As a professional rugby player, it is important to keep track of your financial plan for several reasons. For example, you may see your earnings rise significantly at a young age, and so need support when deciding how to spend and save that wealth.
We will also help you prepare for the end of your playing career and the transition to a new phase of life.
Our review meetings are an opportunity to discuss your financial plan and see whether you are still on track to meet your aims now and in the future. We might also talk about any concerns you have, such as market volatility affecting your investments, or how you will fund your lifestyle after you hang up your boots.
In the time between these meetings, there are many lifestyle changes or specific events that could affect your financial plan. It is important that you let us know about these changes as soon as possible, so we can offer reassurance and support. If necessary, we may also adjust your financial plan to ensure you are still able to achieve everything you want to in life.
Here are five things we need to know about if they happen to you between our review meetings.
1. A change in employment status
A change to your employment status, whether that is moving to a new club or deciding to end your playing career, can affect your financial plan in several ways.
If you sign a new contract and your income rises, you may be able to enjoy a better quality of life now, while also increasing your contributions to savings and investments for the future. We can help you review your budget and decide on the most suitable ways to use any additional income.
Conversely, if you are unable to play due to an injury, or retire from playing, your income could fall. If your budget is more constrained, we can support you in finding ways to manage your expenses. For example, you could maintain your lifestyle using emergency savings or income from investments until you return to the pitch or explore options for a second career.
Moving to a new club might also mean you start paying into a different pension scheme. The level of contributions could change, too. You may need to check that you are still contributing enough to reach your retirement savings goal.
It could also be useful to review the fees and charges, and see which fund your savings are invested in.
We can help you check whether you are still contributing a suitable amount to your pension and achieving the necessary growth on your savings.
2. A marriage or divorce
Marriage and divorce both have a significant effect on your finances. When you marry, you might be combining your wealth with a partner for the first time, and your priorities may change as you have shared aims in life.
Equally, a divorce could change your objectives because you focus solely on your own wants and needs, without having to consider the combined aims of the couple. As a rugby player, this might give you more freedom to move to different clubs, and you might focus more on your own plans for a second career in the future.
Divorce can present significant financial challenges too, especially if your partner was also earning. You might find that you must now cover certain expenses, such as your mortgage, on your own with a single income. This could make it more challenging to meet your financial obligations now and contribute to savings for the future.
Fortunately, with our guidance, you can navigate this difficult situation and create an updated tailored financial plan as you enter this new phase of life.
3. Inheriting wealth
Receiving a large inheritance may create many opportunities to improve financial stability and reach important milestones in life. However, it can be challenging to know the most suitable ways to use the additional wealth.
For example, you could pay off some or all of your mortgage or contribute to your savings, so you are better able to fund your lifestyle when you retire from playing. You might even use a lump sum to work towards a second career by starting a business.
Additionally, you may need to consider the tax implications of saving or investing a large lump sum. If you leave your inheritance in a non-ISA savings account, for instance, and generate significant growth, you may pay Income Tax on your interest.
Alternatively, you could pay Capital Gains Tax (CGT) or Dividend Tax on investments you make with a large inheritance.
We can explain the tax implications of an inheritance and help you decide how you want to use the funds to further your financial aims.
4. A serious injury or illness
A serious injury or illness could disrupt your career and affect your finances if you are unable to play for an extended period of time.
In some cases, the household income could fall significantly, making it more difficult to manage your finances. We can help you review your budget and adjust contributions to savings and investments, so you can continue meeting your financial obligations and preparing for the future.
Sometimes, an injury or illness might mean that you have to end your playing career prematurely. In this instance, we can review your finances and help you determine what kind of lifestyle you are able to afford. We can also help you explore options for a second career and find alternative sources of income.
Additionally, we could give you guidance about protection if you do not already have it. By putting critical illness cover or income protection in place, you may have more financial support if a similar situation arises in the future.
Read more: Concerned about injuries at this time of year? Here is why protection is so important
5. Any significant unplanned expenses
Life can be unpredictable, and there are times when you may face significant unplanned expenses such as home repairs, replacing a car, or helping a loved one deal with financial difficulties.
One of the benefits of a robust financial plan is that you may be able to absorb these costs without relying on expensive borrowing because you have a healthy emergency fund.
However, it may be useful to let us know about these unplanned expenses because you may need to adjust your financial plan.
For example, if you deplete your emergency fund, you might want to increase contributions to cash savings for several months to build it up again.
A surprise cost might also highlight certain financial vulnerabilities you want to manage. For instance, you might decide that your emergency fund needs to be larger.
If you inform us about unplanned expenses, we can help you get your financial plan back on track afterwards.
Get in touch
If any of these issues arise between review meetings, then 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 article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
The Financial Conduct Authority does not regulate estate planning, tax planning, or will writing.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
Workplace pensions are regulated by The Pension Regulator.
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 life insurance 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.
Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.