So you see that, you see maybe how it begins to affect their home life, and
things start to deteriorate there.
So, there's a lot of signs.
And again when possibly you,
you try to work with the agent to try to serve as the caregiver so to speak and
have them intercede and talk to the player and say hey, Jim, Joe,
we need to have a conversation discussion and let's try to get some help.
And, that's again where if you have a strong agent and
his concern is truly the player and not the fee that the player's going to pay
him, it can really add some value to the relationship and help some of these
young men and such make good decisions along the way.
>> So, staying with baseball with your permission.
>> Sure. >> We'll talk about one of
your highlight clients.
How do you manage the evolution of a career?
>> So again, it goes back to the basics, Peter.
Use the analogy a lot of times with clients.
Athletes are very visual,
and such. You kind of draw them up the pyramid.
>> Yeah.
>> And why are the pyramids still standing today?
Because they have a solid foundation,
a solid base, and the same thing with athletes.
So you structure that portfolio that we talked about of bunker money,
tax free bonds, that solid foundation to generate.
That passive income when that ultimate, retirement day will come,
and then you can grow the pyramid from that base and such.
And it's not, brain surgery, but
sometimes to get players to buy into it, is the difficult part when there's so
many other kind of sexier, tantalizing investments out there.
So you gotta just continue to reign them in, and
keep them focused, and as I like to say, just get on base and advance the runners.
[LAUGH] That's all we want to do here.
We want to advance the runners.
[LAUGH]. >> Don't get picked on.
[LAUGH] >> Yeah, that's right.
>> Don't get picked on >> Yeah.
Yep. >> And, I mean,
the perceived wisdom is, put them on an allowance, almost.
That's sort of too old school, right?
>> It is.
>> You can't get away with that anymore.
>> You can't.
Again, we tell our clients, there are three things any of
us can do with our money, Peter. It's spend it, save it, and pay taxes.
That's it. Spend, save, and pay taxes.
So I can pretty much tell a client what they're going to owe in tax.
We'll do a tax projection and, so this much, let's keep it simple,
half of it's going to tax.
So now you got half left.
It's difficult to put people on a budget.
I can't put my wife on a budget, [LAUGH] how can I put a client?
So what we do is we set a savings budget instead.
>> Mm-hm. >> Where we're going to,
our goal or our plan is to save 30, 35, 40, 45% of your gross income.
That's the budget.
What's left is for you to spend and enjoy and rightfully so.
I mean. >> Mm-hm.
>> These guys work hard and
they should be able to enjoy, you know, their, their money and
such, on some of life's pleasures.
So, we focus more on a savings budget then we do a true spending budget.
>> Tough question in that regard.
Again hypothetically a prenup is that something you recommend or
it all depends on thinking back to
>> Yeah. >> some of our experiences there.
>> Yeah, absolutely.
It's part of the pitch that I make,
in front of the young man and to the parents.
It's our job to advise.
And that's all we can do.
We can recommend it.
But at the end of the day, the young man or
the young lady needs to make that ultimate decision.
And some do.
And some don't.
And I've had a client that had a prenup,
and ultimately had it,
I don't know if the word's annulled or modified because you know what?
Things are great, and it's not an issue any longer.
So, we do advise on that.
We always use outside council.
>> Mm-hm. >> Obviously.
and you need that to make it effective and such.
We've had a prenup challenged a number of years ago and
it held up in court, so they are effective if done properly and such.
So again, we recommend it, but ultimately, it comes down to
the client making the decision whether or not to pursue it.
>> Let's finish up by going to, okay now we're in the last stage of the career.
But had this horrific accident.
You guys at his house.
How do you protect him as he goes into his retirement years.
He's now playing some senior tennis.
Might do some broadcast.
but everybody's heard and read now about this terrible thing happened at
his rental home, make it somewhat hypothetical John.
But what kinds of insurances do you have in place for someone like that?
>> Sure.
Again, you were very fortunate,
it was a horrific situation, all documented.
And three or four people passed away, which was horrible.
Fortunately had all the proper coverage's in place with a
premium insurance company which means when there is a problem, there isn't a problem.
There are adjusters on the ground and
checks will be written and such, so
that's where it's important.
Whether is anybody out there to have something, such as an umbrella policy,
to provide you that extra layer of liability insurance in the event of
a situation like that where there could potentially be a lawsuit or such.
So whether it's a situation at a home or driving a vehicle.
We're all guilty of texting when we drive or on the cell phone.
>> Yeah. >> So that to have that extra layer of
insurance, because you know most policies that we
have only have a half a million dollars say limit of liability.
If there's a situation and you get sued for two, three, four, five, million.,
who's writing that check if you don't have it?