Be Like Tiki Barber -- Invest Smartly

For an athlete, the high earning years are limited; therefore the financial plan would include less risk-taking than might be taken by someone with similar income but with a much longer earning horizon.

Q: Can you give me the story of an athlete that did everything right?

A: Tiki Barber is an athlete who made the right choices throughout his NFL career. He saved money and diversified his investments. As his financial security and nest egg increased, only then was he able to enjoy a more expansive lifestyle. He also successfully transitioned out of sports and into a broadcasting career.

In the off-season, Tiki worked in various broadcasting capacities and learned the business. Once he retired from football, he did not have to regroup and start from scratch. It was a seamless transition because of the work that he put in during his sports career.

Q: Can you tell me the biggest pitfalls?

A: The biggest financial pitfall for athletes is spending, spending, spending. This is generally a much larger financial pitfall than making poor investments -- although, unfortunately, many do.

Another huge pitfall is providing family and friends with unproductive financial support. Allowing family members to share in an athlete's success can be a wonderful thing, if done in a manner commensurate with the athlete's financial prospects. However, we also believe that you are not helping someone you love by depriving them of the incentive to be successful on their own.

On the investment side, the biggest pitfalls we see involve athletes who are not cautious enough and who risk too much of their capital in high-risk ventures.

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