When working with a fee-only advisor, consider the benefits of working with a pro athlete. However, you should consider the costs involved. Here are some prices for working with a fee-only advisor and non-athlete advisors. Setting guidelines for your advisors to serve your needs is also essential.
Costs of working with athletes
Many of these athletes need to work with wealth management for professional athletes who are confident in their abilities, but they may also need someone willing to tell them the truth. In addition, athletes often need constant concierge service, and financial advisors who can handle their needs should be able to provide this level of commitment. This requires a multi-tiered approach, as athletes are often not comfortable hearing “no.”
Athletes typically rely on their inner circle for financial advice. Because these athletes have relatively short career spans, they may not have the necessary expertise to make sound financial decisions. That’s why they need an investment adviser who’s qualified and willing to serve as a financial coach and investment adviser. Sometimes, this requires regular, in-depth conversations about finances and life. This level of communication is not always possible with family members or friends and may not be appropriate for athletes.
Athletes are often exposed to slick-talking salespeople. As a result, they don’t always think about the future. As a result, they are often tempted to donate large sums of money to charity. To avoid potential conflicts of interest, athletes must make sure contributions are tax-deductible and offer benefits. A good wealth manager can help athletes make the right decisions regarding charitable donations.
Working with fee-only financial advisors is not for everyone, however. While some athletes have access to a team of advisors for fee-only services, others may need more than a handful of recommendations from friends and family members. For example, Carlos Dias Jr., a fee-only financial advisor, says it is necessary to work with someone with a track record of success in the sports industry. However, he also warns against hiring anyone with a history of mismanagement.
A fee-only wealth adviser earns a flat, hourly, or annual fee. They may also earn commissions on products they sell. While this may not seem like a big deal, it can create a conflict of interest if advisors are paid by commission and are more likely to sell products that pay them the most—as such, working with a fee-only adviser may be a better choice for pro athletes with limited financial resources.
While many athletes are reluctant to hire a fee-only financial advisor, they should always watch crooked advisers. These advisers are unlikely to be experienced enough to help athletes make sound financial decisions. In addition, some athletes hire family members as financial advisors or business partners. While these decisions may seem like the right move, they can cost them dearly. Instead, athletes should employ a team of professionals with a track record of helping pro athletes reach their financial goals.
Costs of working with a fee-only advisor
Finding a fee-only financial advisor is a top priority for professional athletes and their finances. Unfortunately, the field of professional athletes is rife with scams and shady advisors. However, by hiring a reputable advisor, you can avoid these problems.
The fees and costs of working with a fee-only advisor can be more predictable. These advisors earn either a flat fee per year or an hourly rate. In addition to the hourly rate, they may also charge a flat fee based on the size of your portfolio. Choosing a fee-only advisor may be a good option for those new to investing. However, this option may be more expensive than other fee-based options.
As with any other type of professional athlete, financial planning is essential. Athletes are known for burning through six-, seven-, and even eight-figure salaries. While this is an impressive income, it can easily lead to a false sense of security. In addition, there is a short window during which athletes earn their highest amounts. Therefore, they must surround themselves with a competent and ethical fiduciary advisor.