Financial Planning For Athletes & High-Earning Pros
Don’t think financial planning is important, just ask all of the professional athletes who have lost their fortune by wasting their money away. Studies show that seven out of ten professional athletes go broke after their careers are over.
Miami Beach accountant Manal Oliver knows that what doesn’t help pro athletes is that for the most part they come into all those millions of dollars at a young age. For example, Brazilian footballer Neymar makes $37 million at the age of just 25 years old.
He has four sponsorship deals with international brands including Nike, Panasonic and Beats by Dr.Dre. However Neymar has had trouble with the IRS. After transferring to Barcelona FC, Brazilian investment funds DIS accused him of fraud along with Barcelona and Santos clubs. In March 2017, he had to pay $52 million in fines after Brazilian authorites convicted him of fraud tax.
Miami Beach Accountant Says Save, Save, Save
For professional athletes, it’s important they remember that those huge paychecks may be gone in just a year or two. Many factors come into play when their contracts are being reviewed including various terms, transfers, scandals, how they play and so on. Pro athletes can’t bank on the same amount of money year after year. Some also are just paid during the season, so financial planning allows them to stretch those paychecks the right way.
Professional Accounting Such As Minimizing Taxes
Professional athletes should without a doubt seek out the services of a professional accountant so they can maximize smart tax strategies that’ll help them keep their earnings.
For example, choosing the right place to live. Certain states such as Florida, Texas and Tennessee are no-income tax states resulting in many tax savings for high-earning professionals. A professional accountant can also help athletes understand the impact that signing a bonus has on their taxes or how to mitigate the jock tax which involves tax in visiting states/road games. Miami Beach accountant Manal Oliver says tax deductions are another area that’s typically misunderstood including agent fees, workout gear, gym memberships, massages, nutritional supplements and so much more in the case of an athlete, not to mention retirement planning.
Set Goals and Planning Ahead
Miami Beach accountant Manal Oliver knows that 70% of athletes lose their fortunes after they get stop playing sports so it’s important that they plan ahead while their still in the game.
Professional athletes need to educate themselves about their financials so they can navigate their career the right way. What they spend, when they spend is all part of the bigger picture. Monitoring their credit, setting up healthy spending habits, learning who to trust for financial advice, setting tax-efficient investments and planning out a transitional plan once they retire is extremely important. From convertible bonds to investment-grade corporate bonds and common stocks, there’s a smart way to invest a fortune and an accountant can help.
If you’re a professional athlete or high-earning professional, call Miami Beach accountant at 305. 868.7620 for a consultation.