For most student-athletes, retirement feels like a lifetime away. But the truth is, the earlier you start saving, the easier it is to build real wealth. NIL money offers a rare chance for young athletes to begin investing for the future while they’re still in school. With the power of time and compound growth, even small contributions can turn into a comfortable retirement.

Why Start Now?

  • Compound Growth: Money invested at age 20 can grow for 40+ years. Waiting even 10 years could mean hundreds of thousands less by retirement.

  • Short Earning Window: Athletic careers may not last long, and NIL opportunities could fade after college. Start while the money is flowing.

  • Financial Freedom: Saving early gives you more options later—whether that’s retiring early, starting a business, or giving back to your community.

Retirement Accounts for NIL Athletes

1. Roth IRA

  • Best Fit for Students: Contributions are made with after-tax money, but growth and withdrawals in retirement are tax-free.

  • Contribution Limit: $7,000 per year (2024).

  • Why It Works: Most student-athletes are in a low tax bracket now—making it the perfect time to lock in tax-free growth.

2. Traditional IRA

  • Contributions may be tax-deductible now, but you’ll pay taxes on withdrawals later.

  • Useful if your NIL income is high and you need current-year tax relief.

3. Solo 401(k)

  • Available if you form an LLC or are self-employed.

  • Higher contribution limits than IRAs.

  • Great option if NIL income is significant and you want to save more aggressively.

How Much Should You Save?

A good rule of thumb: Save at least 10–15% of NIL income for the future.

  • Example: Earn $5,000 from deals → Save $500–$750 into a Roth IRA.

  • Even $50–$100 per month can grow into six figures by retirement.

Balancing Retirement With Other Priorities

  • First: Cover basics—budget, emergency fund, taxes.

  • Next: Start small with retirement savings.

  • Then: Increase contributions as your NIL earnings grow.

Remember, it doesn’t have to be all or nothing—consistency matters more than the amount at first.

Mistakes to Avoid

  • Waiting until “later” to start.

  • Taking money out of retirement accounts early (penalties apply).

  • Falling for risky “get rich quick” investments instead of sticking with long-term growth strategies like index funds.

Final Takeaway

NIL gives you more than spending money—it gives you a head start on financial independence. By saving a portion of your earnings in retirement accounts now, you can set yourself up for a future where money works for you, long after the cheering crowds are gone.