In a sport as physical as rugby, the potential for a long-term or even career-ending injury is a sad but ever-present fact of life.
Even with great advances in medical technology and enhanced conditioning, the wear and tear on your body can result in your playing career ending prematurely.
This was brought starkly to mind by the recent news of the retirement of Rory O’Loughlin, who suffered a serious shoulder injury at the start of the season and has now been advised to retire at the age of 30.
Clearly, your career coming to an abrupt and unplanned end will entail a lot of worry and stress, not the least of which will be the financial challenges of facing up to a future without the certainty of a professional contract.
So, in this article, discover five great reasons why having a financial planner working for you if your career ends before you had planned can be incredibly reassuring.
- You will have someone in your corner who understands the issues you face
Compared to other occupations, the working lives of professional sportspeople are short and can be taken away through injury at any time.
You will likely have assumed that you will have earned enough money during your playing career to at least go some way towards guaranteeing a comfortable standard of living for you and your loved ones for years after your playing career finishes.
So, the end of your career will mean you have to face a future potentially outside the sport, and deal with changes in your financial circumstances that you may not have foreseen.
These will include the loss of your income, as well as other issues such as taxation, savings, and your wider personal financial arrangements.
Having someone who understands all these issues and how they can be affected by a career-ending injury can be invaluable and give you great peace of mind.
- They will help you manage your wealth
As well as helping you deal with the immediate realities brought about by the unplanned end of your playing career, an experienced planner can also help you plan ahead and protect your wealth for the future, as well as prepare for a new stage in your life.
You will have always been aware that the period of your peak earnings could be very brief. Ideally, your financial plans will have reflected this and from the time you signed your first professional contract, you will have been looking at long-term arrangements to secure your future.
The planner you have worked with will have got to know you, helped in your planning, and become a valuable financial confidant and guide.
They, and you, will have always been aware that your plans will need to change at some point. So, they will be able to help you adjust these plans to reflect your circumstances and deal with any issues you will face.
- They will ensure any insurance policies you have are paid out
Part of the advice process at the start of your professional career will have been around ensuring you have the right arrangements in place to protect your wealth in the event of a serious injury.
After all, you insure other valuable assets such as your house and car, so why would you not insure the most valuable asset of all: your ability to earn a living through playing rugby?
The type of arrangement you are likely to have set up will pay out a lump sum of money, perhaps alongside a regular income for a fixed period of time, after your career is cut short and you are no longer under contract with a club.
The planner you work with will ensure that any payout you are due is made in a timely fashion and then guide you on how best to manage the money you receive to help you secure your future.
- They will help you review and adjust your financial objectives
The sudden end of your playing career could well result in you seeing a steep drop in your earnings and perhaps no immediately apparent source of alternative income.
Such an occurrence will be a worry at the best of times. But if you are in your twenties or early thirties, it could be particularly impactful.
As a result, it will be important to take a step back and review your financial position, assets, and liabilities, and to start the process of adjusting your financial plans.
With advice and guidance from your financial planner, your new career path will evolve, and your plans and finances will change to reflect this.
- They will support you with the emotional effects of a big life event
It is quite understandable that the premature end of your playing career will be an emotional and traumatic time.
You will clearly need to take time to mentally adjust to not being a professional sportsperson anymore, with all the challenges that will entail.
You will also need to ensure that any financial decisions you make at this time are based on a consideration of the facts, rather than knee-jerk instincts.
According to City National Bank, a study carried out by Nobel prize-winning psychologist Daniel Kahneman revealed that emotions contribute to around 90% of our decisions, while logic only factors in for around 10%.
By acting in a way driven by your emotions, especially at a time when you could be very emotionally sensitive, you could inhibit your future ability to reach your new financial goals, and end up making decisions that you later regret.
An experienced financial planner will be able to help you make the correct decisions as you adjust to your new career once your playing days are over.
Get in touch
If you need advice or guidance when it comes to your financial planning, please do get in touch with us at DBL Asset Management.
Email enquiries@dbl-am.com or call 01625 529 499 to speak to us today.
Please note
This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
Note that financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.
