We’ve been hearing these stories for years. Professional athletes make millions of dollars, and then they end up broke and/or bankrupt. These are cautionary tales even for the average investor.
Here’s an interesting article that details bad investments by athletes. One of the recurring themes involves investing in businesses. Investing in the business of another person is usually not the way to invest your money. Many businesses fail, and if that happens you lose all of your investment.
Also, if you’ve made a lot of money, you should be more interested in preserving what you’ve earned. Don’t get greedy on risky get rich ideas – you’re already rich!
Few people think about what they can lose when they make these kinds of investments. Read the article and you’ll get an idea of what types of investments you should avoid.