The horror stories are legendary; professional athletes who made millions and then lost it all. Sure a lot of it is due to lavish spending, but bad investments, especially in private businesses, are also a big culprit.

Former Major League Baseball player Torii Hunter is using his retirement to help set up others for theirs.

"A lot of athletes are out there, they're making bad investments, they don't know that they shouldn't do more than 5 percent in private equity," Hunter told Power Lunch. "And we're just trying to teach these guys and hopefully eliminate the problem we're having among our athletes and celebrities who go broke."

Along with his partner, Ed Butowsky of Chapwood Investments, Hunter started Clubhouse Investment Club, which allows athletes, entertainers and celebrities to put their money in venture capital investments.

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Here's how it works: the Club receives pitches from entrepreneurs about investment opportunities. The Club vets these pitches, and when it finds one it feels is a suitable investment, the pitch is sent to members.

Members can opt in to as many or as few as they would like on a case-by-case basis. It's not a fund and it doesn't take money beforehand.

Members only give money for a specific investment of their choosing. When the members decide to invest in an idea a special purpose vehicle is created just for that business investment.

And the key benefit for the businesses: the club focuses on consumer products, so its members, the investors, can use social media to promote the products to their fans.

Other members of the club's executive team include New York Met Curtis Granderson, Elton Brand of the Philadelphia 76ers, model Claudia Jordan, actor/director Peter Berg and celebrity chef Scott Conant.