Success Story

The Background:

Jay established himself as an elite NHL player through his entry-level contract, and recently came to terms on a long-term extension. He knew his new contract could potentially provide him financial independence for life if the proper financial plan was built. Although Jay’s agency offered “financial planning” for an extra percentage of contract value, he had the wherewithal to interview a few other firms to hear differing philosophies on how to best accomplish his goal.

The Concerns:

• Jay’s agency promised him the ease of not having to worry about anything except being the best hockey player possible. This sounded nice, but he felt a little uneasy about not being more involved in understanding how his money was being handled. He also realized that an additional 1% of total contract value was a significantly higher fee than the other firms he was interviewing.
• He also met with a wealth management division from one of the large bank and brokerage firms. They touted the advantages of having his investments and banking in one place. Jay saw the ease from a banking perspective, but he was left somewhat confused about their investment philosophy, as well as being unsure the way fees were charged within investment accounts.
• Jay then met with a hockey-specific, fee-based firm. He appreciated how easy the fee structure was to understand, and how the firm was able to provide hockey specific financial planning, not just investments. He also liked how the group’s advisors were fiduciaries, meaning they were legally obligated to make every decision in his best interest.

The Approach:

Jay decided that paying an extra 1% of his entire contract to his agency was not in his best interest. He also realized that using a big brokerage for investments would likely involve hidden fees with limited hockey-specific planning. Jay ultimately decided to move forward with the fee-based hockey group that understood the opportunities and challenges of being a player.

The Results:

Jay now has a comprehensive financial plan that outlines his path moving forward. Jay has a newfound confidence knowing he has a group of advisors in his corner, and that he now has a game plan for life after hockey.