This article has originally been published in Kapital, a Norwegian financial magazine .
Read the original article here.
The PyeongChang 2018 Winter Olympic Games took place just a few weeks ago, and what a set of Games these were for the Norwegians!
Winning 39 medals in total, the national team surpassed the USA’s record of most medals won at a single Winter Olympics. This fantastic achievement was unexpected, as highlighted by various journalists* who were keen to point out that the Norwegian team ran out of commemorative shoes during their medal ceremonies.
Being ready for success
The irony of Olympians, for whom preparedness is a prerequisite to success, inadequately prepared to celebrate victory was not lost in the media. But after all, having the right shoes to jump on a podium isn’t what an athlete tends to worry about, is it?
Preparation is important in all aspects of an athlete’s life, and this includes financial planning. In their early careers, many athletes will be focused solely on one objective – winning their match or race or event. However, as they become more successful they need to think about how to prepare for the future after their sporting careers. Recent research has highlighted that 78% of NFL players face bankruptcy or serious financial pressure within only 2 two years of retiring, and 60% of NBA players face a similar situation within 5 years* . These are shocking statistics, especially given that these athletes are some of the highest earnest in any sport around the world.
Sports stars tend to have shorter careers, and therefore often focus on their shorter term objectives. However, a shorter career also means a shorter time span to build their wealth and it is essential that these individuals find advisors that are able to help them plan for the longer term too.
Athletes may not necessarily have had the same experience of commerce and finance as their HNWI peer. While there is no ‘one size fits all’ solution to effectively managing wealth, expert wealth planning and associated long-term solutions are therefore a must.
Planning for financial stability with life insurance
From a regulatory perspective, unit linked life insurance is an efficient vehicle to support long-term wealth planning across the globe in multiple jurisdictions. Unit linked life insurance solutions are often used to support cross-border investments, therefore providing great portability from one country to another. It caters to a wide range of family situations, international lifestyles and changes in residency.
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The investment strategy is flexible and can be used in conjunction with the asset manager chosen by the policyholder.
Additionally, unit linked life insurance policies allow payments to be made at any time and there are limited restrictions to withdrawals, therefore has the flexibility to accept top ups and grow in tandem with the sportsperson’s career.
The more successful an athlete becomes, the greater attention should be paid on their long term financial planning to secure a bright future, way beyond the stadium lights!
By Marjanne Olesen
Country Manager Norway
Lombard International Assurance