{"id":32557,"date":"2023-07-07T06:56:07","date_gmt":"2023-07-07T10:56:07","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/let-the-money-transform-your-life-how-student-athletes-can-use-nil-income-to-invest-in-their-future\/"},"modified":"2023-07-07T06:56:09","modified_gmt":"2023-07-07T10:56:09","slug":"let-the-money-transform-your-life-how-student-athletes-can-use-nil-income-to-invest-in-their-future","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=32557","title":{"rendered":"\u2018Let the money transform your life\u2019: How student athletes can use NIL income to invest in their future"},"content":{"rendered":"

This <\/em>article<\/em> is reprinted by permission from <\/em>NerdWallet<\/em>.\u00a0<\/em>The investing information provided on this page is for educational purposes only. NerdWallet does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities\u00a0or other investments.<\/em><\/p>\n

When University of Notre Dame sophomore Calyn \u201cKK\u201d Bransford takes the court this upcoming basketball season, she\u2019ll do so with a touch of glam thanks to her false lashes. She wants to look good while hooping, but wearing the lashes is also her job.<\/p>\n

\n

Bransford is under contract as a brand ambassador for Opulence Lashes and earns money by promoting the company\u2019s products. That\u2019s possible thanks to a sea change in NCAA rules governing college athletes, who can now make money from their \u201cNIL\u201d \u2014 name, image and likeness.<\/p>\n

Prompted by a Supreme Court decision that invalidated restrictions on certain payments to student-athletes, the NCAA changed its rules on NIL income in 2021. While student-athletes still can\u2019t be paid to play their sport or attend a specific school, they can receive money for things like ad deals, endorsements and appearances. Student-athletes\u2019 NIL earning opportunities are governed by a patchwork of state laws and school and conference rules.<\/p>\n

Before Bransford went to college, she and her parents studied the NIL rules that apply to her. Now, her parents help her manage the money she earns. \u201cA percentage of the money I spend, but my parents put the rest in a savings account,\u201d Bransford says. \u201cIt\u2019s important to have someone helping you who is older, more experienced, who knows about taxes and bills.\u201d<\/p>\n

Not every student-athlete has a sound financial support system like Bransford, so many of them need guidance managing NIL income. For this cohort of earners, NIL money can be used to\u00a0pay for education expenses, hire professional support and invest in their future. With a prudent financial strategy, NIL income could be the foundation for generational wealth for some athletes.<\/p>\n

See<\/strong>: NIL deals for NCAA athletes: College collectives that pay students are here to stay<\/p>\n

Consider a marketplace<\/strong><\/h2>\n

If you\u2019re hoping to monetize your NIL, you may want to join a marketplace, a digital platform that helps match student-athletes with companies or individuals who want to work with them. Some marketplaces are affiliated with a school, and some aren\u2019t.<\/p>\n

Working with a marketplace isn\u2019t required to monetize one\u2019s NIL, but it can make the process easier. Student-athletes should report all NIL activity to their school, which evaluates every deal to ensure it\u2019s compliant with state law and the school\u2019s policies. College and university marketplaces automatically process NIL contracts through their compliance departments so the student doesn\u2019t have to submit the paperwork.<\/p>\n

Some marketplaces charge fees, so it\u2019s important that students determine whether the cost outweighs the benefit of being promoted by the marketplace. \u201cDo your due diligence,\u201d says Justin Bass, sports and entertainment managing director at MAI Capital Management. \u201cAre you getting something more for the fee?\u201d<\/p>\n

Also see: <\/strong>Where high school athletes can profit from name, image and likeness deals, there\u2019s opportunity for entrepreneurial teens<\/p>\n

Pay for school<\/strong><\/h2>\n

Only 1% of student-athletes receive full-ride scholarships that cover all college expenses, so it makes sense to use NIL income to pay for school. NIL compensation doesn\u2019t affect athletic scholarships, but depending on the amount of the NIL earnings, a student-athlete may no longer qualify for need-based financial aid.<\/p>\n

Those making NIL income should talk to their school\u2019s\u00a0financial aid\u00a0office to determine how that money will affect their aid package. \u201cIf I get $50,000 via NIL activities, I might need to set aside a good portion of that to pay for my tuition next year,\u201d says Adam Cocco, assistant professor of sport administration at the University of Louisville.<\/p>\n

Get professional help<\/strong><\/h2>\n

Managing NIL rules and income in addition to keeping up with athletics and academics can be overwhelming. Consider hiring a professional like a\u00a0financial adviser, and thoroughly vet anyone before adding them to your team.<\/p>\n

Former University of Miami track star and Olympian Lauryn Williams turned pro in 2004 when she accepted a $200,000 contract from Nike
\n NKE,
\n -1.87%<\/bg-quote>,<\/span>
\n an amount she described as \u201cawesome but terrifying.\u201d<\/p>\n

She admits to making financial mistakes, which she attributes to taking the advice of others who didn\u2019t have experience with significant sums of money. After retiring from professional sports, Williams became a certified financial planner to give others the financial help she needed as a 20-year-old college student.<\/p>\n

Williams advises working with a fee-only certified financial planner and a certified public accountant or enrolled agent for help\u00a0filing taxes. Student-athletes who earn more than $400 need to file. Taxes can be tricky, especially for those who earn NIL income in different states.<\/p>\n

\u201cGet a professional in your life even if it costs money,\u201d Williams says. \u201cThis is a unique earning situation, and you don\u2019t want to mess that up.\u201d<\/p>\n

Check out:<\/strong> Take MarketWatch\u2019s 2023 Financial Literacy Quiz. Will you get 10\/10?<\/p>\n

\u2018Let the money transform your life\u2019<\/strong><\/h2>\n

According to the NCAA, fewer than 2% of student-athletes turn pro, and even for those who do, a professional athletic career usually lasts just five to seven years, according to a study from the RBC Sports Professionals group. These sobering facts make investing a way to safeguard one\u2019s future, whether sports are a part of it or not. \u201cLet compound interest work for you, and let the money transform your life and how it\u2019ll look 20, 30 years from now,\u201d Cocco says.<\/p>\n

NIL income qualifies student-athletes to contribute to individual retirement accounts, or\u00a0IRAs, and their self-employed status unlocks access to simplified employee pension IRAs and\u00a0solo 401(k)s. A financial adviser can help choose the best retirement accounts for you.<\/p>\n

Williams recommends investing in one\u2019s financial education, too. If your school doesn\u2019t offer personal finance education, Williams says, use some NIL income to pay for an online course.<\/p>\n

\u201cWith the NIL money, you can have fun with it \u2014 or do something responsible with it,\u201d she says. \u201cThis is your opportunity to get yourself on track for retirement.\u201d<\/p>\n

More From NerdWallet<\/strong><\/p>\n

Jae Bratton writes for NerdWallet. Email: jbratton@nerdwallet.com.<\/em><\/p>\n<\/p><\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

This article is reprinted by permission from NerdWallet.\u00a0The investing information provided on this page is for educational purposes only. NerdWallet does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities\u00a0or other investments. When University of Notre Dame sophomore Calyn \u201cKK\u201d Bransford takes the court […]<\/p>\n","protected":false},"author":1,"featured_media":32558,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[236],"tags":[83],"class_list":["post-32557","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-news","tag-featured","post_format-post-format-gallery"],"yoast_head":"\n\u2018Let the money transform your life\u2019: How student athletes can use NIL income to invest in their future | iFintechWorld<\/title>\n<meta name=\"description\" content=\"This article is reprinted by permission from NerdWallet.\u00a0The investing information provided on this page is for educational purposes only. 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