Athletes and entertainers face unique wealth management opportunities, considerations and challenges. The athletes and entertainers we interviewed shared their personal stories and perspectives to highlight the need for more financial education in the sports and entertainment world. We thank them for being strong advocates of financial literacy.
Kamal’s advice
Kamal’s advice
“Many of us were not raised in homes where money was openly discussed. Don’t let that stop you from learning how to manage your wealth. You have to plan for the future. The pandemic is a wake-up call. Will you be OK if you stop working? For how long?”
The age of seventeen
When Kamal was 17, a music manager called him with an opportunity to join a hip-hop band that had landed a new record deal. The gifted, young keyboard player was still a high school student in Philadelphia, while the band was in London preparing for their European tour. Although his parents thought it was more important for him to earn a college degree, Kamal wanted to pursue his music dreams. In 1994, he accepted the band’s offer the day after his high school graduation. “I told my parents ‘I’m moving to London. I’ll figure out college later.’ That’s how I ended up joining the Roots.”
Rich with music
Founded by childhood friends Ahmir “Questlove” Thompson and Tariq “Black Thought” Trotter, the Roots were building their name in the early 1990s by playing in venues across Europe. “We shared everything. We bought food together and partied together. Money was looked at as a necessity, not the goal. We were nomads, doing small shows for peanuts. All the money we made was used to get to the next show. We had just enough money to travel back and forth.” The laissez-faire attitude toward finances suited Kamal. His childhood home was rich with music but at times short on cash. The sounds of Bob Marley, Prince, Herbie Hancock and Thelonious Monk were interspersed with talk of unpaid bills that he overheard through the walls.
It was taboo to talk about money with the kids. We were told to stay in our child’s place. This is grown-up stuff.
Spending freely
The Roots returned stateside two years later. Kamal and his bandmates started receiving generous cash advances from their record label. “I never thought ‘Let me save my money.’ I was making more money but also spending more money. That mentality went on and on. Life was a party. My closest friends and I would go to a club and I’d pick up the tab.” Kamal notes that financial literacy is lacking among many entertainers because it’s not openly discussed. “In the African American household, money and credit isn’t always taught. You don’t learn about checks and balances. I didn’t even have a bank account. I’d come home with $10,000 in cash.”
New money mindset
Kamal became a father at age 23. The responsibilities of being a parent changed his money mindset. Providing a secure future for a growing family became a priority. “Before that, my mentality was to play hard and spend it while I have it. You can’t take it with you. When I had my first kid, I started to wake up a bit.” Parenthood pulled him away from the party scene. “I started spending a lot more time on my craft, creating and recording music.”
I didn’t even have a bank account. I’d come home with $10,000 in cash.
A landmark album
The Roots breakthrough 1999 album, Things Fall Apart, was a critical and commercial success. Named after Nigerian author Chinua Achebe’s debut novel, the record features the group’s unique live instrumentation of drums, bass and keyboards. Its insightful lyrics on race, society and urban life remain relevant today, more than 20 years later. The single “You Got Me” with Erykah Badu on vocals won a GRAMMY® Award for Best Rap Performance by a Duo or Group.
Late night house band
The release of several more albums, including The Tipping Point in 2004 and Game Theory in 2006, followed over the next decade. Touted as one of the greatest live bands by Rolling Stone magazine in 2013, The Roots were asked to join the show Late Night with Jimmy Fallon as its official house band in 2009. Their tenure on the show gave them an opportunity to collaborate with a wide range of artists and exposure to a mainstream audience. In 2014, The Roots followed Jimmy to The Tonight Show Starring Jimmy Fallon when he took over as its new host. Their musical pairings, from Adele to BTS to Sting, have garnered hundreds of millions of views on social media.
Steady flow
Like many artists, the majority of the band’s revenue came from live performances. Their foray into late night television has provided two steady sources of income: a salary for performing on The Tonight Show Starring Jimmy Fallon and residuals from the show. The Roots’ prolific music catalogue also generates royalties. The group is still often on the road, touring in between their television appearances. However, concerts are expensive to produce, involving many, from bandmates to crew members and stylists. Venue costs, marketing and advertising, insurance and legal fees add to the expense. “Our take is only whatever is left over after the bills are paid. You also have to account for taxes.”
I’d like to be involved with helping younger musicians. … I didn’t think about retirement or 529 college savings plans when I was younger.
Family matters
Kamal and his wife, Nina, have five children, three in elementary school and two in college. “I’m 44. All my kids need to go to college. We had to set aside money for that.” They also hired tutors, coaches and trainers for their son Kamal Jr., now a freshman quarterback at Temple University. While he is fortunate to be part of a legendary music group that has endured the test of time, Kamal wishes he learned more about investing and managing his wealth earlier on in his career. “When you’re young, you only think about the present. At this stage of my life, I’m responsible for my kids and their futures. I want things to be cool for them if anything should happen to me. You have to plan ahead.”
The investment world
A love of music has always been Kamal’s primary motivator, but he wants to encourage other entertainers to pay more attention to managing their wealth from the start. “I’d like to be involved with helping younger musicians. It’s important to catch them in the beginning of their careers. I didn’t think about retirement or 529 college savings plans when I was younger.” Kamal knows the pressures of becoming financially successful and the importance of setting boundaries. “Everybody has their hand out when you have a record label contract.”
Investing can be intimidating for the inexperienced. “You hear about people losing money in the stock market. It’s important for financial advisors to explain the risks and rewards. How have others gained from investing?” For Kamal, fully understanding investment opportunities and how they fit into his risk tolerance and time horizons are key.
The thought of being able to live off of your investment income is appealing when you can’t go to New York City to perform.
Pandemic wake-up call
The pandemic has served as a wake-up call for entertainers around the world, including Kamal. Production on The Tonight Show Starring Jimmy Fallon halted. Recording sessions were put on hold. Virtually all live in-person performances were cancelled. Even though The Roots have always been in demand with multiple projects in its pipeline, work dried up. “The thought of being able to live off of your investment income is appealing when you can’t go to New York City to perform.” This was a new experience for Kamal. “You might be OK for a few months, but what about longer? How will you take care of your family? It absolutely makes you think about your financial plans.”
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