A famous men’s professional league of basketball is National Basketball Association, which is located in North America. NBA is reflected to be the prominent men’s professional basketball league in the world. NBA has a total of 30 teams, and it is an active member of USA Basketball known as USAB. There are four major North American professional sports leagues and NBA is among one of them. The players of the NBA are the best-paid sportsmen in the world.
The NBA has teamed up with an online financial advisory firm to help these young players to manage their finances. The company is known as Personal Capital, which will help the players using a financial education program.
Financial Education Program:
A financial education program is created by the NBA to help the players to prepare them for their retirement. There will be seminars on different topics related to finance as well as there will be education on managing 401(k) accounts. Using the finance tool by the Personal Capital the players will be able to recognize that from where the money is coming and from where it is going. They can track their net income and will be able to check the strategies of investment. They can also evaluate hidden account fees as well as they can plan for retirement. The NBA has paid a one-time fee to Personal Capital for the services they are offering.
About Personal Capital:
Six years ago a company named Personal Capital was co-founded by former PayPal and Intuit Chief Bill Harris. The company provides personalized investment guidance to the people over its website. Personal Capital also develops free tools related to the economic field. Personal Capital is a certified professional advisor. The clients of the firm can communicate with their advisor over the phone, email, etc. Three years ago the company launched its open software that has been installed by many users since then.
Feature of Personal Capital’s Digital Tool:
The players of NBA make a lot of money, and they need financial advisers to keep the track of money, but the digital tool will do this for them. Some of the features that are offered by the digital tool are:
- Cash Flow Analyzer:
This feature will give the insights into the weekly, monthly and yearly income of each player and guide them about spending and savings trends.
- Net Worth Calculator:
The players can view the sum of their liabilities and assets as well as it will provide an overview of all financial accounts.
- Retirement Planner:
This feature will help the players to assess the influence of saving rates and current collection on the retirement readiness.
- Fee Analyzer:
The players can view the fund fees as well as cost over time calculations can be done.
The dashboard will display the summary of accounts, cash flow, investment, net worth, portfolio performance and asset allocation as well.
NBA Players Spending Results Generated by the App:
The number players that are currently using this are more than 50 that range from rookies to veterans. Based on the results of the four-month interaction with the app, the top spending categories of the players are shoes, clothing, travel, entertainment, automotive, personal care as well as charitable giving.
NBA players have very less time to adjust to their new lifestyle in comparison to the players of other professional leagues in America. The massive paychecks are taken from the players as well as they handed to them. So, without having appropriate awareness of finances, it will be very problematic for them to make their earnings last for an extended period to have a better future.