There are important lessons to learn from numerous athletes who have faced financial failure. A common thread often lies in the misplaced trust athletes place in the wrong professionals. We’ve all heard stories from around the world where lawyers, accountants, investment advisors, and others have defrauded athletes by pushing risky, “high and fast profit” schemes. In many cases, athletes not only lost their investments but have also faced accusations of tax fraud.
Throughout different stages of your life, you’ll interact with many professionals who will support your athletic, financial, and business goals. Building the right team of trusted, reputable, and experienced experts in their respective fields is critical to your success. Once you have the right team, your advisors will help you accomplish things beyond what you can do alone.
It’s essential to carefully interview advisors before deciding to work with them. Choose people who are not only qualified but also those you connect with on a personal level. These relationships tend to be long-term, so it’s important you enjoy working with them. A financial planner, realtor, lawyer, or tax professional who has a solid track record and is trusted can be a valuable resource. Avoid relying solely on family or friends for financial advice — this can lead to serious problems, as seen in high-profile cases like Messi’s tax issues.
While having a great team is crucial, remember that many financial professionals earn commissions. This means they get paid only if you invest in their recommendations, which may not always align with your best interests. Advisors should inform you of all your options, but the final financial decisions are yours to make. Be cautious of anyone promising unrealistically high returns—there is no such thing as a “free lunch.” Such promises are often red flags.
Your financial team should ideally include a lawyer specializing in business, tax, and estate planning; an accountant or tax advisor; a certified financial planner or money manager; and an insurance specialist. This team should collaborate closely with you and your agent, ensuring everyone stays on the same page when major decisions arise.
So, how do you choose your financial freedom dream team? Here are a few tips:
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Find professionals who prioritize your best interests, not their commissions.
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Understand that experts specialize—an accountant isn’t the same as a financial planner.
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Don’t rely on a single advisor; build a team with diverse expertise.
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Ensure your financial experts communicate and welcome input from each other.
Our best advice? Educate yourself on basic financial and investment concepts. This knowledge will empower you to evaluate advice critically and make sound financial decisions. Remember, a solid understanding of finances can be a lifesaver when making decisions that impact your future.