10 Questions a Parent of a Student-Athlete Should Ask a Financial Advisor
What experience do you have working with student-athletes and managing NIL income?
It’s important to work with a financial advisor who understands the unique financial landscape of student-athletes, especially those earning NIL income and balancing both their athletic and academic careers.How can you help my child navigate the complexities of managing NIL earnings, including taxes and reporting requirements?
Inquire about the advisor’s strategies for handling the tax implications of NIL deals, how to track income and expenses, and ensuring compliance with tax laws.Should my child form a business entity (such as an LLC or Sole Proprietorship) to manage their NIL income? What are the pros and cons?
Ask if it would be beneficial to set up a business structure for NIL income, and what benefits or challenges this might present in terms of tax advantages and legal protections.What strategies can you recommend for saving or investing NIL earnings for both short-term and long-term financial goals?
Discuss the best ways to save and invest NIL income, considering that the athlete’s earnings may be irregular, and explore options for building both short-term savings and long-term wealth.How should we approach budgeting and financial planning with fluctuating NIL income and athletic commitments?
Ask about tools or strategies to help manage NIL income that may vary throughout the year and balance this with academic and athletic commitments to ensure overall financial stability.What tax strategies can we use to minimize the tax liability on my child’s NIL income?
Discuss ways to minimize taxes, such as taking advantage of available deductions for business-related expenses, education costs, and planning for self-employment taxes.How can we plan for retirement when my child’s NIL income is temporary or irregular?
Inquire about options for setting up retirement accounts, such as a Roth IRA or SEP-IRA, and how to make consistent contributions despite an unpredictable income stream.What strategies should we consider for managing any student loans or financial aid while balancing NIL income?
Ask how NIL earnings might impact financial aid eligibility or student loan repayment, and what steps can be taken to ensure your child’s financial aid isn’t negatively affected by their NIL deals.What steps can we take to ensure my child’s financial future after their athletic career ends, particularly in terms of career development or transitioning to post-sports opportunities?
Talk about how the advisor can help prepare for a transition out of athletics by setting up a financial plan for career development, education, or other business opportunities after sports.How do you involve your clients in financial decisions, and how often should we meet to review my child’s financial situation?
Understand how the financial advisor works with clients and their preferred level of involvement in decision-making. Ask about how often they will review and update your child’s financial plans to adjust to changes in income or goals.
For any further questions or guidance, feel free to reach out to me at in**@**********************es.com. I’m here to assist you in navigating your child’s financial journey.
These questions will help ensure that your child receives comprehensive, informed, and practical financial advice that sets them up for success both during and after their athletic career.