Life After the Game:
Financial Planning for Retired Athletes
When most people think about retirement, they picture someone in their 60s. When you retire from professional sports, you might be 28. Or 32. Or 35.
That changes everything about how you plan.
A traditional retirement plan assumes 20-25 years of withdrawals. Your plan needs to last 40 or 50 years. The strategies, the withdrawal rates, the investment approach. All of it is different when your retirement starts three decades before everyone else’s.
Your Income Cliff Is Real
In your playing days, you might earn $2 million, $5 million, or more per year. When you retire, that income drops to near zero overnight. The spending habits, the commitments, the lifestyle you built during your career. All of that continues even when the paychecks stop.
This is the moment that separates athletes who build lasting wealth from those who don’t. The plan you build right now determines which side you’re on.
Building a Retirement Income Plan
At Paragon, we build retirement income plans for retired athletes that work in three phases:
Phase 1 (Years 1-10): Bridge the income gap. Draw from taxable accounts first, maximize Roth conversions, and let tax-advantaged accounts continue to grow.
Phase 2 (Years 10-30): Shift to a blended withdrawal strategy across taxable, tax-deferred, and Roth accounts. Begin Social Security optimization planning.
Phase 3 (Years 30+): Legacy and estate focus. Minimize required minimum distributions, optimize for generational wealth transfer, and ensure the plan still holds.
The Second Career Question
Most retired athletes do something after the game. Broadcasting. Coaching. Business. Real estate. Whatever it is, it affects your tax picture, your withdrawal strategy, and your investment approach. We plan for it.
If you’re retired from professional sports and don’t have a clear plan for the next 40 years, we’d be happy to talk. No obligation.
Roth Conversions: The Window Most Athletes Miss
The year after you retire from playing is often your lowest income year. That creates a powerful tax planning opportunity: converting traditional retirement accounts to a Roth IRA while you’re in a lower tax bracket. The tax you pay on the conversion now is far less than what you’d pay later if your income recovers through business ventures, broadcasting, coaching, or investment income.
This window closes fast. If you start a second career, build a business, or have significant investment income, your bracket goes back up. The time to plan for this is before you retire, not after.
What About Your League Pension?
NFL, NBA, MLB, and NHL all offer pension and retirement benefits, but the rules vary significantly. When you can collect, how much you receive, and how it interacts with your other income all depend on your league, years of service, and age. We coordinate your league pension into your overall income plan so it works with your other sources, not against them.
FAQ
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If you retire at 30-35, you’re planning for a 40-50 year retirement. This requires a fundamentally different approach than a traditional retirement plan.
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A Roth conversion moves money from a tax-deferred retirement account to a Roth IRA. You pay taxes on the conversion now but all future growth and withdrawals are tax-free. The years immediately after retirement, when your income is lowest, are often the best time to convert.
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Yes, but the rules vary by league. NFL players need three credited seasons. NBA players vest after three years. Benefits depend on years of service, and optimal claiming strategies vary.
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Many retired athletes do. The key is building the business into your financial plan so the income, tax implications, and risk are all accounted for alongside your existing wealth.
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We integrate investment management with tax preparation through Paragon Tax, build portfolios with individual stocks for active tax-loss harvesting, and we’re fee-based fiduciaries. Orleans Darkwa, a retired NFL running back, leads our Sports Division.