Apr

27

 Spending is the trading way, but are there implications for your own risk or should we step it up to maximize our potential…

"Maybe Floyd Mayweather's spending is the key to winning"

"The best you can do is to control the spending, you can't stop it," said Jonathan Miller, a Scottsdale, Arizona-based accountant and advisor to athletes who co-founded the Sports Financial Advisors Association. "It's their money, they're going to do what they want with it."

A more realistic approach, Miller said, is to understand their psychology and spending relative to their wealth. He said he helps them make smarter spending decisions, like figuring out expenses (such as dinners or club nights) may be tax-deductible and asking more questions about each purchase. Miller said he also tries to make sure members of the athlete's entourage and team all have specific jobs.

Miller said that for some athletes, big spending is part of their psychology of dominance and confidence. So it is sometimes unwise to shut down the spending.

"If you drive up to the game or the fight in a Ferrari, or look in the mirror at your big ring or cash, that may give you confidence to step in and win," he said. "There's a psychology there that you or I could never fathom."

While Miller said that some advisors tell athletes to start planning their second career early, he said that top athletes need to think that they are invincible in order to keep winning.


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