Rule Number 6: Create An After Retirement Income Stream

The best time to start planning for your life after retirement is during your playing career. You can set yourself up for a cushy retirement by diversifying now. One of the ways that athletes can set their post retirement portfolios up for success is by dividend investing. Dividend stocks are companies that have yields that are above 3%. This may not seem like a great return on your money but for an athlete with a substantial sum of money, dividends can provide a stream of income to live off of.

Imagine that you invested $1 million dollars in a rock solid stable company like Pfizer. Pfizer has a tremendous amount of free cash flow and a great balance sheet. The stock is currently yielding 4% which equates to more than $40,000 a year in annual dividend payments. That is just on the income side. The stock also has slow growth potential which could offer provide stock appreciation for investors as well over time.

Pfizer is just one example of a dividend stock. You can get yields over 5% from the highest yield divided stocks. Telecommunication and healthcare stocks have yields of 5.5% and up. They have great growth prospects and pay out lots of income as well.

There is no reason for athletes to dabble in incredibly risky stocks and business venture when they already have cash. Their portfolios should consist of safe stable investments that will not lose their capital. Learn how to buy stocks that will work for you buy doing your homework first.