11 minute read
Kaymore Sports Risk Management
Register: In your niche market of helping young athletes, how is their career different from a traditional working career.
Kaymore: Due to athletes getting drafted at very young ages, usually 18 to 23 or so, their careers are not like other traditional working people who will work their jobs for 25 to 30 years. With the average pro sports career being 3 to 5 years, I advise athletes that they have to consider retiring at the very moment they get drafted from a savings perspective. Due to the mechanism of athletes earning a very substantial amount of money in a very brief career time frame, a false reality can be created.
Register: What is the mindset of these young athletes?
Kaymore: I have a good understanding of what is in store for these athletes. They get a $12 million signing bonus and although I understand what that entails, a 20-year-old isn’t worried about having a will, trust, or an estate plan. They are not worried about insurances or investments. They are worried about playing video games, having fun, and hanging out with their buddies.
Register: How do you know how to engage this type of client?
Kaymore: I find the situation a really interesting dynamic, and having been through the process before, I feel as though I know what Mom and Dad are going through also. So my process 100% of the time consists of the parents as well. My personal standard is that with every athlete that I endeavor to work with, I make sure that Mom and Dad are involved.
Ronnie Kaymore, RFC®
Kaymore Sports Risk Management
The Register Member Focus Section for May spotlights Ronnie Kaymore RFC®, a former professional football player who attended Washington State University. Upon retiring from the Arena Football League in 2007, Ronnie started a career in banking which then led to a passion to learn more about comprehensive financial planning. Ronnie joined New York Life for about a year and half and then transitioned to an independent Insurance Advisor in 2010 with a focused niche on athletes. He currently owns Kaymore Sports Risk Management based in New Jersey were he works with over 200 professional athletic clients from an insurance perspective —covering many areas including retirement. Let’s learn how he serves this niche market.
Register: How do you approach salaries and endorsements with these players?
Kaymore: When it comes to the young athletes, a lot of them are told that they are not only an athlete, but that they are their own brand, their own identity. If you look at guys like LeBron James, they make as much and more money off the court as they do on the court. So they are earning a W2 compensation. But when it comes to the endorsement income, that is actually a very unique way to sort of grow and sustain a family business. I have seen players actually create a corporation and the money that flows into that company can provide meaningful employment and help out the family. I focus on the insurance side. When dealing with a kid that is significantly over the federal estate tax threshold, I address life insurance and irrevocable life insurance trusts. If the player has an organization established with family members, it concerns defined benefit plans, employee benefits, etc.
Register: How do you find your prospects?
Kaymore: Finding athletic prospects is very easy. Every year there is an NFL draft, an NBA draft, and an MLB draft. If one was to Google the NFL draft of 2023, there would be a list of kids coming up who would be prospective clients in my world. On the college level, I identify the top ranking collegiate athletes. Looking at mock drafts of the NFL, NBA, and MLB, it’s easy to identify the top performers.
Another source of prospects is word of mouth. I may have worked with an athlete during one year, but come the following year sometimes in the same family, another kid is needing his services — thus the powerful word of mouth.
“I have been blessed with the favor of the Lord in Business, Family, and Community. And you know, it is something that I am grateful for...”
Register: Tell us about the challenges to managing these talented, recruited prospects?
Kaymore: Once these athletes are on board, then it becomes a challenge to get these kids to listen to me. And that is why I am adamant about getting the parents involved. It is hard to imagine a superstar athlete that signed a $100 million contract to have to sit down to do a life insurance exam. It is impossible to get it done I feel, without the help of Mom and Dad.
In addition to parents, a board of consultants such as a CPA, Investment Advisor and Attorney are consulted. If everyone is echoing the same sentiments, I have learned that the kids will listen.
Register: What is your actual financial planning strategy?
Kaymore: I usually start with the end in mind. In the world of financial planning when you are talking to a business owner, there is something called succession planning — a sort of exit strategy. Or “What do I do when this is all over?” From the very moment when my guys are entering into the professional levels, I am already bringing up the idea of a “life after football plan” because the average career is only about 3.5 years long. If they sustain an injury that cuts their career short, I hope I have done adequate planning where the athlete can collect an insurance claim based on an injury. But even furthermore, I want to talk about that succession plan. Currently, I have a kid who is a rookie in the NFL with the Minnesota Vikings. He is doing a media internship right now in Los Angeles because that’s what he wants to do when his football career is over. Register: Why are you so passionate about your career?
Kaymore: I love what I do for many reasons. I remember when I was in the same situation as these young men — preparing for the draft, looking to fulfill lifelong dreams. As an athlete, they are taught just to focus on playing a very demanding and competitive sport. Not only that, but keeping in great shape.
I admit that I can recognize myself in a many of these young men (albeit they are better than I was). I am passionate about knowing where they are now, then knowing where they can be later on.
I reference a proverb in the Bible, Proverbs 13 and 22. “A good man leaves an inheritance to his children’s children.” Looking at what some of these young men have been blessed with, if they can find people who can help them be good stewards over that blessing, then there are generations that can truly benefit. I understand the family needs good people around them who will lead, guide, and educate.
My wife maintains that it does not even seem like work to me. I see kids in college, then in the NFL or NBA, then with grown children. I love seeing that dynamic play out which truly puts a smile in my heart.
Register: How did you become involved with the IARFC?
Kaymore: I like to read all types of financial industry literature. After finishing the book Man on a Mission written by Marv Feldman who is really well known in the insurance world, I became an RFC®. Being interested in Feldman’s philosophy, I checked out his website and found the designation of RFC after his name. I then went to the IARFC website and found out what the Association stood for in terms of ethics, professionalism, and dedication to the industry. I then felt it was something that I needed to be part of and am truly grateful that I am now a connected member of the IARFC.
Register: What is next regarding your career goals?
Kaymore: I thinks the RFC designation challenges me from a continuing education perspective. I am already looking at the MRFC credential and have ordered the Study Guide for the MRFC exam and am brushing up on the content.
Included in my career path is membership in the MDRT and Top of the Table. I have been asked to give a presentation at MDRT, but unfortunately the timing interferes with the NFL draft. They have something called the Whole Man Concept where they not only want you to be whole in business, but in family and community.
Register: Any thoughts of expanding your consulting business niche?
Kaymore: I recently brought on another consultant, Michelle Stroble, RFC®. She is focusing on women’s sports so we plan on expanding out to WNBA players and also women executives in sports, possibly coaches. I do work with some entertainers as well but do not consider it my target market — frequently sports and entertainment intertwine.
Register: And your physical locations?
Kaymore: Currently I have an office in downtown Newark, NJ, and an office closer to home in Maplewood, NJ. For my general office, I have a location in New York City as well. I am literally spread out all over the country from New York to California and everywhere in between. Technology makes things pretty simple and with my clients being younger, they are technologically savvy — it make life easier.
Register: On a personal note, what brings you life enjoyment and how do you feel you are blessed?
Kaymore: I have a wonderful family and an inspiring church family. Every day I read stories of heartbreak and I feel I have been truly blessed. I enjoy doing the simple things in life — playing video games with clients, taking my wife out on date night, going out to eat with friends, and hanging out playing basketball with some of the young people I mentor. Kaymore sons... Joshua and Caleb
Register: What would you like to pass on regarding a life’s legacy?
Ronnie: I can sum it up in two words — to serve... really truly serve and consider the needs of others. Financial service is a form of setting an example. To the athletes I serve, I want them to be ambitious in goal setting but to consider others before themselves. For me, personally, I would like to leave behind that legacy of servitude.
Register: Any last words upon ending this interview?
Kaymore: I would like to encourage those who are in the financial services profession. There are a lot of people who need our help. I see it every day. It is very humbling when you meet people who have an ultra high net worth and they don’t even know what a 401(k) is. Just because somebody is earning a lot of money, doesn’t necessarily mean they know how money works and how to effectively appropriate a financial plan. I would say to those of us who are in the industry, let’s continue to educate ourselves and become better consultants. Let’s impact the next generation coming behind us.
CASE STUDY
Recently one of my clients signed a 5 year contract, $95 million or so with $50 million guaranteed. With the client being in their early twenties, yes these numbers are substantial but so is life expectancy which could be some 50 years down the road.
One immediate concern here was obviously tax planning and saving strategies but my role was to speak on estate tax exposure. Even though the numbers being: $11.7 million for single people, $23.4 for married, this young man had some planning to do.
Certainly life insurance presents a valuable solution in this particular scenario as well as perhaps trusts to remove assets out of a taxable estate.
Working with athletes can present very unique and complex retirement planning scenarios due to constant moving parts of their planning process.
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