ESPN’s award-winning documentary series “30 for 30” aired an episode in 2012 that was titled “Broke”. That story documented multiple specific examples of highly skilled and successful athletes who were broke within only a couple years of having retired from their athletic careers; despite having earned tens, and sometimes hundreds of millions of dollars. In the story, it is reported that “by the time they have been retired for two years, 78 percent of former NFL players have gone bankrupt or are under financial stress; within five years of retirement, an estimated 60 percent of former NBA players are broke”. These same statistics apply, surprisingly, to large (over $5 million) lottery winners.

People dream of winning the lottery, or striking it rich as a professional athlete, and living “the good life”. But often such large endowments can destroy those lives. Why? The majority of people are simply not trained or prepared to manage the complexities of large amounts of money. Friends, family, long-lost relatives, suddenly appear asking for help and money. And the simple fact is, most people are truly kindhearted, and want to help. So they begin giving away money, or “lending” money that will never be repaid.  The result is family strife and loss of friends, leading to isolation.

The other factor is the unscrupulous investment salespeople who sell Ponzi scheme investments, or 30 year illiquid partnership interests, or venture capital type investments with very little hope of ever panning out. But these salespeople prey upon the lack of sophistication of the “target”.  The salesperson walks away with a very hefty commission, and the “investor” is left with massive losses; and often no recourse.

Perhaps the biggest benefit of utilizing Peak Fiduciary is to set up a managed account (which can be a trust, or a DPOA-based fiduciary managed account).  Now any of these various family members, friends, investment salespeople, etc. have to go through Peak Fiduciary to sell their schemes or beg for money. We are highly experienced in evaluating such proposals and spotting the bad deals, and are more than happy to say “no” in order to preserve your money. And you don’t have to be the “bad guy”. We are. And we’re happy to do it.

In a longer-term perspective, our goal is to always work with you to protect, grow, and manage your assets in a manner that is aimed at achieving your lifestyle goals, and overall estate plans. As a fiduciary, we are required to put your interests first (not our own interests). Most people assume that investment advisors, salespeople, friends, family, banks, etc. are held to that standard. They are not.  We are. You can rest assured that Peak Fiduciary is always looking out for your best interests.