CHRIS EVERT:
Welcome to Episode 7 of What Moves You, an audio miniseries for Morgan Stanley in support of the WTA. Hi, I'm Chris Evert.
In this set of episodes with Morgan Stanley private wealth advisor, Scott Lamson, we’re looking at how you set yourself up as the CEO of your own business, and build a professional organization to support you through your whole career.
SCOTT LAMSON:
Hi I'm Scott Lamson and I'm a Morgan Stanley private wealth advisor and a Global Sports and Entertainment Director.
CHRIS EVERT:
For many players, a parent or parental figure is one of the core members of the team. I was lucky enough to have tremendous support from my family throughout my tennis career, especially from my dad. But family can also be some of the most complicated relationships we have. Especially when it comes to money.
SCOTT LAMSON:
Everyone has a different comfort level with money. When you're at the peak of your career, you add this newfound wealth, it's supposed to be euphoric. But that sudden wealth can actually cause a great amount of stress and discomfort within a family.
And so we advise many athletes and their families to ask questions to make sure they understand what money means to them, how to protect it, how to grow it, how to invest it, and how to use it for positive impact.
For younger players, we'll oftentimes see that a parent or a guardian may take a more active role, often operating like a business manager. You know they're helping the athlete manage their bank accounts, file their taxes, serving as the point person between their different service providers.
As your career advances though, you might hire a business manager to serve in that capacity. And what we'll see is a parent will take a slight step back, moving into almost what we call a chairperson role, where a business manager is coordinating between the financial advisor, an accountant, a lawyer potentially, and an agent, and reporting to the parents and the athletes on a monthly basis. The parent isn't involved day to day, but they are there as oversight, to help the player.
We often see younger athletes give power of attorney to a family member, particularly a parent. And sometimes even a business manager. But that might change over time. Power of attorney is just one of several tools you can use to delegate tasks to your team. And this can differ depending on which country you live in. But it's very important to understand that when you give someone power of attorney, you may be giving them access to your bank accounts. They may be able to move your money, and make investment decisions on your behalf.
And so signing a power of attorney letter should be thought through very carefully. The people to whom you're giving that power must be incredibly trustworthy. And those are relationships and needs that will change over time, so as you evolve as a player and as your team evolves, you will need to reassess that power of attorney at each new stage of your life. Whether you’re getting married, having children, or you’re considering retirement — those are big moments. You need to reassess with your team and your family. And make sure you're doing all the right things to properly care for everybody and to protect yourself and your assets.
CHRIS EVERT:
Thanks for listening to What Moves You. An audio series from Morgan Stanley in support of the Women’s Tennis Association. I’m Chris Evert.
We've seen how family can be one of your strongest pillars of support both on and off the court. Next, we'll talk about why you might want to explore the world OUTSIDE of your community, or even outside the tennis world.
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