Finding the right financial advisor is not always easy as professional athletes can become financial prey as disreputable people can see athlete’s money as very easy to get to. Here are some hints on how to choose the right financial advisor:
- Hint 1: Educate yourself
Different advisors have different areas of expertise, so it is important that you find someone who can address your specific situation as a professional athlete. Take the time to educate yourself on basic technical financial language as there is no shortage of certifications, designations, and acronyms in the financial world. Understanding what these terms mean will allow you to be more comfortable when meeting with a prospective advisor – see the ‘Financial terms explained’ below.
- Hint 2: Talk to others
Seek advice from those around you. Even though you may not want your family, friends, teammates, or agent to handle your finances directly, you can still ask them for recommendations. If there is a good financial advisor in your area that works with athletes their name should come up when you ask around.
- Hint 3: Interview the candidate(s)
Any reputable financial advisor will hold an introductory meeting at no cost. This first meeting is beneficial to both you and the advisor. It provides an opportunity for you to explain what you’re looking for and ask questions, while the advisor can determine if they are suitable for the job. The professional you choose will need to know a lot about you and your finances. You have to be comfortable enough to share this information and be as truthful as possible. If not, you may be putting your finances in jeopardy.
Examples of questions you could ask before hiring your financial advisor:
- What do you charge and what method do you use to get paid?
- What are your credentials?
- What kind of experience do you have?
- What exact services do you provide and how often do you see your clients?
- If you play internationally – Do you have the right credentials and experience to navigate the international aspects of my finances?
- Do you have any questions for me?