When it comes to the personal lives of professional athletes, few things are talked about more than the money they make. The kind of money that many players in the NFL earn would set them up for life, yet you can probably think of a time when you heard about a player losing it all and having nothing to show for his years in the game after he stopped playing.
But that likely isn’t going to be the case of Glover Quin.
Quin, a safety for the Detroit Lions, is practically the picture of a frugal man when it comes to his lifestyle versus his NFL salary. When he first entered the league, he drove a 2009 Yukon Denali, a car that retailed new for around $50,000. That’s an expensive car for the average person, sure, but far below the scope of what someone making money in the NFL could afford.
Even so, after Quin signed his first contract, he continue driving that same 2009 SUV. You see, he entered the sport not just to win games, but to set himself up financially for the rest of his life.
Modest Living, Monetary Success
As Quin progressed through his career, he got aggressive with what he did with his money. In the case of many players that means buying the nicest car, the biggest house, and anything else flashy that money could buy.
In Quin’s case, however, that meant working hard to lay a solid financial foundation instead. You see, he took a full 70 percent of his yearly take-home pay and put it towards his investments during the first three years of his career. After that was settled, that left him with $72,000 per year for he and his family to live off of, which works out to about $6000 per month. He resisted when teammates would encourage him to stop being cheap with his money, instead looking toward his future and what he wanted to do after he had stopped playing the game.
He formed a plan, and he stuck to it.
In his own words, he developed a sort of tunnel vision that blocked out things like expensive cars and jewelry. This allowed him to live on a monthly allowance that equaled what some of his fellow players seemed to spend in a day.
He also had the advantage of graduating from the University of New Mexico with a degree in business, so he came into the NFL with an understanding of just how important investing is over a long-term period.
When it came to where Quin would park 70 percent of his pay so that it could generate wealth in the future, he knew the importance of diversifying so as to increase his chances of netting returns.
The Business of Building Steady Generational Wealth
I like to use Quin’s example when explaining the importance of investing for the future to other NFL players because he’s a guy who has done everything right. His private portfolio is set up in such a way that, over time, he is able to confidently pursue his financial goals.
That said, while I am a fan of his investing philosophy, I can’t say that I’m as much of a fan of his choice of investment vehicle. You see, in my opinion, Quin chose to allocate too much of his money to private investments. That essentially means that he would seek out up-and-coming businesses, become an investor, and reap the rewards if those companies grew.
Have you ever heard of the TV show ‘Shark Tank’? Same idea.
While private investment can bring in some massive return on investment, it generally isn’t something I recommend for my clients because of the high risk. The ugly truth is that only a small minority of businesses succeed, and an even smaller number of those successful companies make big returns. In a sense, investing privately is a massive gamble, and one misstep could easily wipe out an entire fortune.
Instead, investment strategies that I build for my clients involve conservative investments that seek to not only build your wealth during the good economic times, but appropriately manage it during the lean times. These conservative portfolios that I build for my clients often include a mixture of stocks and investment grade bonds.
With the uncertainty that the economy faces today, you want to have as strong a hedge as possible against any downturns. That means making sound, diverse, investments based on logic and thorough research rather than emotion and gut instinct like many do with their investments.
Sticking to this type of game plan of disciplined saving and investing, and having a playbook is in the pursuit to growing your wealth. Remember, you’re not just setting yourself up for the rest of your life, but your children and their children as well.
So get in touch with me today. I’ve made my career helping players like you build strong financial foundations and now I’m looking forward to helping you the same way.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. The examples presented are hypothetical and are not representative of any specific situation. Your results will vary. The hypothetical rates of return used do not reflect the deduction of fees and charges inherent to investing.