Keep Me Rich
How To Invest When You Are Already Have A Headstart
I was talking to an individual that has worked in the financial sector for over 30 years managing high net worth individuals that included athletes and entertainers. He told me a story about an athlete friend of his that really stuck with me. His friend consistently was courted for different investment ideas and business ventures throughout his career. The one request he would consistently ask anyone seeking to deal with him was, “You don’t have to make me rich just have to keep me rich.”
I really thought that was a profound statement. Considering the salaries for majority of professional athletes, it’s shocking to see so many go bankrupt so soon after their careers are over. If you think about the average salary for a professional athlete it's well over the average household income.
The only problem for athletes is that the career earning curve is unpredictable. It doesn’t account for an injury stopping a career or a coach cutting a contract or restructuring a deal for less money. Your career could be over in Year 1 or you can get lucky and play 20 years that still doesn’t equal the lifetime earning potential and stability of a teacher, accountant, doctor, lawyer, store clerk, etc.
“You don’t have to make me rich just have to keep me rich.”
It’s important to take the capital that you have earned and continue to build a solid financial base. You don’t have to try and hit a home run and lose your capital because you were trying to get rich, you don’t have to try and find the next unicorn start up to throw all your funds in. As an athlete the most important thing is being smart with your money and making sure first and foremost that you stay rich. From building a solid base only then you can start taking monitored risk to increase your net worth and build wealth.
Next time you are looking to expand your portfolio ask yourself the question, will this keep me rich even if it goes bad?