Handling Risk

It is important for every athlete to deal with the risks and challenges that will face them both during their playing careers and after their careers. One of the most effective ways to make sure that they have enough money to last them throughout their entire lives is by seeking good retirement plan management.

In a previous post I discussed how important it is to maintain the power of attorney and control over all of your financial assets.As long as you maintain control of your money, you can look for a qualified management company that will handle your portfolio for you. When you are dealing with larger sums of money, you need to take a conservative approach that focuses more on capital preservation than capital appreciation. You don't want to risk losing your hard earning cash to some investment scam.

Be sure to invest with a broker that offers protection for all of your assets. The best brokers have SIPC protection in which your assets are covered up to $500,000 per account. You should look for a reputable company to handle your retirement plan. You need to find one that has been around for years and has a sterling reputation in the industry.

Be sure that you clearly understand everything that you are investing in and where all of your money is. You should know the procedures for how long it will take to withdraw your assets and any penalties associated with withdrawal. Also,be sure that the bulk of your money is invested domestically and not in offshore accounts. Offshore accounts are often associated with scams and it can be very difficult to recoup your money from overseas institutions.