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

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