The front page of a top broadsheet paper this week made sad reading for those of us who love the game. Top footballers duped into poor investments; Ďcleverí tax schemes pitched at footballers with the objective of saving money but with the only winners being the advisers who peddle them and backhanders paid to agents, for introducing their clients to these schemes.
The players concerned were not inexperienced young players coming through the system, but instead intelligent senior players, family men who trusted those around them to look after their best interests allowing them to concentrate on matters on the pitch.
There is rarely much public sympathy for multi-millionaire young men playing the game that they love, but this type of treatment of our heroes is a sad indictment on how the modern footballer is seen by some around the game as a commodity to be exploited and then set aside for the next younger model.
So what is the solution? I think that it can be boiled down to three things:
- Transparency and Integrity
We will look further into each of these topics in the coming weeks. To stay up-to-date, subscribe to our newsletter, and follow us on LinkedIn Avanti Wealth Management Ltd.
There are a few golden rules to follow and you shouldnít go too far wrong.
- Have a plan. If you donít know where you are going how will you know when you get there? Our clients all know their magic number, the amount of money that they need to be able to stop working. They know exactly how much to save each month and into what and most important of all they know WHY they are saving.
- Save regularly; how much will depend upon your income and your age but as a rule of thumb around one third should be used for regular savings, investments and pensions.
- Donít invest in anything that you donít understand. If you canít explain how it works, then avoid it!
- If an investment or a scheme sounds too good to be true, then it probably is!
- Donít put all of your eggs in one basket. Property, shares, pension and cash are all-important and provide the flexibility that you will need in the future.
When the above is in place you donít need to look for risky investments with high returns and speculative tax schemes. With a proper plan you have confidence and that has huge benefits on the field.
An investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than you invested.
The levels and bases of taxation and reliefs from taxation can change at any time and are generally dependent on individual circumstances.