What Robin's Reading: Retirement Lessons from Athletes

If you're a sports fan, you probably have favorite athletes you admire. We love cheering for athletes on the field, but many athletes also shine from the sidelines...and this month we're reading up on how athletes are super star retirement planners.

That may sound strange — especially when you think about highly paid athletes — but we've picked out a few of the most important lessons we can all learn from our favorite sports stars.

1) Live within your means...or below your means (if you can)

When you hear about a huge contract for an athlete, you probably imagine that they're set for life and never have to worry about money. But not all that money is guaranteed — just like our salaries aren't a sure thing. Spending money we don't have is a surefire way to encounter obstacles when it's time to retire, whatever your salary. "Financial security is not about the size of the nest egg, it's about managing within your means."

2) Assemble an all-star team and make sure you are the captain

Did you know that over 75% of NFL players and almost 60% of NBA players end up filing for bankruptcy within five years of retirement?

Athletes often find themselves surrounded by advisers who don't have their best interests at heart; the ones who avoid this financial fate have a team of well-informed advisers helping them plan for their futures. The same is true for all of us. A good team will help you set retirement goals and guide you to make decisions to achieve them.

The best teams have strong leadership and clear vision, and that's where you come in. You have to be the captain of your financial and retirement planning team. This doesn't mean you have to know everything about retirement and financial planning, but it means you have to clearly articulate what you want and be sure to speak up if something is unclear or seems misaligned with your goals.

3) Prepare for the unexpected

When you think about retirement, you probably imagine that it will happen when you're at least 55, if not older. While athletes may retire at a younger age, most assume they will play for at least 5-10 years. But what happens when something shakes up those plans? For an athlete, this could mean a career-ending injury, or a team not willing to sign them — reasons that aren't so different from what might make most of us retire before we thought we would. It's important to talk about long-term disability and life insurance as part of your retirement plans.

4) Consider the emotional impact of retirement

For obvious reasons, finances are the primary focus when we talk about retirement planning. But there are emotional considerations as well. Athletes who have trained and played a sport their entire lives are often unprepared for what it means to stop playing sports professionally. They lose their routine, their days are unstructured, and it can be hard to know how to spend their time.

The same is true for anyone who has built a career. When you plan for retirement, make sure you are also planning for your "second act." How would you enjoy spending your time? What would bring you joy and fulfillment? Considering these questions can help make sure you are in the mindset to both enjoy your retirement and continue to make solid financial decisions.

Questions about how to prepare for your retirement? We can help. Contact Robin S. Weingast & Associates today and learn how we can make a great team!

#retirementplanning #retirement