If you are a professional athlete playing for a major sports team, then you may be unfamiliar with how to handle your new higher income. You may want to leverage your income to make it grow over time, even after you stop playing. If you are one of these people, there are several investment opportunities you should consider to make your money work for you.
1. The Simple Way - Dividends
An extremely low effort way to use your after-tax income (besides any retirement savings) is to invest in a diverse group of companies from around the world and allow them to pay you over the years for your investment with dividends. This means that you will buy stock or equity in a variety of companies (diversification) and own a part of them. Then, because you invested in those companies, they will return some of their profits to you on a per-share basis. Additionally, the stock market has historically beaten the rate of inflation in a way savings accounts can't provide. You don't have to invest all of your money, and you can use it more actively if that's your preference.
2. Starting a Business
Another way to make your money grow is to start a business. Many professional athletes have used their relatively high income and fame to start a company or other business venture. You will have much of the money needed for up-front costs and initial capital, and the marketing aspect will be much easier as fans of your sport can easily learn about your venture. Plus, you will most likely know people willing to invest their own money into your company as well. You can provide any product or service you can dream of that people are willing to spend money on. Additionally, business income is taxed more favorably than regular income, as you are only taxed on profit and not on revenue.
3. Financial Advisors Can Help
One of the most important parts of handling a sudden income increase, especially with major amounts of money, is to hire a financial advisor. They are trained to walk you through how financial and banking systems function and work with you to complete your goals. You most likely can find a financial advisor you trust by asking your teammates who they work with or even your team's manager. They can help you complete any one of your financial goals, and if you would like to mix and match these strategies they can help with that as well.
If you are a professional athlete, you may want to know how to leverage your income so that it grows over time, even after retirement. If so, you have the option of passive investment for dividend income, starting a business, or even both. Regardless, a financial advisor can help you with professional athlete business ventures.