Introduction
Dermontti Dawson was a former Pittsburgh Steeler who appeared in the NFL from 1988 to 2000. Despite a successful career, he experienced significant financial issues and declared bankruptcy in 2010, having around $70 million in debt (Andrew, 2022). Overinvestment in real estate, according to his instance, is a primary source of post-NFL bankruptcy. To better prepare for a career after football and retirement, he should have diversified his funds and not relied too much on one asset type (Kapoor, 2022). He should have also considered investing in low-risk, low-cost index funds, which might have helped him accumulate money.
Discussion
Additionally, it would have been wise to adopt a more conservative approach to investing in the real estate market by seeking out investment opportunities in which he had a controlling share. If he had done so, he would have been better positioned to manage his resources and make decisions in his best interests. He should also have hired appropriate financial and legal advice to aid him in navigating challenging investment decisions and protecting his assets from legal judgments.
Mark Brunell is a former NFL quarterback who spent 17 seasons with the Packers, Jaguars, Saints, Jets, and Redskins. He filed for bankruptcy in 2011, owing $24.8 million in debts after earning an estimated $50 million during his career (Andrew, 2022). He made the blunder of significantly investing in high-risk ventures such as mega-mansions and real estate investments. He should have divided his investments to avoid becoming bankrupt by relying on more than one asset kind.
Conclusion
In particular, investments in low-risk assets like mutual funds and low-cost index funds may have delivered steady returns. He should have also sought expert advice before investing, which may have saved him money. Furthermore, he could have adopted a more conservative approach to real estate investments, investing in less expensive structures with a better chance of producing consistent rental revenue. Finally, a broader investment portfolio and competent advice may have helped him better prepare for retirement and prevent financial catastrophe.
References
Andrew, L. (2022). 13 NFL Players Who Lost Millions. Go Banking Rates. Web.
Kapoor, J. R. (2022). Focus on Personal Finance: An active approach to help you achieve financial literacy. McGraw-Hill.