Here’s what one wise financial planner who works with young athletes tells his players: look at bonuses not as extra spending money, but as way to boost your investment balances or pay down debt accumulated in the early part of your career.
That’s especially important for professional athletes, who tend to have short and uncertain careers.
According to research by Prof. Annamaria Lusardi at George Washington University, more than 15% of retired NFL players filed for bankruptcy within 12 years of retirement, and trouble can start almost as soon as the athlete stops playing.
That’s why earmarking that bonus or unexpected windfall for extra savings is good advice for all of us!
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