At Crue Invest, we adopt a five-pronged approach to manage one’s financial affairs:
The different earnings trends of pro-athletes necessitates a tailor-made approach to investments. In general, athletes experience about ten years of massive earnings, followed by a sharp reduction in income which may be compounded by loss of sponsorships. Our investment advice includes putting mechanisms in place to ensure that professional athletes begin investing as soon as possible in appropriate investment vehicles to ensure that the wealth generated during their sporting careers is expertly preserved for the post-sporting stage of their lives.
Professional athletes generally experience retirement twice in their lives – first from their professional sporting careers, and then from their second, post-sporting careers. Both of these retirement events need to be carefully managed from a financial perspective, taking into account the reality that the athlete’s post-sporting income is bound to be significantly less than he/she was accustomed to. Planning for two retirements that occur approximately 30 years apart, requires careful financial planning and analysis.
The risks of injury, illness or disability are areas of the pro-athletes financial portfolio that need to be very carefully managed. Navigating the South African insurance and medical aid arenas can be both complicated and frustrating. Our aim is to ensure that the athlete is covered by the most comprehensive risk cover available, with the highest likelihood of claims payout and at the most cost-effective rate.
The inherently complicated structure of pro-athletes’ incomes can make tax planning particularly difficult, especially when the athlete is receiving an income from a large number of sources, and possibly from different countries. Because of their hectic personal schedules, many pro-athletes attest to falling behind in their tax commitments simply because they do not have the time. Effective tax planning can eliminate a huge amount of undue stress and anxiety.
At a relatively young age, many pro-athletes acquire valuable assets such as property, vehicles and shares in business ventures, to name just a few. This gives rise to the need for expert estate planning which covers the areas of capital gains tax, trusts, estate structuring and the preparation of a will. Crue’s legal division provides the full suite of estate planning services.