[MUSIC] Now you get to the fourth and final stage of a career. He's got some injuries, financial standpoint he's set for life. What factors again, generally, I'm going to keep playing or not, as a financial advisor you say, you don't have to. How does that interface work? >> Yeah. These guys love to play. I mean, they're competitors, they've been doing it since they were pee wee football and such it's in their blood. So, they make their own decisions. >> Mm-hm. >> Or the doctors advise them in terms of decisions, but for other players, they may not have the ability to make or they made need to be hard to play longer, because they didn't save enough. Or, they will have a concussion. >> Mm-hm. >> Which is truly life threatening in so many regards. >> And then you finally say, that's it, I'm not going to continue playing. >> Yeah, and this pain killer class action. I mean that's the next shoe to fall, not asking for any comment, but that's gotta be the kind of thing where you, let's switch to baseball, just real quickly. You have an incredible stable of clients there too. Going back to the steroid era, I mean, at what point can you sort of see that infiltrating a client's career, and you feel like from a financial standpoint like you said before, with the doctor, it's time to walk away? >> Yeah, especially with steroids, you did see it, and just the physical transformation of the player. 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? The client is. So, that's really one of the basics that we recommend to all our clients in terms of having a insurance program in place, where you have an umbrella policy to provide those protections in the event of a catastrophic type situation and all, so. >> And last area. This whole social media and what happened to Manti Te'o. >> Yeah. >> And, you know, phishing on the Internet. How do you protect on the social media basis? Some of your premier clients from having bad things happen on the internet. >> Don't do it. >> Don't do it, oh. [LAUGH]. >> Don't do it. [LAUGH]. >> I work with a number of clients that just don't participate in that, so that's the simple answer. Again, being on the financial side, we don't get involved in those types of situations >> Sure. >> more, maybe the marketing >> Right. >> guy, marketing agent or the actual agent itself. But I think, simply you just don't do it. You just don't get involved there because you hit a wrong button or a wrong key, and a lot of bad things could potentially happen. [LAUGH] You know? >> Not to you and me. >> Yeah. [LAUGH] Never. Never. >> Well we want to thank John, so very, very much for being so generous. We've been through the four stages of professional athletes career. Beginning, middle, end, including disability and coverage in the event of a disaster at the end of a very distinguished career. And John, we just want to thank you and our audience does too. >> Yeah. Thank you too. >> For being such a generous guest with us today. >> Thank you Billy. Thank you. Thank you Peter. >> Thank you, thank you. That was great. [MUSIC]
