The last few weeks have seen a flood of athlete retirement news, from Super Bowl hero Nick Foles to women’s soccer legend Alex Morgan hanging up her cleats. For many athletes, retiring can be a tough transition. They spend their entire lives preparing for that one moment, and they must shift from training around the clock to surviving on minimum wages and limited social support. They also have to find their self-identity outside of the sport they love and build a new foundation for themselves.
Despite these challenges, most retirees do well in their post-athletic careers. It is important that they learn about investing and financial planning early in their careers, says Tom Sagissor, president of RBC Wealth Management – U.S. and a former NHL draft pick. This will help them make smart investment decisions and avoid making mistakes that can jeopardize their futures.
In addition to investing wisely, it is crucial that athletes pay off their debts and focus on building income-producing investments such as real estate, fashion, or broadcasting. However, not all athletes will succeed in these business ventures — for every George Foreman and Venus Williams, there are many more that have gone broke or failed to maintain their success after leaving the game.
Athletes should be sure to stay connected to their sport peers once they retire, as this will allow them to continue to feel a sense of belonging and find a purpose for themselves outside of the world of sports. Athletes should also make an effort to maintain connections with their parents, partners and coaches.