Belcher Tragedy: Financial problems were one of the issues that lead to the tragedy

 

 

 

 

Did Belcher have financial issues that lead to the tragedy?

According to his close friends Belcher and his girlfriend had been arguing about money and finances over months.

 

Belcher hard expending and partying caused many arguments with his girlfriend and mother of his surviving little daughter.

It is no news about financial troubles many athletes face and some even" go broke".

But for those that need financial help and want to keep a healthy retirement, there are many ways to do it without cutting all the luxuries.

What are the reasons so many athletes "go broke"?

There are several reasons why so many athletes “go broke”. First, whether it is a lottery winner, an athlete or a star entertainer, if they are not equipped with the knowledge on how to make and save money they are in trouble. When they didn’t earn it through disciplined business practices and they don’t have those skills they usually go through it quickly. Most lottery winners or athletes make a great deal of money in a short period of time. They start spending it on things that only go down in value (cars, jewelry, partying, entourage, etc) and start to evaporate the money they do have. They can carry this off until they stop earning big money. This is when the trouble starts. It is hard to believe that MC Hammer, Mike Tyson, Evander Holyfield and Ed McMahon are broke. These are people who earned hundreds of millions over time and it disappeared. Lavish spending and entourages were probably the downfall for the first three for sure.
Most athletes play for four to ten years if they are lucky. After they pay taxes (can be 40 to 50%) and agent fees and buy their first homes, cars, outfits, jewelry (plus, cars, clothes and jewelry for friends and family), they are left with very little. When they first “strike it rich” all of their longtime friends and family expect help. Most athletes feel obligated to help everyone out at first then they wise up. They also want to keep up with their teammates. If someone buys a Bentley, they have to buy one; if someone buys a $75,000 watch, they have to buy one to keep up the appearance. Then, of course, when the career ends and they are still living in a multi million dollar house, driving 3 expensive cars (and insurance), traveling in private planes and taking Limo’s when they go out on the town, reality sets in. The money dries up very quickly.

However, if athletes educate themselves, learn money management skills and make smart, safe investments along the way, they are usually in very good shape.

Michael Minter is an independent financial Advisor and played professional tennis during his school and college years. His company has helped many business owners, professional athletes and families achieve their financial goals.

He is also the author of I-PLAN, a book that teaches finances in an easy and fun way.

For more info: www.MintcoFinancial.com

Terrell Owens: Why you should have had Disability Insurance

 


In today's era of free agency and short-term contracts, the professional athlete is faced with a bewildering variety of choices when it comes to disability insurance.

The athlete is tasked with making what could be a life-changing decision, but the exact nature of that decision may not be clear among the various terms, types of coverage and quotes that are offered. An even greater challenge arises in providing the cash up front to meet the premium.

Any one of these issues could have major implications in the event of injury or illness, but they all must be decided in the high stakes atmosphere of new contract negotiations.

Unfortunately, many athletes and entertainers, when confronted with daunting and complex disability insurance choices – and the prospect of a significant up-front cash commitment – end up not purchasing enough disability insurance to adequately protect their most valuable asset: themselves.


Or, worse, they neglect to purchase any disability insurance at all.
Maybe thats what happened to T.O.  He did not buy disability insurance at all.

And as you can see he did not choose the right person to manage his finances.

Read the article  about what he has to say :

Terrell Owens is used to multi-million dollar NFL contracts, not the uncertainty of unemployment. While rehabbing his knee and trying to get back into football, he hit a low point on the 'T.O. Show' (Mondays, 9:30PM on VH1). Feeling dire about his financial situation and frustrated by his rehab, Owens couldn't help but shed some tears.

Since he could no longer count on an NFL salary, Owens was trying to be more conscious of his accounts, but the person he had managing them was nowhere to be found. "This has been going on for the last... three to four months," said Owens. "Every time I call about my accounts or what have you, he's always gone. Football season is on a standstill, so I have no income at this point. None."

His money problems range from mortgages on his properties to child support. "I just don't get it," he said. Whenever he does get it, it doesn't look like it'll be good news.

Mintco Financial Team is specialized in Disability Planning.

Call us at 813-964-7100 to discuss your  particular situation.

Or get a free disability coverage quote: click here!

Visit our website at www.MintcoFinancial.com

Derek Jeter needs a coach, you need a Financial Advisor

 

 www.MintcoFinancial.com

Even the canniest self-directed investors should consult a financial advisor.

Sure, sure. You steered your own financial course for years, with decent results. You don’t need to pay some character to help you do it, right? Wrong.

Every player needs a coach, whether you’re Derek Jeter or Harry, the slow-pitch softball catcher. Every writer needs an editor, whether you’re William Shakespeare or Joe, the ad-copy scribe. And every person needs a knowledgeable third party to look over her shoulder and opine about her financial arrangements.

When some think of an advisor, they believe they must turn over all their finances, paying around 1% of assets yearly. Or they think of brokers, who charge by the transaction.

But do-it-your-selfers can consult an advisor once a year for a few hundred bucks (standard rate: $500 an hour). Or pay the advisor a few thousand for a complete financial plan (depending upon its complexity, the charge usually ranges from $2,000 to $5,000). Much of that is tax-deductible.

A skillful advisor asks you the questions you may or may not be asking yourself: What is your goal? To retire in 10 years? To buy a second home? To set up a trust for your kids? To pass along assets you have inherited? Even the most studious amateur may not have the answers to these questions.

Take insurance. A good advisor can help you find weaknesses in your coverage. It may be that the company providing your policy has gone bust, or is about to. If you own expensive jewelry, is it covered in the event or fire or theft?

Some don’t realize that they are not covered by disability insurance. Should they be unable to work, their family’s finances could fall apart. Do you know how much disability coverage you should have? A good advisor can tell you.

Asset allocation is a tricky business. The old rule of thumb is that your fixed-income portion should equal your age. So if you are 40, you have 40% in bonds and 60% in stocks. But that is a very simplistic gauge.

 Other factors come into play, such as your health, your kids’ education needs, your risk tolerance and your job stability. An advisor will look at all your records and piece together what your needs are now – and what they likely will be in the future.

An advisor can do something for you called a Monte Carlo simulation. This tests the odds of your assets growing to the point that you can have a comfortable retirement – determining when it’s safe for you to quit working. It can even give you the odds of having something left over to pass on to your loved ones once you die.

More broadly, an advisor can lay out an entire plan that encompasses every bit of your financial needs, from investments to real estate to insurance to inheritances. A financial plan has many moving parts, and one segment of it can affect the others.

Mintco Financial Team custom-tailor plans for people with different goals. Because each person is different and has different goals and dreams.

Visit our website at www.MintcoFinancial.com

Or call us at 813-964-7100. 

We are a boutique Financial Company that takes each client as a unique one.

Allen Iverson Financial problems: the cost of not planning

For many, especially athletes, future earnings are typically projected at a very high level over a short duration. The concept of the traditional income stream - from entering the workforce to retirement - that is at the base of client planning assumptions is often useless as a guide for these individuals.

Once their prime earning career ends, future income will often be modest, perhaps even nonexistent. This requires a different perspective on savings, retirement planning and other planning topics.

Athletes are also more likely to suffer a disabling injury that could cut their careers short. While this risk varies depending on the sport, it is far greater than the risk faced by most clients, and the consequences are far worse.

Insurance is only a partial answer to hedging this risk. In addition, while it might be logical to increase the client's current savings, that strategy may conflict with the need to accumulate retirement savings during a potentially short period of high earnings.

The nature of the assets that most athletes and celebrities own is often unique. Their biggest asset tends to be their earning power and, for some, endorsements and other intangible rights. They tend not to have built the asset values in business endeavors that other clients have, unless their investment ventures have already taken them down that path.

A major factor for many of these clients is lifestyle risk. They often face tremendous pressure to keep up with their peers.

Many stars and athletes have entourages that include manipulators and predators seeking to take advantage of their wealth. A high rate of divorce and the probability that family members or friends will seek their financial assistance, leaning on them emotionally to lend or provide money, all add to the pressure cooker.

All told, celebrities and athletes run a dramatic risk of financial ruin from the costs of an extravagant lifestyle, needs or demands of family and friends, legal entanglements, bad investments and a lack of financial planning. 

Lack of financial planning put Allen Iverson and other athletes and celebrities in a bad financial situation.

No one tells a multimillionaire that he can't buy fine jewelry for his wife, family, and friends, and friends of friends. 

Should I save money? Invest money? Realize that a childhood friend may not be the best source for sound business advice? These questions don't seem to require answers when the money's rolling in. 

Traveling to road games with a personal hairstylist -- as Iverson reportedly did -- doesn't seem so outrageous when you're the NBA's scoring leader.
Then the buckets -- and the buckets of money -- stop coming.

Fact is, living beneath your means isn't enough. You have to live beneath your future means -- and save enough along the way. 

www.MintcoFinancial.com 

Asset Protection, Financial planning for athletes. Contact us: http://www.mintcofinancial.com/contactus.asp