Athletes and entertainers face unique wealth management opportunities, considerations and challenges. The athletes and entertainers we interviewed shared their personal stories and perspectives to highlight the need for more financial education in the sports and entertainment world. We thank them for being strong advocates of financial literacy.
Sage’s advice
Sage’s advice
“You don’t need a background in finance or accounting to learn about investing. I was a marketing major. I retired at age 35 without worrying about finding another job or how I would take care of my family.”
A childhood with room to roam
Sage grew up on 10 acres in the Iowa countryside with parents who raised chickens and grew their own organic fruits and vegetables. His dad, Robert, sold wood-burning stoves, and his mom, Jamie, was a midwife. They had moved from Chicago to raise their five kids in an idyllic place where they didn’t have to lock their doors at night. “I was taught that material things were not the goal. Having things was not the key to happiness.” It’s a perspective that has kept Sage grounded throughout his NFL career and beyond.
Winning the NFL lottery
A five-sport letterman at Maquoketa High School, Sage won a football scholarship to Iowa State University, where he was a star quarterback. The Washington Football Team chose him in the fourth round of the 2001 NFL Draft. From the beginning, Sage was keenly aware that careers in professional football are short-lived. “Every year I made it in the NFL was like winning the lottery, and there was no guarantee I would win again.”
Sage got married in college and was a young father. He saved as much as possible so he could take care of his family, regardless of what happened with his football career. At the time, he was making around $600,000 per year with salary and bonus playing for the Miami Dolphins. “Every dollar I saved was a dollar I didn’t have to earn later.”
Given the physical toll of playing, Sage knew that even in the best case scenario he would retire from football in his thirties. Only a small stratosphere of superstar athletes is able to monetize their celebrity status after retirement, so that was not something Sage could count on. He wanted the option of never working again after football. “I didn’t want to be the 35-year-old intern in the workforce. My classmates would be a decade ahead of me in their careers. I’d be the rookie at any company.”
Every year I made it in the NFL was like winning the lottery, and there was no guarantee I would win again.
Retirement-level money
In 2006, the Houston Texans offered Sage a four-year, $6 million contract, $2 million of which came as a signing bonus. He started asking himself how much money he needed to retire after football. “What’s my yearly burn? What do I need to be happy? That’s the key.” The standard advice Sage heard was for players to save 30% of their income. He saved 80% and still enjoyed a nice lifestyle. The values he was raised with helped him avoid the temptations of flashy spending.
Sage cautions that professional athletes come across money at a young age, when they have little experience with finances. “Just because you have money doesn’t mean you know a lot about money.” Although he was a marketing major who never formally studied finances or accounting, he made it a point to educate himself about investing. “I knew there was an overall number that I needed to reach before I could comfortably retire. I estimated I could earn around a 5% average annual return by investing long term in stocks and bonds. I let my money work for me.”
I didn’t want to be the 35-year-old intern in the workforce. I’d be the rookie at any company.
Adventures in investing
Sage’s earnings steadily increased and he continued to learn about investing. The Minnesota Vikings acquired Sage in a two-year, $9 million trade in 2009. He was the backup for Brett Favre before joining the New York Giants in 2010 behind starter Eli Manning.
Being a professional athlete brought Sage in contact with successful investors. He saw this as a great learning opportunity. “I talked to a billionaire who owned a shipping company when we attended the same charity event in Miami. I realized that lots of money is made in businesses that aren’t flashy or compelling, from waste management to cemeteries.” A friend from the NFL put Sage in touch with a property developer who fostered his interest in real estate investments.
Just because you have money doesn’t mean you know a lot about money.
Sage is a firm believer in Warren Buffett’s mantra: “Don’t invest in something you don’t understand.” He invested in an Internet business that provided a photo and video uploading service for high school athletes interested in playing college sports. The business sounded promising, but he readily admits that he didn’t understand all the intricacies. It was a bust. “I lost some money on that.”
Patience and investing with his risk tolerance and time horizon in mind are keys to Sage’s financial success. “Get a completion. You don’t always need to make a touchdown. A bad quarter in the stock market doesn’t concern me. I’m in it for the long run.”
It can get lonely
By the end of his career, Sage divorced, with shared custody of his children. “I was raising the kids half the time on my own and looking for a new house to live in. That was the hardest thing of all. It was a huge drop from being a New York Giants quarterback.” He officially retired from the NFL in 2013 after his second stint with the Minnesota Vikings.
The freedom from the daily regimen of football caught him off guard. “In football, your entire life is designed for you. It’s like the military. Everything is planned down to the second. When you retire, you have zero structure. No one tells you when to wake up or that you have to get into great shape.”
An extrovert by nature, Sage missed the energy of being with his teammates. “There are 200 people around you, from other players to coaches, trainers and staff. That all disappears and you’re at home with your kids. I’d text my friends and ask what they’re doing. They have their own careers and are busy.”
A Ph.D. in football
Throughout his twelve-year NFL career, Sage played for eight head coaches and five teams. He now leverages his football knowledge as a radio commentator and podcaster. “I have a Ph.D. in football. My expertise is in the science of the game. I like the camaraderie of the Combine and Super Bowl. It’s my old world.” Sage also teaches elite high school and college quarterbacks the intricacies of offense and defense to help them prepare for the NFL.
Giving back
Sage wants other players to know that they can retire financially prepared if they plan ahead. “There are lots of players like me. I didn’t make $100 million. I’m not Joe Montana or Peyton Manning, and I can’t make money off of my name.” Sage made approximately $15 million playing in the NFL. In contrast, Peyton Manning earned close to $250 million and earns over $150 million in annual endorsements.
His foresight allows him to give back to causes close to his heart and care for his family. One of Sage’s best friends from his hometown has a foundation that supports literacy programs in Haiti. He hosted a fundraiser at his home for the foundation and has traveled to Haiti for his charitable work. Sage’s three children will receive set amounts when they hit milestones, such as graduating from college. He’s also grateful to be in a position to help his older sister, who was disabled in a car accident when he was in high school.
Sage likes to share the advice of his great-grandmother: “Do your giving while you’re living so you know where it’s going.”
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