Are you a certified financial planner and want to target sports athletes? If YES, here are 7 easy steps to become a financial advisor for professional athletes. If there is one thing professional athletes really suck at, it is personal finance. It is not uncommon to see a 5-7 figure earning professional athlete burn through his entire savings-if any- within a few years and by the time they retire, they are broke and back to square zero.

The good thing is that this generation of athletes is aware of the inherent financial mismanagement problems that come with their chosen careers, so they rely on the help of professionals who can help them manage their funds and investments, and make sure they have something to fall back on when they retire.

The demand for financial advisors by professional athletes is on the rise. Financial advisors help professional athletes to make smart decisions concerning their financial management. They help to assess the athlete’s financial positions and understand their needs and goals in order to come up with tailored financial advice for them. You can earn a decent annual income providing this service to professional athletes in the country, and here’s how to go about it.

7 Easy Steps to Become a Financial Advisor for Professional Athletes

1. Get Professionally Certified

You’ll need to be a professionally qualified financial advisor, and legally certified to be able to work with athletes. You can work as a financial advisor with either of the following professional certifications:

  • Certified Financial Planner (CFP)
  • Certified Financial Analyst (CFA)
  • Certified Public Accountant (CPA)

All three certifying bodies will require you to have at least 3-4 years work experience, and pass a professional examination.

2. Obtain a Federal License

In addition to your professional certification, you’ll also need a professional license to work as a financial advisor in the US. The license is issued by the Financial Industry Regulatory Authority (FINRA) and before you can be issued this license, you’ll have to pass the FINRA Series examination. The FINRA examination is in two stages:

  • FINRA Series 6

When you pass this test, you’ll be issued a license that allows you to sell a limited group of investment products like variable annuities, mutual funds, and so on. To pass the series 6 test, you must work for a firm registered with FINRA, and pass an examination that features 100 multiple-choice questions.

  • FINRA Series 7

The FINRA Series 7 certification qualifies you to act as a general securities representative, and buy and sell all securities products including mutual funds, bonds, stocks, and fixed-income investments. You’ll be required to take and pass a 250 multiple-choice question examination and work for a firm registered with FINRA and already possess the FINRA Series 6 license to be able to secure the FINRA Series 7 license.

3. Obtain State License

The North American Securities Association issues a license known as the NASAA Series license to investment advisors who want to practice in all states in the US except Wyoming. The certification also comes in two stages; NASAA Series 65 which allows you to practice as a financial advisor, but does not qualify you to buy and sell securities yourself, and the NASA Series 66 exam which is only issued to financial advisors with the FINRA 7 license, and qualifies you to buy and sell investment products to your clients.

4. Gather Some Professional Experience

The financial industry is a very technical one, and no one will be willing to do business with you when you are a greenhorn. You need to be able to display sufficient background experience. You need to be able to show that you have worked with, and managed athletes’ portfolios in the past.

You can start with interning for financial advisory companies that are renowned in the athletic industry. When you work with such companies and gather sufficient knowledge from them, you can now move on to set up your own private practice.

5. Set up a Private Practice

If you wish, you can continue to work with financial advisory companies to manage athletes’ portfolios. You can earn an average of $60,000 annually doing this. This is a great option for you if you haven’t acquired your professional license yet.

You can gather sufficient experience while you study to pass your professional examinations. After you have obtained your professional certification, you can now set up your own private practice and work individually to manage athletes’ financial portfolios.

You don’t necessarily need to set up an office space, you can work from a home office and arrange for a good meeting place where you and your potential clients can always meet whenever there is a need for a physical meeting. But it helps to observe other financial advisors in your city and understand their modus operandi.

If they all have offices, it means you should get one too so that it doesn’t look out of place to your clients that you don’t have an office, but if there are other successful advisors who do not have physical offices, you can adopt a similar operational strategy for yourself.

If you choose to work from a home office, it’s important to plan your meeting place carefully. Professional athletes are wealthy and are used to luxury. They also love privacy so make sure you pick a meeting place that would meet all of these standards.

6. Look the Part

Professional athletes are used to glitz and glamour and are usually impressed by it. If you want to convince a professional athlete that you can manage his finances, you have to look the part – dress well, drive a good car, and speak well. The impression they form about you will go a long way in determining whether they’ll decide to do business with you or not.

7. Network with Other Professionals in the sports industry

You want to network with professionals like sports coaches, athlete managers, club patrons and officials, and all other professionals that work closely with athletes, and can influence them. You need these people to introduce you to some of the athletes that you can pitch your business to. In fact, they’ll be more willing to meet up with you and do business with you if you come recommended by someone else that they trust.

So take out time to get to know, and earn the trust of professionals in the sports industry before you start pitching your business directly to athletes. You can even offer incentives to these professionals for every athlete they help you set up a meeting with. They’ll be motivated to go all out on your behalf if you offer the right incentives.

8. Advertise Within The Industry

It’s a good thing that you already have a specific target market- you don’t have to waste too much money advertising to the general public with the hope that a professional athlete will notice your advert. What you need to do is to focus your advertisement on industry-based publications like industry magazines, events, sports shows, and other sports industry media that’ll get you the attention of the athletes faster.

9. Target Newly Signed Athletes

It’s especially helpful to target new professional athletes that have only been recently signed. You can easily get these categories of athletes to do business with you because there is a great chance that they don’t already have financial advisors that they are working with.

Don’t forget to do a good job and earn their trust so that they can give you referrals that will help you grow your business faster.

Frequently Asked Questions

1. Who Is Qualified To Be An Athlete’s Financial Advisor?

To be qualified for an athletes’ financial advisor according to Brokerage firms, every applicant should at least acquire a bachelor’s degree from an accredited educational institution. The major can vary though, but most are in finance, marketing, or even in business.

2. How Much Do Nfl Players Make?

The median wage for all NFL players is about $860,000. A rising first-year rookie has a minimum payment of $435,000.

3. At What Point Do Professional Athletes Need A Wealth Management Advisor?

While some experts say a good rule of thumb is to hire an advisor when you can save 20% of your annual income, others recommend obtaining one when your financial situation becomes more complicated, or you want to increase your retirement funds.

4. Why Is Education Important In Becoming An Nfl Player?

Apart from experience and maturity, the NFL also favors players who have experience playing college football. So, according to a paper writing service, a university education is an added advantage for prospective professional football players to fulfill their dreams.

5. What Can You Do To Help Your Chances Of Becoming An Nfl Player?

The following are some necessary skills you need to consider in becoming an NFL player;

  • Speed
  • Endurance
  • Risk assessment
  • Spatial awareness
  • Tactical knowledge
  • Strength and power
  • Agility and coordination
  • Composure and mental strength
  1. What Is The Nflpa Registered Player Financial Advisors Program And How Does It Help Nfl Players?

The NFL registered Players financial advisors Program is a program that provides NFL players with access to a list of financial advisors who are deemed qualified by the NFLPA. The program was created in 2002 after a series of many investment schemes targeted at professional athletes.

It provides guidance to Nfl players on how to invest, manage their money, and also reach their financial goals. Services provided include; financial planning, taxes, and estate planning.

  1. What Does The Vermillion Financial Planning Process Include?

The vermillion financial planning process include;

  • Analyzing and evaluating financial status
  • Implementing financial planning recommendations
  • Establishing and defining the client-adviser relationship
  • Developing and presenting financial planning recommendations and alternatives
  1. How Do You Pull Your Finances Together?

The following are some strategies you need to secure/gather your finances;

  • Read books about personal finance
  • Avoid using your credit cards
  • Cut-down monthly bills
  • Plan a monthly menu
  • Pay off your debt
  • Start budgeting
  • Cancel cable
  1. What Is The Initial Meeting Process For Investment Services?

It is an exchange of questions, concerns, ideas, and a discussion of your investment goals. It is during this time that you have a chance to ask one of the advisors all the questions you may have.

  1. What Are Some Of The Unexpected Challenges Athletes Face?

    There are some (unexpected) mental challenges that athletes face which include; focus, concentration, composure, goals, nervousness, anxiety, and lack of mental preparation.

11. How Can You Protect Your Income If You Get Injured?

Through these possible ways, you can protect your income if you get injured or fall ill;

  • Life insurance
  • Trauma insurance
  • Income protection insurance
  • Total and permanent disability (TPD) insurance
  1. What Does The Comprehensive Financial Planning Process Include?

Comprehensive financial planning involves the detailed review and analysis of all facets of your financial situation. This includes areas such as cash flow analysis, retirement planning, risk management, investment management, tax management, and estate planning.

13. What Are Asset Under Management Fees?

An assets-under-management fee is a billing method based on the number of assets you have with a financial advisor. This approach is popular with asset management firms, but other forms of compensation are available.

  1. What Is An Individual Retirement Account?

An individual retirement account (IRA) is a savings plan with tax advantages that individuals can open to invest in for retirement.

15. What Is A Qualified Retirement Plan?

A qualified retirement plan is a retirement plan established by an employer mainly designed to provide retirement income to designated employees and their beneficiaries, which meets certain (IRS) Code requirements in terms of both form and operation.

16. How Much Money Do You Need To Save Each Year So You Have The Freedom To Retire?

Many financial professionals recommend that you account for between 70% and 80% of your pre-retirement income each year in retirement. This means, if you currently earn $60,000 per year, you should plan to spend between $42,000 to $48,000 annually once you get retired.

17. Why Is Financial Planning Critical For Nfl Players And Professional Athletes?

A goal-based plan encourages athletes to focus on what is important for their future life. A financial plan can also serve as a road map to a second career since most players will be out of work by age 30, with much lower incomes on the horizon.

18. What Is The Best Financial Planning For Professional Athletes?

Managing cash flow is the best and one of the most important aspects of financial planning for professional athletes. Note! How you spend your money today will dictate many aspects of your future.

19. How Do You Know If Your Existing Advisor Or Broker Has Your Best Interest At Heart?
  • They are committed to working with you
  • They take a holistic view of your finances
  • They have the support of an investment team
  • They develop and customize your investment strategy