Financial Lessons From Football

[00:49] –A Quick Aside About Football.

• Joel shares the tribulations that come with being a Minnesota Vikings fan.

[2:44] – Protecting The Ball In The Red Zone. 

• The red zone is comprised of the last twenty yards from the end zone on the football field. If you’re in the red zone, you need to protect the football, and make sure to score. Conversely, if you’re on defense, you’ve got to stop the other team. In retirement, the red zone consists of the five years leading up to and just after retirement. During this time, it’s critical you minimize your financial mistakes.

[4:51]  – The Hurry-Up Offense.   

• Late in the game, you’ll see a team forego the opportunity for a huddle and deploy their hurry-up offense. Usually, that team is behind, and they’re trying to make up for lost time. In retirement, it’s tempting to play catch-up and take on more risk in your portfolio. Don’t do it. It rarely works, and it can cause more harm than good.

[6:47] – Taking A Knee.

• If your team is ahead late in the football game, they’re probably going to take a knee and execute what’s called a victory formation. This means they’ll run out the clock rather than trying to run a play. The idea is to minimize mistakes and come away with a win. As you approach retirement, don’t take on large investing risks when you’re already ahead. As one advisor said, why keep playing the game once you’ve won the game?

[8:26] – Good Coaching Makes A Difference.

• This one speaks for itself. Guys like Bill Belichick and Nick Saban know how to field a good team every single year. In retirement, you need a strong financial coach who can help execute your proverbial playbook. You need them to guide you as you plan and keep you on course along the way.

Other Bits And Pieces:

[11:23] – Joel Takes A Deep Dive Into Explaining Bond Funds.

• Bonds are confusing. Joel gives us a quick explanation of how bonds work.

[15:30] – Joel And John Talk Taxes.

• Many of you aren’t taking proper tax planning steps. You might even assume your taxes will be lower in retirement. In reality, that might not be the case.