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5 Tips for NIL (Name, Image, Likeness) Student-Athletes Thumbnail

5 Tips for NIL (Name, Image, Likeness) Student-Athletes

5 Tips for NIL (Name, Image, Likeness) Student-Athletes

 

NIL income can be a windfall for many student athletes.  Manage it carefully to avoid missteps and plan for the future.  Below 5 tips for NIL Student-Athletes: 


1) Review Contracts Carefully

It may be exciting to sign a new business deal, but proceed with caution.  You need to understand the details of the contract.  If it sounds to good to be true, it probably is.  You may want to consult an attorney before signing a deal.

 

2) Budget earnings

Most athletic careers only last a limited number of years.  Smarter spending choices should help the money last longer.  Create a budget and make a plan.  You can find many Budgeting spreadsheets online or talk to a Financial Planner for help.

 

3) Expect to Pay Taxes

Receiving income from your NIL deal is exciting, but athletes still need to pay taxes.  The IRS will be looking for their share of your earnings. Most likely, taxes won’t be deducted automatically from an NIL deal.  The athlete is responsible for paying their taxes.  Consider working with a tax professional.

 

4) Contribute to Retirement Accounts

NIL income qualifies student-athletes to contribute to individual retirement accounts.  In some instances, these contributions can reduce your income tax liability.  A financial advisor can help determine the best retirement account for you.

 

5) Enjoy the Moment

You’ve probably worked extremely hard to be in a position to earn an NIL deal.  Enjoy it, be smart, make it last, and keep going! 

 

As always, let us know if you have any questions.

 

Best, 

CRA Investment Committee

 

Matt Reynolds CPA, CFP®

Tom Reynolds, CPA 

Robert T. Martin, CFA, CFP®

Gordon Shearer Jr., CFP® 

Jeff Hilliard, CFP®, CRPC®

Joe McCaffrey, CFP® 

 


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