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According to Pablo Torre, Sports Illustrated 60 to 80
percent of professional athletes go broke within 5 years of leaving their sport. Torre reports they easily sold because
slick salesmen offer tangiles to invest in. Something a lot more exciting than sensible financial planning or intangible
but sound investments designed to provide income in our later years.
See Pablo's complete article at http://sportsillustrated.cnn.com/vault/article/magazine/MAG1153364/index.htmDan Berman, AdvisorOne.com compiled a list of the top 10 cases
of athletes going broke.
Number 1, of course, Mike Tyson, boxing lost $400 million to outrageous spending, a pricey divorse,
two Las Vegas mansions and big tax bills.
Number 2, Derrick Coleman, basketball lost $87 million a little from overspendin
but mostly losing investments in real estate and businesses that with the odds of success against them.
Number 3, Lenny
Dystra, baseball, lost at least $60 million to wild stock picks and high living.
Number 4, Michael Vick, football, lost
at least $50 million investing in dog fighting, which landed him in prison bankrupt. He has a new contract but much
of it will go to creditors.
Number 5, Sheryl Swoopes, women's basketball, running up debts of about $700,000.
Number 6, Diego Maradona, soccer lost $26 million on drugs and back taxes.
Number 7, Raghib Ismail, football lost nearly
$18 million in a skin product and a Hard Rock Cafe nock-off.
Number 8, John Elway, football, lost $15 million in the
Mueller Capital Investment Ponzi scheme.
Number 9, Darren McCarty, hockey, lost more than $6 million on gambling, a divorce
and booze.
Number 10, Johnny Umitas, football, lost about $4 million by personnaly guaranteeing loans to a circuit board
company.
Read the complete story at http://www.advisorone.com/2011/09/23/top-10-worst-financial-meltdowns-by-athletes#.Tnzhj-DhghY.email
What did all of these athletes have in common?
Lots of cash, a shortage of assistance or someone to trust
and inexperience.
What is the remedy?
Agents and professionally licensed financial advisors with a fiduciary
responsibility to the client.
It makes sense to me.
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