NFL Veteran Signs New Contract
Planning For The Long Haul
Overview
After many successful credited seasons playing in the NFL, our client found himself signing yet another multi-million dollar contract — but this time it was different. This one was the largest contract his agent had negotiated, and the fact that he wouldn’t play forever was becoming more of a reality after battling through an injury last season. From all of his hard work, Jeremy had accumulated a significant amount of wealth, or as we like to call it, “Walk-Away Money” in addition to plenty of accolades for his performance in the league. With his next contract in focus, Jeremy asked our team to help him plan for what he wished to accomplish over the next 10 years.
Building The Foundation
Back when Jeremy started in the league, our team took a holistic approach to build a foundation that would set him up for the future as well as make life run smoother. We assembled his core team which included a risk management specialist, estate planning attorney, as well as a tax advisor. In the early years, it seems like everyone he met was talking about exotic investments with the promise of quick triple digit returns as well as start-ups run by family and friends. We advised against these risky deals and instead focused on building a well diversified portfolio that met the needs of his financial plan. Lastly, we coordinated his Private Banking and set up a secured line of credit which allowed him to maintain liquidity while his investments grew. Having a strong foundation and team in place made it easy to adapt as he built upon his success in the league.
Key Challenges
As a result of his disciplined approach towards budgeting and cash flow, Jeremy was able to save a considerable amount at the end of each season. As life got more complicated and his net-worth continued to grow, he faced new risks and challenges that the Benchmark team helped him evaluate and implement solutions for:
- Protecting Income, Life, and Assets: His salary for this season was much larger than in the past. Protecting this income was very important. He also was now married, and wanted to make sure there was insurance to protect not only his life, but his spouses. In addition this, Jeremy had also accumulated multiple real estate properties and personal property that necessitated a review of all property and casualty insurance.
- Tax Mitigation: When you are taxed in the highest marginal bracket, finding opportunities to save and defer income tax are key. Our team helped Jeremy and his spouse set up tax deferred and tax free investment vehicles to support them in retirement and offer asset protection.
- An Estate Plan to Accommodate the Future: Structuring an estate plan when you make millions of dollars each year makes a huge difference if something were to happen. Making sure Jeremy’s assets go where he intended in this event were a top priority. In addition to this, we also helped structure a variety of LLCs to shield his real estate assets from the public eye.
Objectives
Signing a multi-million contract was a huge day for our client and his family. His key objectives were to simplify his financial life, take care of his family, protect what he has earned, and create a nest-egg to support him after he is finished playing in the NFL.
We Step In...
Results and Impact
Comprehensive approach
From day one we have built and managed a base plan and taken a comprehensive approach to managing our wealth. Whether our client is buying a home or looking at a private investment, we conduct scenario modeling to evaluate the options and subsequently make well-informed decisions. We answer the tough questions…"what tradeoffs do I need to make if I make this investment or spend in this category?". By thoughtfully saving and investing, our client has been able to accumulate more ‘walk-away” money than he would have imagined when he started in the league.
Customized approach
After a very thorough investment management assessment we built a customized approach to managing wealth. Through regular investment review meetings, we continue to monitor and evaluate our targets for asset location and asset allocation. Benchmark thoroughly vets each investment opportunity as a part of their process and has given Jeremy great advice around the overall structure of his investments.
Charitable Foundation
His passion for giving back has grown and evolved. Through several personal experiences and challenges, we have begun to develop strategies to tax efficiently give back to our community and a variety of charities. We implemented a charitable foundation and considered ways to be generous at every financial milestone.