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Retirement

Think about the game after the game!

While athletes are busy getting the VIP treatment, they find themselves concealed in a bubble that can sometimes seem disconnected from the real world. The reality of day-to-day, week-to-week, month-to-month budgeting is forgotten and replaced with the fast nature of a professional athletes lifestyle, which invariable results in over-spending.

So, after dedicating an entire life to sport and the time comes to hang up their boots (average age of 33) – Very few have given any thought about how they would approach life after the final whistle blows. So, while most ‘regular’ people are busy working for another 30 years, what can professional athletes do?

A number of players contribute to a tailored pension scheme. However, when you review the sporting pension process, it becomes clear that athletes cannot depend on the governing body pension scheme to be able to sustain the same lifestyle they have become accustom to – In some instances, they cannot gain access to their pension until 55 at the earliest. So when we consider that players finishing playing at 33, as an average and 3 out of 5 players go bankrupt within 10 years of retiring, you need an alternative to your pension, if only for the next 20 years!

So players must either consider taking up new an employment opportunity or revise their current standard of living drastically, in order to survive. That second option is only a delaying tactic, rather than a solution.

Planning for life after sport means exploring the following:

  • Investing in new business ventures, to build and generate some extra income
  • Investing in the stock market
  • Investing in property

We believe that investors should have a diversified investment portfolio, which includes both shares, property and where the opportunity presents, business ownership. However, for a player focused on his or hers craft, it is unquestionable that investing in property is far safer and offers a more stable and mature proposition. Some of the reasons include:

Rental Yield
Property delivers steady and consistent yields and is viewed by investors as a ‘safe haven’.

Capital Growth
One of the most appealing things about investing in property is the potential for capital growth. Property prices have historically risen in stable markets over the medium to long term. If you can identify the right areas to invest into property, the benefits gained from capital growth can be sizeable.

Leverage
No other ‘retail’ investment class allows investors to leverage their position in the same was as property. Leveraging your
money by securing a mortgage against the property enables you to achieve returns that would require a much higher level of
personal funding with other investment classes. The use of a mortgage acts like a magnifying glass: as the market moves upwards, your potential returns are multiplied.

Volatility
All asset classes are affected by market volatility, but property is more resilient to external economic forces and often holds its underlying value better than other asset classes. This means that unlike other asset classes, property is much less exposed to short term volatility. Take the 2008 recession as an example, the stock market dropped by more than 40%, the UK property market by less than 10%. If you want to review the long term view, look at property prices in the UK from 2008 and compare them with today’s.

Tax Planning
Most property investments can be structured in a way to take advantage of tax benefits that would not be available for other investment vehicles, further strengthening the ability to maximise the potential of your available capital. For example, we often advise clients on the benefits of investing in a company structure to maximise tax efficiency

 

About London Belgravia Real Estate

Sports professionals need three things to successfully transition from their playing career to retirement:

  • Financial education
  • Sound Advice
  • A plan

To optimise their life after sport, we believe that the earlier a player starts thinking about what they’ll need financially, for them and their families once their playing days are over, the better prepared they will be and the more enjoyable retirement will be for everyone involved.
Our platforms core objective is to remove the fear of financial instability by providing a property plan that delivers a stable, monthly income that allows athletes and their families to enjoy a comfortable life long into retirement. By building a property portfolio that delivers monthly income, you will also have a portfolio of significant value, which will give you options.

If you have options, you have choices, if you have choices, you can choose freedom.

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