In a recent LinkedIn post, Ivan Miljkovic imparted valuable advice to young professional athletes on managing their finances for a seamless transition beyond their sporting careers. Drawing from his personal experiences, Miljkovic emphasized the importance of early financial planning, highlighting that the journey from sports to post-retirement endeavors is fraught with challenges but also ripe with opportunities.
“As a former athlete, I understand the challenges and opportunities that come with a career in sports. Transitioning from the field to other endeavors is inevitable, whether due to age, injury, or shifting priorities. That’s why I want to share some advice, drawn from my personal journey, to help young pro athletes navigate their financial planning for a smoother transition beyond their careers.
The moment you start earning more than your last year’s average monthly expences, it’s time to think about your financial future. Keep track of your earnings and expenditures, just like you would track your performance on the field. It’s tempting to indulge in childhood dreams like cars, watches, and travel, but remember that financial preparation is key for the long term.
I’ve learned that the longer your career, the further you are from finding the right job position post-retirement. While some athletes aim to remain in the sports ecosystem, the competition for these positions is fierce.
To ensure a smoother transition, consider these points:
- Start Early: Just as in sports, early preparation is crucial in financial planning. Set financial goals, create a budget, start saving, and educate yourself about investing.
- Diversify: Relying solely on a contract for income is risky. Diversify your investments to create post-retirement safety nets. Choose your support team wisely and seek advice from trusted professionals.
- Live Within Means: It’s easy to succumb to a lavish lifestyle, but maintaining a modest lifestyle can prevent financial troubles in the long run. Keep your financial advisors close, but your family even closer.
- Education and Skill Development: Continuous learning opens doors to new opportunities post-retirement. Explore new interests and ideas to stay engaged and prepared for the next chapter.
- Build/Extend Network: Transitioning from sports to other fields can be daunting. Build a strong support network of mentors, peers, and professionals who can provide guidance and networking opportunities.
- Embrace Transition: Retirement marks the end of one chapter and the beginning of new opportunities. Approach transition with optimism and a well-executed financial plan, and embrace the next phase of your life with confidence and security.
Don’t hesitate to seek advice and support from former top athletes who have been through similar transitions. Champions are made stronger by the support they receive, so don’t be afraid to ask for help when you need it!”
