When we think about well-being as athletes, the focus often falls on physical and mental health. But financial well-being, an equally critical aspect of balance and security, is often overlooked. Taking control of your financial health and having a plan in place is essential for your long-term future—whether you’re at the height of your career or nearing the end of it.
Here’s how you can improve your financial well-being, no matter your sport.
Your Own Financial Well-Being
Taking a proactive approach to your finances is one of the most effective ways to safeguard your future. By engaging with your financial adviser (if you have one), asking key questions, and learning the details of your finances, you can not only boost your financial knowledge but also secure a lasting legacy for yourself and your family.
Financial literacy is not just for accountants—it’s for everyone. The more you know about your financial position and future plans, the better prepared you’ll be to make informed decisions about taxes, investments, and savings. Don’t shy away from taking ownership—ask questions, stay involved, and take charge of your financial health.
If there are areas of finance you’re unsure about, our online financial education platform offers a range of courses to help, including some that are completely free.
What to Know About Your Financial Adviser
If you’re working with a financial adviser, trust is essential, but it’s not the only factor to consider. You also need to understand their qualifications, experience, and regulatory status.
In the UK, financial advisers must be registered with the Financial Conduct Authority (FCA), which ensures they follow strict guidelines and that you’re protected by law. Checking their registration is especially important if you or your adviser are based outside the UK, as financial advice rules vary by country.
Additionally, ask about their qualifications. Do they specialise in areas such as tax planning, investments, or mortgages? The right qualifications can give you greater confidence in their advice.
Independent vs. Restricted Advisers
One important distinction to understand is whether your adviser is Independent or Restricted:
- Independent Advisers: Offer advice across the entire market, providing access to a broad range of options without bias.
- Restricted Advisers: Suggest products from a limited range of providers. While their advice can still be valuable, it’s important to know the difference to ensure you’re getting the best advice for your needs.
Advisers are required to disclose their status, so don’t hesitate to ask.
Who’s Getting Paid? And How Much?
You’ll be paying for financial advice, but it’s important to know if anyone else—such as your agent or manager—is receiving a fee for referring you. Ensure all fees and arrangements are clearly outlined in writing so you have complete transparency about where your money is going.
How to Select Your Adviser
Many athletes are introduced to financial advisers by agents, clubs, or family members. While this can be a good starting point, you’re not obligated to stay with them. Do your own research and make a change if the relationship isn’t working.
Here are a few things to consider:
- Location: If you prefer face-to-face meetings, choose someone nearby. If online meetings work for you, ensure they’re accessible across time zones.
- Expertise: Athletes have unique financial needs, from short careers to international income. Select an adviser experienced in managing complex, high-earning situations.
- Privacy: Ensure your adviser handles your information discreetly, especially if you’re in the public eye.
- Trust and Relationship: This is a deeply personal relationship. If trust or rapport is lacking, consider other options.
- Scope of Advice: Decide if you need comprehensive financial planning or advice in specific areas like tax or investments.
- Clarity of Communication: Avoid advisers who use excessive jargon. They should explain everything in plain, understandable terms.
The Bottom Line
As an athlete, you know the importance of a strong support system. A trusted financial adviser is a key part of that system, helping you secure your future beyond your career.
It’s your career, your money, and your future—so take control. A little time spent planning today can make all the difference tomorrow.
Need help building your financial knowledge? Explore our online learning platform for courses designed to help athletes take control of their financial well-being.
Frequently Asked Questions (FAQs)
1. Why is financial well-being important for athletes?
Athletes often have short careers with high but fluctuating income. Financial well-being ensures you can maintain stability, achieve long-term goals, and secure your future after retirement from sports.
2. What is financial literacy, and why does it matter for athletes?
Financial literacy means understanding and managing your finances effectively. For athletes, it’s essential for making smart decisions about saving, investing, and taxes, so your earnings last beyond your sports career.
3. Should I work with a financial adviser as an athlete?
Yes, a financial adviser can help manage your unique income streams (e.g., contracts, endorsements) and create a strategy for savings, investments, and taxes. They’re especially helpful for long-term planning.
4. How can I verify if a financial adviser is legitimate?
In the UK, advisers must be registered with the Financial Conduct Authority (FCA). You can check their credentials on the FCA register. Ensure they have experience working with athletes or high-income clients.
5. What’s the difference between an Independent and Restricted Financial Adviser?
- An Independent Adviser offers advice on products and services from across the entire market.
- A Restricted Adviser can only recommend products from a limited selection of providers.
Knowing the difference ensures you understand the scope of advice you’re receiving.
6. How can I improve my financial literacy as an athlete?
Take advantage of resources like online financial courses. These can teach you about budgeting, investments, and taxes. Engaging with your finances and asking questions also helps build confidence.
7. What should I look for when choosing a financial adviser?
- Experience: Ensure they’ve worked with athletes or high earners.
- Privacy: Check how they handle sensitive information.
- Qualifications: Look for expertise in areas like tax planning or investments.
- Communication: They should explain advice clearly without jargon.
8. How can I ensure my financial privacy?
Choose an adviser with strict confidentiality policies. Avoid those who share client information on social media or use it in marketing without permission.
9. What fees should I expect from a financial adviser?
Fees can include flat rates, commissions, or percentages of your portfolio. Make sure all fees are transparent and provided in writing, and check if your agent or manager receives commissions from the adviser.
10. Can I switch financial advisers if I’m not happy?
Yes, you can change advisers at any time. If you feel their advice isn’t aligned with your goals or trust is lacking, it’s your right to look for a better fit.