligation consultation with us regarding this or any other matter on your mind, visit www.speak2rob.com to schedule a chat. No obligations attached.
As a pro athlete, or perhaps a parent of one, your main concern is what to do with your wealth. First and foremost, pro athletes typically have a drastically different earning cycle compared to most individuals. While others gradually increase their income over time through work or education, your earning power peaks during a specific period, usually between the ages of 25 and 32 or 33. These prime earning years come with their own set of problems, issues, and concerns.
Therefore, my first tip to you is to build a financial team around yourself for your wealth. You may already have an agent or someone you trust, but it’s essential to be aware that there are individuals who might try to take advantage of you. Emotional investments are common in this field. People may view you as an ATM and attempt to exploit you. Building a team, including a fiduciary like a portfolio manager, who is legally bound to act in your best interest at all times, is crucial. They can help you navigate the complex world of wealth management while you focus on your athletic career.
The earning window for pro athletes is relatively short. While some superstars may have an extended career, for most athletes, the opportunity to earn millions of dollars lasts for only a few years, typically between five and fifteen. Additionally, you’ll be paying a significant portion of your earnings in taxes, especially if you’re a Canadian athlete subject to a 50% tax rate on personal income. Therefore, careful planning and investment strategies are essential to make the most of your short earning period and manage your taxes effectively.
One of the critical aspects is budgeting. Although it may seem obvious, budgeting is crucial for professional athletes. While you should enjoy your wealth, it’s vital to be mindful of your spending and avoid living a lifestyle beyond your means. Protecting and preserving your earnings, allowing them to compound and grow, is crucial. Additionally, tax optimization is essential. By focusing on tax-efficient investments, such as deferred gains and return of capital investments like private real estate, you can minimize the tax burden on your portfolio.
Another consideration is ensuring that your wealth extends beyond your athletic career. Planning for a multi-generational legacy is crucial, especially if you have a family or plan to have one in the future. Working with professionals who specialize in insurance planning, legal concerns, and tax planning is vital for securing your wealth and providing for future generations. The Tetrault Wealth Advisory Group focuses on professional athletes, understanding the emotional and investment hurdles unique to this field.
In conclusion, as a professional athlete, your wealth management requires careful consideration and planning.
If you’d like to book a no obligation consultation we’d love to chat with you about this specifically or anything else on your mind. If you’re a professional athlete and you need advice on this by all means go to
We’d love to book a chat with you to! We are all about protecting your wealth.
We appreciate you taking the time to tune in thanks have a great day! I’m Rob Tetrault from robtetrault.com – fiduciary portfolio manager here at CG Wealth Management and the Tetrault Wealth Advisory Group.