Professional athletes often face unique financial challenges, from managing sudden wealth to planning for life after their careers. A financial advisor for athletes specializes in addressing these needs, offering guidance on budgeting, investing, tax strategies and long-term wealth preservation. By tailoring strategies to account for fluctuating income and short career spans, these advisors help athletes build a secure financial foundation.
For help finding a financial advisor, SmartAsset’s free matching tool can connect you with fiduciary advisors who serve your area. Get started today.
Planning for the Realities of Pro Sports
Professional athletes often face careers that are shorter than those in most other professions, requiring careful financial planning early on. For example, the average NFL career lasts just 3.3 years, according to Statista. NBA players fare slightly better, with an average career length of 4.8 years, as reported by Pro Connect, a platform that connects basketball players with job opportunities in international basketball.
Professional hockey players in the NHL typically play for around 4.5 years, while Major League Baseball players have longer careers, averaging 5.6 years, based on a 2007 study of career lengths in the 20th century. However, more recent trends suggest that MLB careers, particularly for pitchers, may now be shorter.
The challenges of earning the majority of lifetime income so young are significant. Professional athletes have an extremely short window in which to make their money, so they need to capitalize on it quickly.
Many athletes struggle with managing sudden wealth and face pressure to maintain extravagant lifestyles. Without proper planning, it’s easy to overspend, leaving little financial security after retirement. Additionally, a lack of financial literacy makes some athletes more vulnerable to poor investment decisions or exploitation.
For those with shorter careers, like NFL and NHL players, the financial stakes are even higher, as there is less time to accumulate wealth for the years ahead. Early career planning is crucial to help athletes transition from their playing years to a financially secure future.
The upside, though, is that not only do you make astronomically more per year than the average worker but you make that money very early in life. This means that if you find someone who can help you invest with discipline and forethought, you can create a million-dollar retirement account by age 25. With nothing to do but grow over the next several decades, that can turn into a source of outstanding financial security.
How a Financial Advisor Can Help Pro Athletes

By offering tailored guidance, advisors help athletes navigate the complexities of wealth management, protect against unforeseen risks and create meaningful legacies that extend beyond their careers.
Manage Investments and Build Wealth
A well-rounded investment strategy is critical for athletes aiming to grow and preserve wealth. Financial advisors often recommend diversified portfolios, including stocks, bonds, real estate and private equity. Diversification reduces risk and creates a balanced approach to building wealth.
Advisors also guide athletes on maintaining liquidity for unexpected expenses or opportunities. Having a portion of assets in liquid investments ensures athletes can access funds without disrupting long-term plans. For younger athletes, advisors may focus on growth-oriented investments, while those nearing retirement may prioritize stability and income generation.
Protect Against Financial Risks
Athletes face unique risks, including career-ending injuries or sudden shifts in market demand for their skills. A financial advisor helps mitigate these risks by recommending insurance policies such as disability insurance, career-ending insurance and liability coverage. These protections provide peace of mind and financial security in unpredictable situations.
Estate planning is another critical component of risk management. Advisors help athletes create wills, trusts and other legal structures to protect their wealth and ensure its distribution aligns with their wishes. This is especially relevant for athletes with dependents or significant assets.
Support Philanthropy and Legacy Goals
Many athletes aspire to give back to their communities through charitable endeavors. Financial advisors assist in structuring philanthropic efforts efficiently, whether through setting up foundations, donating to causes, or providing scholarships. Proper planning allows athletes to maximize the impact of their contributions while gaining potential tax benefits.
Advisors also help athletes establish a legacy that extends beyond their playing careers. This could involve supporting initiatives they are passionate about or ensuring financial security for future generations. Thoughtful planning creates a lasting impact that reflects the athlete’s values and goals.
What to Look For in an Advisor
A professional athlete presents a unique financial profile. You’re generally young, overnight wealthy with an extremely short, high-intensity career ahead of you. So you need a financial advisor who can help meet a few specific challenges.
First, you need someone experienced with wealth management and serving high-net-worth individuals. Most financial advisors plan around income, meaning that they will build you a financial plan that assumes you will make money steadily over a period of decades. Wealth managers, on the other hand, build a plan specifically around significant, existing assets.
You also want someone experienced at managing money for professional athletes specifically. A professional athlete’s finances have several unique profiles, including how you earn and structure your income. For example, it’s likely that you will eventually have multiple homes, depending on where you live and where you play or train. You might also earn money in literally dozens of different states each year, triggering so-called “jock taxes” that can apply any time you earn money in any given state. You need a financial advisor who can not only handle these issues but anticipate them in advance.
Finally, perhaps most importantly, you need someone who can act as a financial coach as much as an advisor. This means you want someone who can talk to you about lifestyle and personal decisions as much as financial ones. The best financial advisor is someone who you can listen to when they tell you to cut back on a lavish lifestyle even while all of your teammates and friends are living the dream.
If you choose particularly well, or get particularly lucky, your advisor will have played ball once too. After all, everyone knows the best coaches left it all out on the field.
Bottom Line
Professional athletes face unique financial challenges that require specialized strategies to manage wealth, plan for shorter careers and establish meaningful legacies. Key considerations include building diversified investment portfolios, protecting against financial risks such as career-ending injuries and preparing for life after sports.
Financial advisors can play an important role in helping athletes maximize their earning potential, maintain financial security and create opportunities for long-term growth and philanthropic impact. With the right support, athletes can effectively navigate the complexities of wealth management and secure a stable future beyond their playing years.
Tips for High-Net-Worth Financial Planning
- To ensure wealth is preserved for future generations, consider advanced estate planning tools like dynasty trusts or private family foundations. Dynasty trusts allow wealth to pass down multiple generations without incurring additional estate taxes. Private family foundations can be structured to support philanthropic efforts while offering tax advantages and family governance opportunities. Periodically reviewing and updating estate plans ensures they remain aligned with evolving laws and family goals.
- No matter who you are, a good financial advisor can help you develop patience and discipline. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Photo credit: ©iStock.com/anton5146, ©iStock.com/Eugene_Onischenko, ©iStock.com/South_agency