Football and Finances: What it Takes to Win at Both
Effective teams and investors have these elements in common.
Few things bring out passion like money and sports.
Although football is “just a game” to some, serious fans would disagree: To them it’s the most important thing in life.
What brings both pursuits together is the necessity of a team approach. It’s nearly impossible for a football team to succeed with a great offense and a terrible defense. Or it may shine in both areas, but a poor special teams unit could still result in a losing season. Let’s examine each of these through the lens of investments.
Protective action (defense)
These are the fundamental building blocks of a financial strategy. With inadequate defense, the league’s best quarterback can be neutralized. When developing a financial plan, defense should include life insurance, a savings account and common-sense debt management.
Proactive investments (offensive)
These include a wide range of wealth-creating tools such as:
Individual and joint taxable accounts
IRAs (Roth and traditional)
Small business retirement solutions (SEP, SIMPLE, Solo k’s, 401k)
Inherited accounts
Education savings plans (529 accounts). Some are geared to provide a return over decades while others are oriented toward a shorter-term approach.
Expert partnerships (special teams)
Since Reverb doesn’t offer legal or tax advice, we partner with CPAs, attorneys and other specialists to help address specific needs in your plan. Special teams includes trusts, wills, estate plans and strategies to minimize taxes.
The key to a successful financial and football strategy is balance. Although the offensive thrill of touchdown passes gets the adrenaline pumping, no quarterback can stand without defensive and special teams. Neither can investors.
Do you have questions about your financial plan? Contact me for a free consultation.