The most surprising reason athletes and lottery winners end up broke has less to do with investing than with spending. You have to control your spending and set aside a lot of money to invest.
Then there’s what we call the brother-in-law factor. Win the lottery or sign a big NBA contract, and friends and family show up with deals. Athletes, lottery winners and even lawyers with big settlements who aren’t experienced investors often skip traditional investing principles: conduct due diligence, look at lots of deals and invest in few. Those principles drive Ticker Tape Investments.
Key points
- Overspending, not bad investing, is often the first problem.
- Sudden wealth attracts “can’t miss” deals from friends and family.
- Do the due diligence, look at many deals and invest in few.
Accredited investors: learn about current opportunities at tickertapeinvestments.com.
