A new investment app which aims to replicate streaming platforms like Spotify or Netflix has gained the backing of Premier League footballer Jorginho, who says too many sportspeople risk running out of money later in life.
The Arsenal midfielder acquired a 10% stake in Gather which launches this week and features funds from asset management giant Blackrock.
Jorginho told the PA news agency he wants to set an example to young football players who do not think about the future when they start making money.
He told PA: “You put your lifestyle at a certain standard and you’re used to that, and it’s nice.
“But if you don’t think about that at the beginning then you find that, after your career, you want the same lifestyle but don’t have the same income.”
He said footballers splashing out on things like cars, watches and holidays can end up running out of money when their shorter-lived career on the pitch comes to an end.
I come from the bottom and I can’t risk to lose it all, I don’t like losing— Jorginho
He referred to statistics suggesting that a high proportion of professional players end up going bankrupt later in life.
The 31-year-old sportsman, who was born in Brazil and is an Italian national, credits his upbringing and supportive family for encouraging him to save for the future.
“I come from the bottom and I can’t risk to lose it all, I don’t like losing”, he told PA.
“Sportsmen and sportswomen maybe don’t invest in the right way or they don’t invest at all, and they just enjoy the moment, so maybe they need some support around them.”
New app Gather says it wants to democratise investing by making it similar to using a music or video streaming platform.
It features “playlists” and “albums” where investors can select thematic funds from Blackrock and other fund managers, starting with a minimum deposit of just £30.
Founder Giovanni Bonaccorso said wealth management has historically been “exclusively for the already wealthy”, and he wants to eliminate jargon getting in the way of the everyday consumer choosing to invest.
The app also features a lower-risk Blackrock cash fund which is made up of short-term securities and aims to match interest rates set by the Bank of England, which hit 5% last month, and beat savings rates offered by major banks.
UK banks have come under fire from MPs and the financial regulator for failing to raise savings rates as much as mortgage rates.
The average easy access savings rate was about 2.5% earlier in the month, while a typical five-year fixed-rate residential mortgage recently surpassed the 6% mark, according to data from Moneyfacts.
It's all about balance. You deserve to enjoy the moment, but not just forget what is coming next— Jorginho
Jorginho’s involvement in Gather marks the next business venture for the player.
He said he already invests in property in England and Italy, and has backed the development of around 100 flats in Brazil.
But he insists he is not a risk taker and prefers to put his own money in a diverse mix of assets, including long-term savings.
“There is risk in anything you do, but my target is always the safest one,” he said.
“It’s all about balance. You deserve to enjoy the moment, but not just forget what is coming next.”
