Welcome to fall, almost everyone’s favorite time of the year. School starts up, the colors change, and football at all levels kicks into high gear. Growing up in the Midwest, and having been both a high school and college football coach in the past, I see a very distinct similarity between football and finances.
If you look at the game of football, it’s divided into three phases: offense, defense, and special teams. The execution of each is paramount to the overall record of the team. In the world of finance, you have investments, risk management/insurance, and tax planning working together to provide financial confidence for individuals throughout their lifetime. The secret sauce that determines success or failure in either football or finance is simply this: The formulation and implementation of a solid game plan.
Let’s take a moment to explore this theory in more detail.
I firmly believe offense sells tickets and defense wins championships. Think about it, the offense is on the field to score points, while your investment portfolio is designed to grow as much as possible. The defense concentrates on just the opposite – minimize points scored by the opponent, and when necessary, take appropriate risk in doing so. Finally, special teams is where many huge plays can occur that may “flip the field,” both in good and bad ways. And, we haven’t even touched on the effects of turnovers, penalties, injuries, taxes, market corrections, and death or disability, as they pertain to both football and finance.
My advice is for you to seek out a financial professional – one who is a fiduciary – that will put your interests ahead of theirs. Work with them to develop a financial game plan to help give you the best chance at winning a financial championship.