Be careful investing too much in property
Stuart McCarthy, Private Client Director at Brown Shipley, says UHNW sports stars should be advised to save wisely for that eventual rainy day which can arrive a lot sooner than they think.
Many sport stars have been recently badly advised, especially on taxes. Why do you think that is?
Unless individuals take personal control of their wealth and are financially competent it is important for sports stars to surround themselves with a trusted group of advisors that would generally include their banker, accountant and agent. There is a large amount of income available to a variety of sporting stars but particularly footballers. It may seem a significant amount when they are playing but they must be advised to save wisely for that eventual rainy day which can arrive a lot sooner than they think.
What lesson they never learn?
Buying too much property which is highly leveraged. There are numerous cases of sports stars reaching their twilight income years and finding that whilst they are asset rich they are cash poor. The creation of that 12 month cash pot or liquid investment portfolio should always go hand in hand with the £5-10m property in Surrey or Cheshire.
60 second interview with James Bunker, Vardags
In our 60 second interview series, Citywealth speaks to James Bunker, Director and Head of Property at Vardags about the challenges of advising foreign clients who are unfamiliar with UK property laws, and why the traditional model of buying and selling properties is ripe for transformation.