NIL and tax

#26
#26
stolitonic said:
Bruh, I have done pretty well for myself in life.

At 30, my bank balance was probably more like $25
At 20, my bank balance was probably more like negative $25

Everyone walks a different path in life, but nobody I know outside of the trust fund kids was sitting on a $25k egg by that age.
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Ain't the truth. My path thru life was different, and I collected disability from the army while I was in college (still am). I had a good part time job at the time, and lived super frugal and at 30.was nowhere close to 30k i had nonstudent debt or car payments either

I read somewhere less than 30% of Americans.have three months of bills saved up

Very impulsive society RN
 
#27
#27
I’m pretty certain Spyre is withholding tax & SS from them even though they are not employees. Most will have the ability to handle the tax filing fairly easily with their next year payment if they owe anything. Some of these guys won’t pay much cause they may have several dependents depending on family structure.

The sad stories won’t come until their careers are finished, checks stop coming but the bills keep piling up.

I recall Dominque Wilkins was paying for something like 20 cars for various family members, some he really didn’t know.
 
#28
#28
They're self employeed collecting that NIL money. There's no-one withholding any taxes for them. They're not employees of Spyre or the university. Some of you people act like basic money management and paying quarterly taxes on a 1099 is rocket science.
 
#29
#29
UT Hill Man said:
I remember Willie Nelson got in deep tax trouble, had to basically go on the road for 10 years to pay off his IRS debts.

But I'm sure these 18, 19, 20 year old kids will be fine.
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I'm sure at least a dozen of the hangars on will have some good advice. "You got 8 million, that Lamborghini is only 2."
 
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#30
#30
SayUWantAreVOLution said:
I'm not sure about the angst around kids and NIL. Most Americans suck at saving money and your average 30yo has about 20k-30k in savings.

If these guys and gals end up with more or less 25k saved at 30, they're average. If they're below, even though they had millions, I hope they enjoyed it. If they're above, I hope they eventually enjoy it.

It's as though we expect these kids are going to be better than our own kids who likely blow a lot of money they should have saved too just on a smaller scale.
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Average Retirement Savings Balance by Age​

Perhaps the most official measure of American retirement savings comes from the Federal Reserve System. The Fed calculated average retirement account balances for individuals as of 2022, the latest year for which figures are available. Broken down by age, those balances are as follows:
AGEAVERAGE RETIREMENT ACCOUNT BALANCE
Younger than 35$49,130
35-44$141,520
45-54$313,220
55-64$537,560
65-74$609,230
75 or older$462,410
That came from US News and World Report April 22, 2024
 
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#31
#31
easttnbuck said:
Ain't the truth. My path thru life was different, and I collected disability from the army while I was in college (still am). I had a good part time job at the time, and lived super frugal and at 30.was nowhere close to 30k i had nonstudent debt or car payments either

I read somewhere less than 30% of Americans.have three months of bills saved up

Very impulsive society RN
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You still are in college? ;)
 
#32
#32
SpaceCoastVol said:

Average Retirement Savings Balance by Age​

Perhaps the most official measure of American retirement savings comes from the Federal Reserve System. The Fed calculated average retirement account balances for individuals as of 2022, the latest year for which figures are available. Broken down by age, those balances are as follows:
AGEAVERAGE RETIREMENT ACCOUNT BALANCE
Younger than 35$49,130
35-44$141,520
45-54$313,220
55-64$537,560
65-74$609,230
75 or older$462,410
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That's closer to figures I'd assumed but I really don't want to upset folks here who insist that's ridiculous. Everyone's mileage varies and good things and awful things can make a big difference in savings.

I'll keep to myself about this and look at my own family.
 
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#33
#33
Remy said:
For your consideration. Someone like Nico pays zero state income tax on any NIL $s he gets if he changes his residence to Tennessee rather than leaving it in California which has one of the highest income tax rates in the nation. Tennessee, Florida, and Texas are I believe the only SEC states without a state income tax. Helluva a recruiting advantage if you take a pay cut when two schools offer you the same $s or if state income taxing schools have to make up the difference with more $s just to keep the same amount in the players pockets. Bama used to have some cities that taxed income as well although that may have changed.
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Nevada, New Hampshire, and Alaska
 
#35
#35
Wahoooo said:
Just wondering…

We have all read of stories about guys going to the NFL, NBA, etc., who have come from backgrounds where there was not much wealth, if any. They get a good amount cash and many, not all, squander it, get in financial trouble, eventually owning the IRS substantial amounts.

With all these high school kids getting a lot of money, it would seem that in the near future we will be hearing many more sad stories about these kids as well. At least the kids who go to college may have slightly more maturity when it comes to these things.

Hopefully most have some legit financial advisor in their corner. If not, what happens when the IRS comes knocking?
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The dumb players who blow their money, it is hard for me to sympathize with them.With all the attention, stories, and the like about the dangers and folly of that, if elect to be stupid, you get what you deserve. It's no different than knowing that illicit drugs ruin ;Ives. That unprotected sex puts you at risk for for STDs, especially AIDS. That buying 3-4 cars, knowing you only have one azz to sit on, just to show, then going broke as a result. I could name much more. But knowing this, and opting to be willfully ignorant and arrogant, both, you get what you insist on having. Not mention the various stories, even documentary, of lottery winners who ended up broke an average of two years after hitting the jackpot. The lessons are out there, you ignore them at your own peril. Plus, I pretty sure schools and NFL agencies do try to educate players about financial management, groupies, and other parasites. You choose to listen or be stupid.I love our players, but I also know that those who refuse to learn, stupidity can't be cured.
 
#36
#36
K-town Vol Fan said:
I'm nearly certain UT has advisors for these types of things. They aren't just handing kids millions and saying here ya go have fun. At the very least I would think they take care of the tax side of things.
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UT has advisors that give them big picture advice, but they can only do that, advise. They cannot be in control of player finances or anything like that. They provide the information, it’s up to the players and anyone they hire to deal with taxes.
 
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