Thursday bits: Betting on yourself, another NFL player who planned for his future, etc.

How to bet on future income to pay for college now

Here’s a interesting concept. If you’re in college and have exhausted your financial aid and can’t get any money from family members to pay your tuition, you can borrow from an investment fund. The better you do in your career, the more you will have to pay. For instance, if you were to borrow $20,000 over four years through this program, you will pay 5.73% of your income for 10 years. Based upon an annual income of about $45,000, that would mean that your monthly payments would be about $160. Had you borrowed the money from a traditional student loan lender at 4% interest, your monthly payments over those ten years would be about $220 per month. Using the former method, if your salary was higher, say $60,000, your monthly payments would increase as well. In that scenario, you would pay about $290 per month. An interesting approach to financing your education. (Reuters)

Retired NFL player owns a grocery store in Louisiana

This is a nice story of a retired football player giving back to his community. Former NFL football player, turned entrepreneur, Tyrone Legette, saw a need and looked to fill it. An area in Baton Rogue, LA, lacked quality supermarkets, so Legette opened a store in the area. He has hired 20 people in the area to work at the store, so he’s giving back to the community in more than one way. Legette is one of those NFL players who understood that his career was short and he saved money for his future. This allowed him to establish his business after he completed his NFL career. Legette was smart with his money:

“I know that when I first got in the league in 1992, my thing was to save money, not to spend the opportunity that I had. I was one of those guys who never had an agent. I only had an attorney and my attorney was $75 an hour. I deferred my contract and only took $50,000 a year rather than taking a full salary of $350,000. I was a guy who drove my car from college for three years and let the interest of my money pay for the new car rather than my money, my principal paying for new cars. I was a guy that always felt as if I had to do the right thing because the opportunity was too good and too short to miss.” (The undefeated)

How to Fix a Retirement Plan at a School or Nonprofit

If you work for a school or nonprofit of any sort, there is a decent chance that your workplace retirement savings plan is not as good as it could be — if you are lucky enough to have one at all. While employees of universities and big hospitals often have reasonably attractive plans, public schoolteachers, charity workers and many employees of religious organizations who examine their retirement accounts frequently find that the investment choices are mediocre and the fees are too high. (NY Times)


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