3 money tips for U.S. Olympians & future athletes

I don’t know about you, but I am excited for the Olympics to begin! My favorite sport is gymnastics, although I can easily get drawn into any competition.?

Yet I was astounded to learn that 26.5% of high-performance American athletes earn less than $15,000 a year, according to a recent report “Passing the Torch” by the Commission on the State of the U.S. Olympics & Paralympics, and another 10% earn between $15,000-$25,000, writes Chris Taylor for Reuters.

“Only 50% of all responding high-performance athletes reported any compensation related to their sport, and of those only 11.5% received sponsorships,” says Han Xiao, the commission’s co-chair and a former member of the national table tennis team. “Most athletes live off of some combination of stipends, prize money, support from family or partners and salaries from other types of work.”

Meanwhile the cost of competition at a world-class level – travel, lodging, equipment, fees, and so on – is also extremely high, averaging $12,000 a year.

Some American Olympians sleep in a car at night or without sufficient food or adequate health insurance, the report found.

“This Olympic cycle has been worse than ever,” says Brant Feldman, an agent with American Group Management who represents a number of Olympic athletes like water polo’s Maggie Steffens and swimmer Paige Madden. That is because there are fewer endorsement opportunities.

As a result, the cost of surviving often ends up going on plastic. One of Feldman’s former clients, for instance, could not pay a commission right away because he had run up $41,000 in credit-card debt – covering not just himself, but his fellow team members as well.

Here are three expert tips for American Olympians (as well as future Olympic-hopefuls) to stay afloat financially.

For the latest news from Paris, be sure to bookmark Olympics coverage from Reuters.

When a cancer diagnosis changes the financial roadmap

Research shows that the biggest difference between people with high and low levels of financial well-being is their savings and ability to absorb an unexpected expense.

Yet sometimes life throws you an unexpected wrench, as it has for Jonathan Clements, a former personal finance columnist for The Wall Street Journal and esteemed author. Clements, however, is not disappointed that a fatal cancer diagnosis will keep him from spending the money he saved for decades.

“I haven’t worried about money in more than 20 years,” Clements recently told Ron Lieber of the New York Times. “The No. 1 thing money can do for us is to give us a sense of financial security, and the way it does that is not to spend it and to hang onto it.”

Among personal finance writers, Clements is a legend. His no-nonsense, honest and insightful pearls of wisdom have guided me throughout my career. I’ve also known and admired him for decades. In fact, before I was hired by Reuters, I almost joined Clements for a role at Citibank.

In June, Clements shared on his HumbleDollar website the news that his lung cancer had metastasized to his brain and a few other spots.

I am in awe of his perspective and profound candor: ?

“...Mostly what I feel is profound gratitude for the life I’ve had,” he writes. “I’ve had amazing opportunities and wonderful experiences, and that allows me to face the time ahead with surprising equanimity.”

Please take a moment to read his post, which reminds us of life’s real priorities.

I am holding you and your family close in my heart, Jonathan Clements.

All that glitters ??

What asset class do millennials and Gen Z investors both want to own?

Here is an answer you may not have guessed: Gold.

Among wealthy investors under the age of 43, 45% own gold as a physical asset and another 45% are interested in holding it, according to a recent study by Bank of America Private Bank.

Those are far higher percentages than other age groups.

Usually this demographic is not interested in assets like gold, cash or Treasuries, because they are considered to be "boring," says Liz Young Thomas, head of investment strategy for digital financial services firm SoFi.

Part of gold’s renewed buzz is its healthy price, which is above $2,400 per ounce.

Gold is also increasingly on the shelves in popular retail environments, which boosts visibility. Big-box chain Costco started selling 1-oz gold bars last fall and has been doing a brisk trade of up to $200 million monthly, according to Wells Fargo estimates.

I’ve never had the gold bug (aside from jewelry), but I am a big believer in diversification. Here are some important things to consider if you want to invest in gold – at any age.

Do you hold gold in your portfolio? Share your thoughts on investing in gold at [email protected] and take our poll below.

Why staggered retirement can make sense for couples

If you have a significant other, do you plan to retire at the same time??

Frankly, I cannot envision retirement yet. I know many couples where one person is working and the other is retired, though. My observation is that having a reliable dog walker is a big benefit, but I’ve seen problems arise when the retiree wants to travel and the other needs to be in the office.

Surprisingly, only 11% of American couples actually retire at the same time, according to a survey by financial services firm Ameriprise.

In fact, 62% of couples end up retiring more than a year apart, the firm’s Couples, Money & Retirement survey found.

There are some good reasons to stagger retirement, including healthcare coverage and additional income.

Here are four things to consider.

Reuters Poll ??

Thank you to everyone who commented on the item in my last newsletter about tip inflation in America!

Wow, tip creep really strikes a chord with readers. In fact, 79% of you say tipping culture is out of control in our LinkedIn poll.

I also received more than a dozen emails on the topic. As always, I especially appreciate your thoughtful comments!

Now for this week’s poll: Do you hold gold in your portfolio? Take our poll here.

And please let me know why or why not in the comments.?

A$K Lauren ????

Do you need to appoint an executor for your estate? Are you shopping for a new credit card? Send questions to [email protected], and I'll tap my extensive source network and braintrust for expert advice.

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New podcast alert! ??

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