For Professional Athletes
While Principium has made a mission of providing Michigan retirees with top-level strategic guidance, we continue to work diligently with men and women who play professional sports for a living and require a highly strategic plan for tax efficiency and long-term income.
This arena demands a key element be included in portfolio management: A strict and unwavering commitment to particular financial certainties, notably tax-free income streams available later in life. While the world’s corporate executive may still be able to rely on pension plans and career longevity, many athletes are well compensated for their talent and the inherent risk they undertake but are paid lump sums in early years with no promise of income that extends beyond 30.
There is a delicate balance that MUST be struck between spending now and structuring for income later. While many athletes are able to leverage their notoriety into other business ventures, the stark reality is that bankruptcy and financial ruin affect more than half of all professional athletes. Advisors employing aggressive investment plans and offering private-equity and placement can certainly bolster current wealth, but there is a missing element that allows for long-term tax-free income and a sustainable paycheck in later years.
Over the years, Principium and its affiliate partners have been pleased to work with those in Major League Baseball, the National Football League, PGA Tour, and many others. Our relationships are long-standing and special to us.