Investing for Athletes 101: How NIL Money Can Grow Long After College

NIL (Name, Image, and Likeness) income has given athletes a new opportunity: turning today’s earnings into tomorrow’s wealth. While it’s tempting to spend every check on cars, clothes, or trips, the smartest athletes are thinking bigger. They’re using their NIL dollars to invest — and building financial security that lasts long after their playing days.

If you’re new to investing, don’t worry. Here’s Investing for Athletes 101 — the basics you need to know to get started and keep your NIL money growing for years to come.

1. Why Athletes Should Invest

Your athletic career won’t last forever, but your money can. Investing allows you to:

• Grow your NIL earnings through compound interest.

• Prepare for life after sports, whether that’s grad school, a new career, or starting a business.

• Create options and freedom — money invested today gives you choices tomorrow.

Spending disappears, but investments keep working for you.

2. Start With the Basics: Stocks, Bonds, and Funds

• Stocks = Pieces of ownership in companies. They can grow in value but come with risk.

• Bonds = Loans you give to companies or governments. Lower growth, but steadier.

• Index Funds & ETFs = A mix of many stocks or bonds packaged together. These are simple, low-cost ways to diversify (spread your money out to reduce risk).

Most athletes don’t need complicated investments. A diversified fund is often the best starting point.

3. Use Tax-Advantaged Accounts First

If you’re earning NIL money, you may qualify for investment accounts that come with tax benefits:

• Roth IRA: Contribute after-tax dollars, and your money grows tax-free. Perfect for young athletes because withdrawals in retirement are tax-free.

• Traditional IRA: Contributions may be tax-deductible now, but you’ll pay taxes later when you withdraw.

• Brokerage Account: Flexible, but no special tax advantages. Good for extra money after maxing out an IRA.

4. Make It Automatic

The easiest way to invest is to make it a habit.

• Set up automatic transfers from your NIL account to your investment account each month.

• Even small amounts ($100 a month) can add up over time.

• Remember: consistency beats trying to “time the market.”

5. Avoid the Traps

Athletes often get targeted with risky or flashy investments. Watch out for:

• Friends or strangers pushing “can’t miss” deals.

• High-fee products that eat away at your returns.

• Crypto or day trading hype without understanding the risks.

If you don’t understand it, don’t invest in it.

6. Build a Team Around You

You don’t have to figure this out alone. A financial advisor with NIL experience can help you:

• Choose the right accounts and funds.

• Balance investing with taxes, budgeting, and saving.

• Stay disciplined when emotions or hype tempt you to overspend.

The Bottom Line

Your NIL income is more than just a paycheck — it’s a chance to build wealth that can outlast your athletic career. By starting early, keeping it simple, and investing consistently, you can turn NIL money into a long-term financial foundation.

Ready to start investing wisely? Use the NIL Financial Advisor Directory to connect with professionals who can help you build a strategy that makes your NIL money grow long after college.