What Carlos Yulo should do with his P100-million rewards

Carlos Yulo did an amazing feat by winning two gold medals in the recently concluded Paris Olympics. Because of that, he will get incentives and rewards from the government and the private sector exceeding P100 million in cash and in kind.

Carlos Yulo made history by winning two gold medals in the recently concluded Paris Olympics. As a result, he will receive incentives and rewards from the government and the private sector totaling over P100 million in cash and kind.

While this is certainly good news, his next challenge will be to manage these rewards effectively to ensure his financial security for the rest of his life. After all, many people who become wealthy quickly also lose everything just as quickly due to poor money management.

Here's a hypothetical plan for how I would allocate my rewards if I were Carlos Yulo:

I would start by giving 10 percent of my cash winnings to my family. Regardless of the state of my relationship with them, I would still want to express my gratitude for their past contributions to my success.

Next, I would allocate 20 percent for donations to churches, charities, and causes that I care about, including those who helped me succeed and other promising athletes who could use a helping hand.

I am setting a fixed allocation for this because I will likely be approached by many people for help given the publicity surrounding my rewards. While I believe in helping others, I must also prioritize my own well-being. Overhelping can be a problem, as I could end up losing everything, and when that happens, there's no guarantee that someone will help me.

Besides, not everyone who asks for help deserves it, especially if they are capable of working but choose to be lazy or feel entitled to a good life without contributing anything. Helping these kinds of people only empowers them to stay lazy and entitled.

I would now focus on myself. The first thing I would do is set aside emergency funds and place them in a time deposit. The amount should be large enough to cover six months' worth of expenses, ensuring that I can maintain my lifestyle even in the event of a serious injury.

I would also buy medical insurance. Getting sick can be very expensive, and I don't want to worry about where to get the money to cover my hospital bills.

For the rest of my funds, I would make some investments after budgeting only a few million to reward myself for my accomplishments. Although I won two gold medals, I don't know if I can still win more gold medals in the future.

Professional athletes also don't earn a lot, and I know that my career won't last for a very long time. Because of that, I need to make sure that whatever I earn while I am still strong will be enough to cover my expenses for the rest of my life.

I would take advantage of the high interest rates prevailing and allocate half of my funds to buy long-term bonds yielding 5 percent to 6 percent. The interest income on these bonds will act as passive income to cover some of my day-to-day expenses.

I'd allocate the other half of my funds to buy stocks. This is because I need to have investments that will beat inflation. While a hundred million may seem a lot today, it won't be worth as much in 20 years.

I also know that stocks are very cheap right now, and many of them provide cash dividends, which is an added bonus since it would give me more passive income. Because I won't need these funds in the short term, I can take advantage of the prevailing opportunity to buy stocks at a very cheap price and be rewarded with significant capital appreciation in the long-term.

As for real estate, I'd just rent out the three properties given to me. The rent would add to my passive income.

While it is tempting to live in the 3-bedroom condo unit in McKinley Hill, I will also rent it out. This is because I don’t need that much space since I'm not married and I don't have any children. Besides, the monthly dues and property taxes of that condo are quite significant, and my expenses will balloon if I live there.

McKinley Hill is also located far from the gym where I train. Given how bad traffic is, it's not practical for me to stay there.

According to my research, I can get around P100,000 per month from renting out my McKinley Hill condo. This is more than enough to cover the rent for a good-sized apartment located closer to the gym where I train. The money left over after paying for my rent and the cost to maintain my McKinley Hill condo will further boost my passive income, which is even better.

Finally, I will do my best to maintain a simple lifestyle. Although there will be upgrades such as moving to a nicer place, driving instead of commuting, and eating out more often, I plan to consciously prevent myself from living lavishly. Not having to worry about money will help me mentally stay focused on my training and allow me to stay competitive in my career as a gymnast.