Retiring Like a Pro Athlete

News media often have stories about pro athletes who made a lot of money but became bankrupt. Here’s a piece with a more positive take. It interviewed a collection of retired pro athletes who did smart things with their money and are having successful retirements. The article isn’t just for athletes and prospective athletes. You can use the lessons these pros offer to improve your retirement planning or pass on to your children and grandchildren. They might be more impressed with the lessons from an athlete than from you or me.

Kris Draper, formerly with the NHL, is very savings conscious, telling me,  “After taxes, I always tried to save at least 50% of my game checks;” adding that he recently spoke with his advisor and structured his allocation toward 40% stocks, 35% bonds and fixed income, and 25% cash.  When I asked him about the heavy cash position, he said, “I want to be protected from the market’s volatility and not lose a bunch of money.” That on-guard philosophy matches his hockey playing style, as evidenced by being awarded the Frank J. Selke Trophy recognizing the NHL’s most defensive-minded forward.

Retired football pro Desmond Howard is also in the moderates’ camp but followed a different savings formula.  “I was advised to save my signing bonus for a rainy day,” he said, “and to live on the money I was generating off the field through trading cards deals and other endorsements.”  “Many players live beyond their means,” he carefully suggested.  “It’s not that they are overspending but they’re acting like the money they are making now is going to be there forever.”