5 Things I Wish Jockeys Knew About Money
As a financial advisor who works with horseracing jockeys, I’ve seen the unique challenges you face both on and off the track. Your career demands incredible skill, discipline, and sacrifice, but it also comes with financial and physical risks. Here are five essential lessons to help you take control of your financial future:
1. It’s Not a Forever Career
Jockeying is a short-lived profession for most. The physical demands, weight requirements, and injuries mean that few can maintain a long career in the saddle. This makes financial planning critical. While you may be earning well today, you need to treat those earnings as a limited resource. Build savings, invest wisely, and prepare for the day when you’ll need to transition to a life outside of racing.
2. You’re in a Race Against Time
Your career doesn’t just end early—it’s grueling while it lasts. Long hours, constant travel, and the ever-present risk of injury mean you need to start putting money away immediately. Compounding works in your favor the sooner you begin. Think of every dollar saved as a seed that can grow into a larger financial safety net for your future. Don’t wait until your best earning years are behind you to start thinking about retirement.
3. Injuries Are a Question of When, Not If
As a jockey, injuries aren’t hypothetical—they’re inevitable. That’s why you need a plan in place before an accident sidelines you.
Savings: An emergency fund can help cover expenses when you’re unable to ride.
Disability Insurance: This is a must-have. It provides income when you’re unable to work.
Support System: Identify people who can help care for you during recovery and ensure your financial obligations are met.
Planning for these scenarios isn’t pessimistic—it’s realistic and smart.
4. Investing: Your Dollar Army
Think of investing as sending out an army of dollars to work for you. Each dollar has the potential to go out, earn more dollars, and return stronger. This isn’t about chasing quick gains or risky ventures; it’s about creating a disciplined, long-term plan. A diversified portfolio can help you grow wealth steadily over time, giving you the financial freedom to step away from racing when the time comes.
5. Minimizing Taxes Isn’t Always the Best Move
Many jockeys focus on minimizing taxes today, but this can lead to missed opportunities for long-term growth. For instance, maximizing contributions to tax-advantaged retirement accounts might reduce your tax bill slightly now but can result in additional taxes in retirement. Additionally, if you look to make a career transition or major purchases well before typical retirement ages, you may face stiff taxes and penalties to access your money. Lastly, tax-deductible business purchases can reduce taxes but they only make sense if the purchase is necessary for your business. Work with a financial advisor to strike the right balance between short-term tax strategies and long-term wealth-building goals.
Bonus Tip: Plan for Your Money Before You Earn It
Without a clear plan for your earnings, it’s easy to fall into financial traps. The thrill of a big payday might tempt you to splurge on unnecessary things like flashy cars, luxury items, or extravagant trips. You might also forget to set aside money for taxes, leading to a nasty surprise when the bill comes due. And without a strategy, windfalls can vanish before you’ve invested them to secure your future. Budgeting isn’t just about controlling spending—it’s about giving every dollar a purpose. By planning ahead, you can avoid common pitfalls and make sure your earnings set the foundation for lasting financial security.
Take the First Step Toward Financial Success
You don’t have to figure all of this out on your own. Managing your finances as a jockey is challenging, but with the right guidance, you can create a plan that works for you now and in the future. I help jockeys navigate these financial complexities—whether it’s saving for the long term, reducing taxes appropriately, planning for injuries, or investing to grow your wealth. Let’s work together to ensure your hard-earned money works as hard as you do.
Contact me today to start building your personalized financial game plan. Your career may have a finish line, but your financial success doesn’t have to.
