Principled Prosperity In Practice
HOW (and why) ATHLETES GO BROKE a Sports Illustrated article by Pablo Torre reveals
"athletes from the nation's three biggest and most profitable leagues—the NBA, NFL and Major League Baseball—are
suffering from a financial pandemic. Although salaries have risen steadily during the last three decades, reports from a host of
sources (athletes, players' associations, agents and financial advisers) indicate that:
• By the time they have been retired for two years, 78% of former NFL players have gone bankrupt or are under financial
stress because of joblessness or divorce.
• Within five years of retirement, an estimated 60% of former NBA players are broke."
But it is not just professional athletes.
Of all the sectors we serve, professionals of all disciplines – athletes, entertainers, physicians, attorneys, etc may benefit the
most from our special services.
Most “professionals” are blessed with very specific skill sets, special talents, and expertise, - but rarely are they trained in or
equally proficient in finance, business or economics. So that while as professionals they may earn high incomes, they are not
particularly competent in business or investing – AND thus likewise many are not very good at picking their advisers or making
good business decisions.
Again, we are not just speaking of professional athletes or entertainers, but of all “professionals”. Perhaps some of the most
at risk professionals are physicians. Considering the recent changes to health care and their valuable contributions to
society, we are especially concerned with the plight of physicians and other health care professionals and their patients.
Our objective is simple: help professionals become (and stay) independently wealthy so that they can apply their special gifts
without any concerns or constraints. These goals will be achieved in part by maximizing their professional incomes,
maximizing investment incomes, and minimizing tax liabilities.
MAXIMIZING YOUR PROFESSIONAL INCOME
Make no mistake. We don’t negotiate professional athlete’s contracts or any other “professional” contracts. WE ARE NOT
physician practice management consultants or “agents” of any type. We do not have their specific industry expertise, and we
do not compete with them. Rather we expect professionals will have other advisers to help them maximize their professional
income. We value their participation and consider them to be an essential "part of the team" if we are to maximize your net
worth and keep you in good standing within your profession.
Excluding the alternatives of getting another job or winning the lottery, most professionals wanting to improve and / or maintain
their standard of living and accumulate greater wealth are left pretty much with three legal alternatives:
• work longer and harder,
• keep more by reducing their expenses – primarily taxes, and
• have their investments earn more.
MAXIMIZING YOUR RISK ADJUSTED INVESTMENT INCOME
Clearly, there is a limit to how much any professional can legally or practically earn from practicing their profession. The best
strategy then to maintain and even increase their standard of living is to have their investments earn more.
But you have to be smart about it. Almost any "advisor" can temporarily increase your investment yields by chasing greater risk.
And they generally make more in commissions by placing you in higher risk investments. The objective is to have your
investments earn more without taking additional risk.
To “stay on top of your game”, there is not enough time for you to keep up with all of your professional requirements that
demand your attention, so there surely isn't enough time for you to keep up with all the information about potential information
or to properly evaluate the risk adjusted return.
Professionals are already widely known easy marks for investment scam artists.
According to Medical Economics, boiler room salesmen think doctors are easy prey. According to law enforcement officials,
con artists searching for ripe targets buy lists of doctors. The scammers figure physicians are active investors who don't have
time to ask many questions about where their money's going.
Furthermore, doctors have the reputation for failing to pursue successful scammers. "If they lose $10,000 in an investment,
most busy professionals would rather forget about the money instead of hiring a lawyer to chase after a shady operator,"
according to Philip Feigin, former Colorado State Securities Commissioner (and now one of our lawyers by the way).
We ask the tough investment questions for you - BEFORE and after you have invested.
Our incentive is to maximize your long term net worth.
We achieve this in part by providing you with an information advantage: by helping you avoid making bad investments, by giving
you access to investment opportunities that are not generally available to the general public, or by giving you access to them
before the general public, and by making your other advisors more productive.
Think of us as your own personal buy side analyst and venture capitalist partner.