Professional athletes are anomalies when it comes to investing. Most people look at winding down their careers after 30 or 40 years, but for professional athletes, retirement typically knocks on their door after 10 years or less. This short career span leaves a small window for planning a long lifetime. Due to this unique structure, athletes cannot afford to be overly zealous with regard to spending or risk.
We focus on safe, low-cost investments such as mutual funds to give them a slow and steady return. We offer nine portfolio models ranging from very conservative to aggressive to ensure our clients are reaping the benefits of diversification. The models that fall on the lower side of the risk spectrum consist of cash, international, and U.S. bonds. On the other side of the risk spectrum, we use a larger percentage of growth stock funds and hard assets since we see the long-term outlook for gold, energy, and natural resources to be very favorable. We also have balanced portfolio models consisting of treasuries, government bonds, growth funds, hard assets, and international funds.
Investing clients’ money conservatively DOES NOT mean limited options. Researching alternative investment opportunities such as real estate, oil and gas limited partnerships, REITs, separately managed accounts, and collectibles such as gold and coins is crucial, as these can be great additions to their portfolio. We perform our due diligence with regard to each investment opportunity deemed fit to be considered. There are, of course, those that are NOT deemed fit to be considered. The “can’t go wrong deals” presented by associates and, unfortunately, sometimes family, typically fall into this category.
We have remained focused and firm in our approach to investing for our clients. Below is a diagram illustrating our methodology. As you can see, building your financial house is very similar to building a house in which you reside. A strong and safe foundation is crucial. Within the early years the focus is on building the base, and as your wealth increases, you start to take on more projects and add value by adding new options.