If you asked me during my playing days what my OBP is or how many RBIs I had, I would have been able to tell you, no problem. To people in baseball, these terms are very common and ones we hear every day. We know that OBP stands for On Base Percentage and RBI means Runs Batted In; no one needs to explain.

However, try and talk finance, and most professional athletes are lost. They are not in familiar territory and well outside their comfort zone. Many don’t know what stocks, bonds, mutual funds, and annuities are and they are afraid to ask. Don’t get me wrong, finance certainly wasn’t the number one topic of conversation in the clubhouse, but it did come up from time to time. When anyone even muttered any of these terms to me, I would just smile and nod. I would keep quiet or I’d say they were part of my portfolio, because if you had investments, you had stocks, bonds and mutual funds. Didn’t everyone?

I knew having them was a way to invest money, but to tell you the truth-- they all sounded the same to me. They were investment terms, but I honestly didn’t know the difference between any of them. Sure, I had heard of them before, who hasn’t? But there was no way I was going to stop the conversation to ask what they meant. After all, how could I not know what a mutual fund is? I thought everyone was supposed to know, and that by not knowing, I would give away my ignorance.

So, I did what I think a lot of players do: I BS-ed my way through these conversations Besides, I thought I didn’t really need to worry about it anyway because I was paying someone else to handle my money. They knew and I would let them earn their keep – justify the big bucks I was paying them. Was there really a need to fully understand these terms when others were taking care of it for me? I certainly didn’t think so. As players, we take certain things for granted. We take for granted that we will always have money and that we will always have someone there to hold our hand financially. Things can really change after you retire, and the time to start preparing for that eventuality is now.

At the Players Club, we have your back. You have likely heard me talk about annuities before – it’s part of the core message of TPC. They’re really important and something everyone should own. Players need to make sure the paychecks never run out, especially after their playing days are done. Buying an annuity – or recurring cash flow for the rest of your life – allows players to retire with dignity and peace of mind.

But annuities are not the only financial products you will encounter. What are mutual funds, Exchange Traded Funds (ETFs) and Bonds? You probably have some or all of these. They’re pretty common investments.

I came to learn the hard way that not understanding these things fully and trusting my broker put me at a disadvantage. You see, we are trained to believe that stock brokers automatically know what they are doing. The $2 million I gave to this financial expert to invest for me dwindled to $400,000. It was a rude awakening.

At The Players Club it’s all about players helping players. So, here is a very basic way I can help you if you have ever found yourself just nodding along when discussing your finances. I will explain stocks, bonds, mutual funds and ETFs as best I can.

Let’ start with stocks. Stocks are the most common investment you can buy and trade on the market. Essentially, purchasing a stock allows you to own a small portion of a company. Each share represents one small stake in the company. Owners of a company generally initially sell shares of their company in order to raise money and grow the business. They raise capital without borrowing money. However, stockholders, as owners in a company get a small say in certain company policy with each share owned, they have ownership rights. Own enough stock and your voice in company decisions increases.

Next is bonds, which are basically loans taken out by large companies and organizations. When you buy a bond, you are essentially loaning a small amount of the money needed for a gigantic loan. Since these organizations, such as cities and the U.S. government, are so big, they need to borrow from several banks or people. The benefit? You get the initial payment you made back, plus interest. Bonds offer companies or entities the ability to raise capital without giving up ownership rights. Bond owners do not own a share of the company or entity. A company’s ability to pay back bonds they have issued is reflected in its bond rating. Companies with high AAA ratings can issue bonds at lower interest rates than companies with lower ratings.

Mutual funds are a bit more in-depth, but are still pretty easy to understand. A mutual fund is a basket of stocks, bonds or other investments. So, when you purchase a mutual fund, you are buying one product that has shares of many stocks or bonds in it. Just say you want to invest in oil-refining stocks, but don’t know which company to buy. Or, you think that area of the market will do well, but you do not want to put all your eggs in one basket by purchasing just one or two companies. You can buy a mutual fund that invests in many companies in that sector of the market. You get diversification and you get someone -- the fund manager -- who has the education and experience needed to try and pick the best stocks for you. The fund allows many investors to pool their money together to try and achieve a common investment objective. If you invest in a fund, you are buying a share of the fund itself, not purchasing the stocks and bonds in the fund directly. Also, mutual funds are generally considered buy-and-hold investments, which means many people who buy shares in a mutual fund intend on holding onto those shares for long periods of time, often several years.

Lastly, ETFs are very similar to mutual funds in several ways. They are a basket of stocks or bonds and often have similar objectives to mutual funds. They provide diversification and exposure to certain parts of the market. However, unlike mutual funds, ETFs trade in a way that’s similar to stocks. If you buy a mutual fund, the price generally stays the same for the whole day. If you buy an ETF, the price changes throughout the day, so ETFs are like buying mutual funds in many ways, but they are appropriate for those who want to trade more actively.

Remember, you don’t need to dive in head first and pick your own stocks or funds or annuities. We can put you in touch with the right people if you like. But, understanding how your investments are working -- at a very basic level -- can help you avoid making catastrophic mistakes with your money like I did