Finally saw a thread on the other site that is interesting (took awhile), but most players have little financial literacy and Carl Nassib just

[EdwardoCarrachio]

ran for the BOT. I really think it would be in our best interest to have Carl be a regular contributor in some way to the program.

Now that NIL is out there and many of our athletes are likely to have at least a short stint in the NFL, I can't think of a more important time to get Carl Nassib back to PSU to educate our players. IMO Carl did it right. He went into the NFL with a modest contract and invested a large portion of that salary. Yes, he did get that coveted 2nd contract but he was prepared to be set for life with a very short NFL career.

Now you have some players pulling some NIL and already thinking they're rich. They don't know what they'll owe in taxes, if they might have a future injury that ends their career short of the NFL, and they have no idea how short the average NFL career is. More than ever, it would be an awesome advantage to bring back a guy like Carl who has lived it and managed his finances in a mature and prudent manner.

Any thoughts on this and how best to educate our players to maximize their opportunity financially?

 

[NJPSU]

This likely already being done on some level.

 

[EdwardoCarrachio]

This likely already being done on some level.

It is in Lasch but from my understanding, the players haven't taken it very seriously. That's why I think you get a recent NFL player that has been through it and did it right to educate them. I think he'd be more relatable, and perhaps more players would take the right path to financial security.

 

[crm114psu]

It is in Lasch but from my understanding, the players haven't taken it very seriously. That's why I think you get a recent NFL player that has been through it and did it right to educate them. I think he'd be more relatable, and perhaps more players would take the right path to financial security.

Maybe he could start by teaching them how to park their $100,000 vehicles without getting towed. Or, at least to not act like a thug when facing the consequences. That would be valuable, right?

 

[EdwardoCarrachio]

Maybe he could start by teaching them how to park their $100,000 vehicles without getting towed. Or, at least to not act like a thug when facing the consequences. That would be valuable, right?

Is there are reason that you want to conflate these very separate issues?

 

[PSUSignore]

I'm pretty sure PSU and most schools have been giving players some basic financial advice for decades, especially since their industry is full of predatory advisors, agents, etc. all looking to get their piece of the millionaire athlete's salary. I think it's also part of the NFL's onboarding process. There's only so much you can do to help. Fortunately some, like Nassib, actually paid attention.

 

[LandoComando]

ran for the BOT. I really think it would be in our best interest to have Carl be a regular contributor in some way to the program.

Now that NIL is out there and many of our athletes are likely to have at least a short stint in the NFL, I can't think of a more important time to get Carl Nassib back to PSU to educate our players. IMO Carl did it right. He went into the NFL with a modest contract and invested a large portion of that salary. Yes, he did get that coveted 2nd contract but he was prepared to be set for life with a very short NFL career.

Now you have some players pulling some NIL and already thinking they're rich. They don't know what they'll owe in taxes, if they might have a future injury that ends their career short of the NFL, and they have no idea how short the average NFL career is. More than ever, it would be an awesome advantage to bring back a guy like Carl who has lived it and managed his finances in a mature and prudent manner.

Any thoughts on this and how best to educate our players to maximize their opportunity financially?

Why would a board member be advising players?

 

[junior1]

ran for the BOT. I really think it would be in our best interest to have Carl be a regular contributor in some way to the program.

Now that NIL is out there and many of our athletes are likely to have at least a short stint in the NFL, I can't think of a more important time to get Carl Nassib back to PSU to educate our players. IMO Carl did it right. He went into the NFL with a modest contract and invested a large portion of that salary. Yes, he did get that coveted 2nd contract but he was prepared to be set for life with a very short NFL career.

Now you have some players pulling some NIL and already thinking they're rich. They don't know what they'll owe in taxes, if they might have a future injury that ends their career short of the NFL, and they have no idea how short the average NFL career is. More than ever, it would be an awesome advantage to bring back a guy like Carl who has lived it and managed his finances in a mature and prudent manner.

Any thoughts on this and how best to educate our players to maximize their opportunity financially?

most Americans have little financial literacy!!!

 

[EdwardoCarrachio]

Why would a board member be advising players?

He has the requisite skill and experience. Plus he can model the correct way to handle sustained success and how to parlay an NFL career into something more.

 

[bcspsu]

Is there are reason that you want to conflate these very separate issues?

Based on previous posts by this poster, he or she doesn’t have a positive thing to say about PSU football past, present or future. I neither expect nor want posters to be completely uncritical of this program, but this poster is developing a pattern of completely negative posts, many of which are intellectually dishonest.

 

[LandoComando]

He has the requisite skill and experience. Plus he can model the correct way to handle sustained success and how to parlay an NFL career into something more.

Again, why would a board member be doing that? That's not their role. I'm all for hiring someone to provide financial guidance but that shouldn't be someone on the BOT

 

[Cowbell Man]

Again, why would a board member be doing that? That's not their role. I'm all for hiring someone to provide financial guidance but that shouldn't be someone on the BOT

I don’t follow, Lando. If he were qualified to speak on the subject, what would being on the BOT affect delivering the message? BOT members have all sorts of other jobs which may or may not include consulting on their expertise.

Why would being on the BOT preclude it?

 

[LandoComando]

I don’t follow, Lando. If he were qualified to speak on the subject, what would being on the BOT affect delivering the message? BOT members have all sorts of other jobs which may or may not include consulting on their expertise.

Why would being on the BOT preclude it?

There's absolutely no way a BOT member should be working that closely with a program. It's a conflict. Not that most here care when they vote people onto the board when they shouldn't

 

[bison13]

most Americans have little financial literacy!!!

I asked this question teaching a financial literacy class in HS a few years back, "would you rather have a luxury car and a crappy living conditions or would you rather have nice living conditions and drive a crappy looking car"

90+% of them chose the nice car. Most said they would rather drive a 100K car and live in section 8 than drive a 12 year old camry but have a 1500+ sq ft house in the suburbs.

To quote one young man, "people see what you drive, they dont have to see where you live". That attitude is why so many never make it.

 

[Obliviax]

my brother in law had a job visiting NBA teams twice a year and teaching them a class on financial literacy. There were two parts to the class: financial literacy and living as a celebrity (women, entrapment, drugs, booze, etc.). The stories he told are both funny and heartbreaking. Two quick ones:

• An NBA near HoFer (now a coach) who had two years left at $7m per year while on the bench (old and broken down on the back end of a long contract). He was actually losing money as he had a staff of five people, a $25,000 mortgage, $50,000 per year in property taxes, and five cars. $10,000 per month in flowers. He sold the cars, houses, and fired the staff to save up about $4m by the time his contract was over. He was fortunate to get a good coaching position and eventually made it to head coach.
• A case where a woman was caught trying to impregnate herself by an NBA star using a turkey baster and the players used condom (she fished out of the trash) while he used the bathroom after sex.

Few are prepared for sudden wealth and stardom. Many of these players are even worse off than that.

 

[heckmans]

There's absolutely no way a BOT member should be working that closely with a program. It's a conflict. Not that most here care when they vote people onto the board when they shouldn't

Come now...Let's not start pretending that the alumni elected BOT members have any power or influence over PSU

 

[heckmans]

It is in Lasch but from my understanding, the players haven't taken it very seriously. That's why I think you get a recent NFL player that has been through it and did it right to educate them. I think he'd be more relatable, and perhaps more players would take the right path to financial security.

My roommate at PSU is in wealth management in an NFL town. By chance, he became acquainted with a player and that player began investing with him. He wound up becoming registered with the NFLPA and annually presents to rookie seminars on this topic. Sadly, most do not hear, or perhaps understand.
Over the last few decades, he has had a number of NFL clients, including a HOFer who trusted my buddy with his entire fortune. Some of the stories he has told me are crazy. In a nutshell, this is largely a culture and upbringing issue. There is the "lifestyle" issue that someone else mentioned. Unfortunately, there is also the network of the player. When a guy gets in the league, he has a host of friends from home that have lots of "good ideas" about where a player should invest their income. These guys obviously want to help their friends, who are not nearly as successful as they currently are, and it always goes bad. If your boy from the neighborhood suggests you can get both get rich by taking old computers and extracting the gold and silver from the circuit boards, RUN! Unfortunately, many don't.
As I said above, it's mostly a culture and upbringing issue. It's clear that Carl Nassib had a good upbringing. Aside from what everyone could watch on Hard Knocks, I can also say that I became acquainted with his sister, through her employer, for a few years, and she is a good individual. That Carl had the wherewithal to do what he did, is not surprising.

I like your thoughts and not saying it shouldn't be done, but there is the old adage about leading a horse to water, but not being able to make it drink. The reality is, that so many of these players don't have the background to 'hear' the message.
Let's hope that, in the end, NIL is a net positive, and isn't something that in hindsight, causes more harm than good for the individuals receiving it.

 

[LandoComando]

Come now...Let's not start pretending that the alumni elected BOT members have any power or influence over PSU

Fair but they also shouldn't be teaching finances...they can be hired to that position if we create one

 

[EdwardoCarrachio]

E

My roommate at PSU is in wealth management in an NFL town. By chance, he became acquainted with a player and that player began investing with him. He wound up becoming registered with the NFLPA and annually presents to rookie seminars on this topic. Sadly, most do not hear, or perhaps understand.
Over the last few decades, he has had a number of NFL clients, including a HOFer who trusted my buddy with his entire fortune. Some of the stories he has told me are crazy. In a nutshell, this is largely a culture and upbringing issue. There is the "lifestyle" issue that someone else mentioned. Unfortunately, there is also the network of the player. When a guy gets in the league, he has a host of friends from home that have lots of "good ideas" about where a player should invest their income. These guys obviously want to help their friends, who are not nearly as successful as they currently are, and it always goes bad. If your boy from the neighborhood suggests you can get both get rich by taking old computers and extracting the gold and silver from the circuit boards, RUN! Unfortunately, many don't.
As I said above, it's mostly a culture and upbringing issue. It's clear that Carl Nassib had a good upbringing. Aside from what everyone could watch on Hard Knocks, I can also say that I became acquainted with his sister, through her employer, for a few years, and she is a good individual. That Carl had the wherewithal to do what he did, is not surprising.

I like your thoughts and not saying it shouldn't be done, but there is the old adage about leading a horse to water, but not being able to make it drink. The reality is, that so many of these players don't have the background to 'hear' the message.
Let's hope that, in the end, NIL is a net positive, and isn't something that in hindsight, causes more harm than good for the individuals receiving it.

Excellent post and very realistic. You can educate but it doesn't reach everyone. You can only hope that at least some of it reaches as many as possible. That's really no different than anything in education and that population and topic is more challenging than most. I'd still want to give it our best effort to help as many as we could on whatever level they are able to receive and implement it.

 

[voltz99]

Nassib is not going to change their culture.


Most millennials cant even make my fries hot.

 

[junior1]

I asked this question teaching a financial literacy class in HS a few years back, "would you rather have a luxury car and a crappy living conditions or would you rather have nice living conditions and drive a crappy looking car"

90+% of them chose the nice car. Most said they would rather drive a 100K car and live in section 8 than drive a 12 year old camry but have a 1500+ sq ft house in the suburbs.

To quote one young man, "people see what you drive, they dont have to see where you live". That attitude is why so many never make it.

and why 50% of people about to retire have less than $50,000 saved...good luck to them

 

[bison13]

and why 50% of people about to retire have less than $50,000 saved...good luck to them

gotta be a big baller in your 20's/30's, no time for compound interest

 

[Obliviax]

gotta be a big baller in your 20's/30's, no time for compound interest

well, just imagine having that kind of money at that age!

Reminds me of a time when a friend asked me if I'd give up three years of my life to spend one night with Pam Anderson. I said it depends on if it is three months when I am in the prime of life or those last, shitty, three months of your life when you are 80-ish and terminal.

he said he do it either way.

 

[PSUSignore]

I asked this question teaching a financial literacy class in HS a few years back, "would you rather have a luxury car and a crappy living conditions or would you rather have nice living conditions and drive a crappy looking car"

90+% of them chose the nice car. Most said they would rather drive a 100K car and live in section 8 than drive a 12 year old camry but have a 1500+ sq ft house in the suburbs.

To quote one young man, "people see what you drive, they dont have to see where you live". That attitude is why so many never make it.

Youth is wasted on the young. Far too many people in the world do not understand that it's relatively "easy" (maybe straightforward is the better term) to become a millionaire without a high paying job if you simply have the discipline to save a little bit over a long period of time and let compounding interest do it's thing.

Something else I thought of with respect to Nassib. Now that he's officially affiliated with the BOT, does this open up PSU to legal risk if he gives financial advice and the players end up going broke by following it? Is he a licensed advisor? Does he need to be? I have no idea but it's something the BOT and university needs to understand before they blindly let him go forward, despite his intentions being in the right place.

 

[EdwardoCarrachio]

Youth is wasted on the young. Far too many people in the world do not understand that it's relatively "easy" (maybe straightforward is the better term) to become a millionaire without a high paying job if you simply have the discipline to save a little bit over a long period of time and let compounding interest do it's thing.

Something else I thought of with respect to Nassib. Now that he's officially affiliated with the BOT, does this open up PSU to legal risk if he gives financial advice and the players end up going broke by following it? Is he a licensed advisor? Does he need to be? I have no idea but it's something the BOT and university needs to understand before they blindly let him go forward, despite his intentions being in the right place.

Valid points. Although I don't think millionaire is even going to provide a comfortable retirement without some sort of rare these days pension.

Ex. 1) $1 million only yields a $40k per year draw without eroding principle at the once rule of thumb 4% retirement withdrawal rate and that is IF you are investing in a relatively safe asset allocation, and we don't experience years like 2022 for investors.

Ex. 2) Alternately, if you were fine with using up your entire $1 million for retirement and were investing with a very conservative 4% return, then you could draw only a little over $72k per year for 20 years of retirement before running out of money.

The point is that $1 million doesn't support the standard of living it once did. The above calculations were at fixed rate withdrawals which don't even account for your standard of living declining over those 20 years of retirement due to inflation eating away at your buying power. For example, that $40k withdrawal in example 1 only buys $21,752 worth of stuff in today's dollars 20 year from now if inflation was 3% (it is currently like 3.5%). And that $72k annual withdrawal from example 2 is only buying $39,153 of stuff in today's dollars 20 years from now if inflation was 3%.