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I Could Win Wimbledon... What?!

Zoe Team

Jul 3, 2018

4 min read

A financial advisor reviewing a plan with two clients at a table

Key Takeaways

It is easy to overestimate our abilities based on passive observation.
Distinguishing between hobbies and professional skills is important for realistic planning.
True expertise requires dedicated practice and professional commitment over time.

Frequently Asked Questions

Why do people often think they could go pro in sports?

People often mistake familiarity with a sport for the actual physical skills, discipline, and training required to compete at a professional level.

What does the author learn from this realization?

The author recognizes that observation is not the same as participation and that expertise is a result of consistent, hard work.

How does this relate to financial planning?

It highlights the value of hiring professionals for complex tasks rather than assuming we can perfectly manage them ourselves without proper training.

If you are like me, every time I turn on the TV and watch any sporting event (whether I played it or not) I say to myself “I totally could have gone pro!” (lol, right). Doesn’t matter which sport it is, I sit on that couch and I’m convinced that in a few short weeks I could be ready for the next event. I say this because I see athletes living their best lives - wearing the coolest gear, traveling all over the world, doing what they love.

Wimbledon Winnings

Being a “star” junior varsity singles tennis player, I got first-hand experience in how hard it is to succeed in a sport where everything depends on you. While our competition was nowhere near pro (obviously) it was a great example of how dedication, consistency, and perseverance can deliver incredible results. With Wimbledon in full swing, I had a look at the ever-growing winner’s pot, which currently pays the winners, both male and female, over $3,000,000 each. That’s a lot of green! And coincidentally made me seriously green with envy looking back on my unearned athletic success.

The Cost of Getting To The Top

As I picked up an old racket for the first time this spring, it got me thinking about what type of investment a top tennis player makes in themselves to be able to perform at the highest level. Being a member of team Zoe, and understanding the value of data and research, I decided to look a bit deeper.

Now, as I ventured into this research, I found a few costs that were slightly different to mine - while I took the school bus, used a school racket, and had no tennis lessons, a top tennis player is looking at expenses including a tennis coach, physiotherapy, fitness coach, nutritionist, and travel accommodations. Somewhat different! These expenses add up to hundreds of thousands of dollars: $490,000 per year to be precise (to see how we got to this number, check out our methodology at the end of this blog).

Now doing some not-so-simple math, we calculated that this $490,000 is approximately 16% of the Wimbledon winner’s pot i.e. a star like Roger Federer is investing 16% of his total Wimbledon winnings per year, to get the trophy. And let’s not forget that most pro tennis players will NEVER win that pot!

This got me thinking: if professional tennis stars invest 16% of their winnings in themselves to earn that Grand Slam check, what would happen if I invested 16% of my income… Could I be a Wimbledon winner?!

Cash out like a tennis star

Now while our chances of reaching that grand stage are slim to none, we have a better option. We can cash out like a tennis star by simply watching tennis on the sidelines and letting our money work for us. How? Compounding interest!

If you invested 16% of your $100,000 salary each year in the S&P 500, over the course of a 30-year period, you would walk away with approximately $3.6 million. You would essentially be holding the Wimbledon winners check!

Now, of course, this theory has its flaws - grand slam winners don’t train for 30 years in order to win one big paycheck - but we can use it as inspiration to instill a habit of investing in ourselves like the pros do.

First, I’d like to thank…

Imagine what you’d say to the crowd holding that $3.6 million check. I think mine would start with “I would like to thank Coach McFadden for loaning me a racket all those years ago…”.

16% is what the pros invest in themselves and look how well that pays off. When you do the math, you’re closer to your Wimbledon title than you thought!

Methodology 1:

Total expenses per year for a professional tennis player from the age of 21 to reach a grand slam:
£1,224,000
in 2015

(Costs are estimates, and do not take into account any prospective sponsorship costs or time-out due to injury.)

This translates to $1,852,768.8 in 2015

(based on May 2015 exchange rate of 1.5137)

$1,852,768.8 in 2015 = $1,945,407.24 in 2018

(based on the combined inflation rate of 5% from 2015 to 2018)

Assuming this $1,945,407.24 is the cost to reach all Grand Slams, we divide by 4 to get the cost for just one Grand Slam, Wimbledon = $486,351.81

I.e. total cost per year to get to Wimbledon is $486,351.81

Wimbledon prize money =
$3,033,225.00

(using exchange rate 22 May 2018)

Money invested to earn prize money = 486,351.81/3,033,225 = 16.03%

Methodology 2:

(0.16*100,000) = $16,000 invested per year

Average annual return of S&P 500: 10.6% (if you want to know how we got this, feel free to get in touch).

$16,000 invested each year at 10.6% p.a. for 30 years = $3.59 million 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

Wimbledon Winnings

The Cost of Getting To The Top

Cash out like a tennis star

First, I’d like to thank…

Imagine what you’d say to the crowd holding that $3.6 million check. I think mine would start with “I would like to thank Coach McFadden for loaning me a racket all those years ago…”.

16% is what the pros invest in themselves and look how well that pays off. When you do the math, you’re closer to your Wimbledon title than you thought!

Methodology 1:

Total expenses per year for a professional tennis player from the age of 21 to reach a grand slam:
£1,224,000
in 2015

(Costs are estimates, and do not take into account any prospective sponsorship costs or time-out due to injury.)

This translates to $1,852,768.8 in 2015

(based on May 2015 exchange rate of 1.5137)

$1,852,768.8 in 2015 = $1,945,407.24 in 2018

(based on the combined inflation rate of 5% from 2015 to 2018)

Assuming this $1,945,407.24 is the cost to reach all Grand Slams, we divide by 4 to get the cost for just one Grand Slam, Wimbledon = $486,351.81

I.e. total cost per year to get to Wimbledon is $486,351.81

Wimbledon prize money =
$3,033,225.00

(using exchange rate 22 May 2018)

Money invested to earn prize money = 486,351.81/3,033,225 = 16.03%

Methodology 2:

(0.16*100,000) = $16,000 invested per year

Average annual return of S&P 500: 10.6% (if you want to know how we got this, feel free to get in touch).

Disclosures: Zoe Financial, Inc. ("Zoe Financial") is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. Zoe Financial provides investment advisory services and access to independent registered investment advisers through its platform. The information provided by Zoe Financial is for educational and informational purposes only and should not be construed as personalized investment advice or as an offer to buy or sell any security. All investments involve risk, including possible loss of principal. Past performance is not indicative of future results. Clients should consult with their own financial, tax, or legal professionals before making any investment decisions. The material presented by Zoe Financial is for informational purposes only and is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy, or investment product. Material presented has been gathered from sources believed to be reliable, however Adviser cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Past performance is no guarantee of future results. Zoe Financial does not provide legal or tax advice, and nothing contained in these materials should be taken as legal or tax advice. SEC Registration does not constitute an endorsement of Zoe Financial by the SEC nor does it indicate that Zoe Financial has attained a particular level of skill or ability. The sole purpose of this material is to inform, and it in no way is intended to be an offer or solicitation to purchase or sell any security, other investment or service, or to attract any funds or deposits. Investments mentioned may not be appropriate for all clients. Before making any investment, each investor should carefully consider the risks associated with the investment, as discussed in the applicable offering memorandum, and make a determination based upon their own particular circumstances, that the investment is consistent with their investment objectives and risk tolerance. Lower expenses do not guarantee better investment performance. Certain information contained herein may constitute forward-looking statements. Due to various risks and uncertainties, actual events, results or the performance of a fund may differ materially from those reflected or contemplated in such forward-looking statements.

Disclosure: This page is not investment advice and should not be relied on for such advice or as a substitute for consultation with professional accounting, tax, legal or financial advisors. The observations of industry trends should not be read as recommendations for stocks or sectors.

Investment advisory services are provided by Zoe Financial, Inc. (Zoe Financial), an investment adviser registered with the U.S. Securities and Exchange Commission (SEC). Registration does not imply a certain level of skill or training. Learn more about Zoe Financial on the SEC’s Investment Adviser Public Disclosure website. Brokerage services are provided by Zoe Securities LLC and Apex Clearing Corporation, members of the Financial Industry Regulatory Authority Inc. (FINRA) and Securities Investor Protection Corporation (SIPC). Learn more about Zoe Securities and Apex on FINRA’s BrokerCheck website.

The information in the visuals above is for illustrative purposes only and does not represent an actual user's account, balance, or return. Zoe Financial does not provide tax or legal advice.

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