Football & Financial Planning


Football is back in most parts of the country, so it seems like a good time to see what we can learn about financial planning from the boys on the gridiron.

Transcript

John Stillman: Welcome once again to Wright Money Tips. I'm John Stillman alongside Isaac Wright, chartered financial consultant and the president of Financial Dynamics and Associates serving you throughout the greater Richmond area. Find them online at financialandestateplanning.com. Heck, that might be where you're listening to this right now. You can also reach out by phone 804-777-9999. And we're going to have some fun today because well, since football is back in most parts of the country, certainly not with full stadiums, but football is at least being played most places around the country. We're going to take the game of football and we're going to create some analogies from the game and apply it to the financial world. So I will provide something from the game of football. Isaac, you will give us the financial wisdom therein. So let's start with this.

Isaac Wright: Sounds good.

John Stillman: Kneeling during the National Anthem. Now, if you had to turn that into a fight, no, I'm just kidding, that's not one of them. We're starting with the red zone, the red zone in football. How does that relate to the financial world?

Isaac Wright: Well, it's kind of what we just finished saying in a way. If you think about a lot of the teams that are successful on the football team, have a high conversion percentage of making touchdowns when they get into the last 20 yards of their opponents field. So they're in a position to score and this is where for a lot of you, especially if you're getting closer to retirement or maybe even recently transitioned into retirement, this is where also mistakes can be extremely costly. And so you don't want to be in a place where all of a sudden you've made a lot of right decisions and then you get down into that retirement red zone. Some people have heard that before, but just to be clear that you're in that five to 10 year phase before you retire, you may not be able to recover from a significant financial mistake.

Isaac Wright: And again, you need to be in a place where you understand how much money you're willing to lose both psychologically and financially, if the market were to have another significant pull back, like we just finished having here back in March. I know the market's been, even though right now, it's been a roller coaster. We've had a nice comeback from March, but I just think people are a little off center is probably the best word to say, as far as the reality of where money could be at, if we have another correction. And especially if we have another correction like we had in 2000, 2001 and 2, you're looking at a multi-year correction bear market type of scenario. I can guarantee you that would affect people's retirement. Maybe not everybody's, but it will affect people's retirement and their lifestyle, for sure. And you got to understand what that may look like, so you can make better plans if you want to make any adjustments.

Isaac Wright: So again, as of right here, Richmond, Virginia, if you've listened to the show for years, we're at the corner of 288, Powhite Parkway serving the entire Richmond Metro area, 804-777-9999.

John Stillman: So maybe you're in that financial red zone already. You're getting close to retirement and you want to be sure you don't fumble. You don't turn the ball over. You want a touchdown, a field goal would be okay, but you really want a touch down. And you definitely don't want to turn the ball over. You want to make sure that you're positioned well. 804-777-9999 is the number to call. All right, how about the hurry up on offense, Isaac. Maybe you should explain what the hurry up offense is, and then how that relates to the financial realm.

Isaac Wright: Well, in football, if you're behind in the fourth quarter, you may call a hurry up offense to try to create as many chances as you can to catch up if you're behind on the leaderboard. So for example, if you needed a touchdown, there's two minutes left, or maybe you're in down more than a touchdown, you have to make things happen fast. In retirement, as far as your personal retirement plan, if you're behind, you may also feel tempted to take more risk to try to close that proverbial gap. But really, that's almost never the best way to fix the problem. And the reason for that is, you are putting even more risk out that you may otherwise not know, and if you are already behind and you fall behind further, I think the best thing I can say for people that I've had many, many times come in the offices, this is, they appreciate honesty that we provide.

Isaac Wright: So let me just say, if you're behind on your retirement, if you're behind on your finances and you have somebody to say, listen, instead of necessarily having to go out there and buy a bunch of high flying stocks that may crash, you may also want to consider working an extra six months, 12 months, 18 months, maybe find a part-time job where you don't have to make five or 10 grand a month in your full-time work, maybe you just need to make a thousand bucks a month and you have everything covered.

Isaac Wright: Sometimes it's about looking at your expenses, not necessarily trying to play catch up with your investments or a combination of both, but that's why I just tell people that hurry up offense, really, a lot of times puts you in a high anxiety type of situation. Yes, you may be able to take on a little bit more risk, but sometimes I really think people start gambling. That's where they get in trouble, trying to time the market. So again, reach out, feel free to talk to me. 804-777-9999. This is just me and you over the phone. So if you call me, won't put you on air, just having a chat to make sure if there's any way we can help you so you'll know what that looks like.

John Stillman: 804-777-9999, is that number to call. We're talking about football and financial planning. What analogies can we draw from the game of football that would apply to the financial world? Isaac is weaving those analogies for us. How about the victory formation? This is, I guess it's kind of the opposite of what you talked about with the hurry up offense. So what's the victory formation all about in football. And then how do we apply that to our financial lives?

Isaac Wright: Yeah. So in football, the victory formation is when you have a win within your grasp and the only thing that you need to do is avoiding fumbling the ball. So you line up in a victory, formation, you take a knee and you run out the clock. Now you don't care about gaining any more yards. You only care about holding on to the ball. Again, in retirement planning, sometimes you need to stop worrying about getting more money and try to accumulate more assets and just be sure you don't lose what you've already accumulated. There's quite a few people we've met here that is in a great position to retire and live the type of lifestyle that they want to live. And they don't have to chase and have to take the risk of losing too much money. Again, doesn't mean you put all your eggs in one basket.

Isaac Wright: If you've ever listened to me, I believe in the market, I believe in a lot of different asset classes, but you need to design a portfolio that puts you in that "victory formation". You have to have the plan proactively put in place as you go through the game of retirement and know when to lineup in that formation. John, that's actually a really good analogy there. I didn't see that on the conversation we had before we got on air but I really like that analogy with the victory formation because truly how bad would you feel if you are actually ready and able to retire and you didn't know it, or you maybe had a thought that you could possibly, but you never really put together a financial plan. And we have another March of 2020 where the market drops 30% in 25 trading days, roughly. And except next time it's not 25 trading days it's 250 trading days. That to me is shame on you, if you don't have a plan that puts you in that position. We're here to help you with that. We're here to offer the clarity and the relationship support that will help you through your retirement years. 804-777-9999.

John Stillman: Again, that's 804-777-9999. And the last football and financial planning analogy that we'll flesh out here today, Isaac, is the idea that in both places, football and finances, good coaching makes a difference.

Isaac Wright: Well, as everybody has seen, if you've paid any attention to not really just football anymore, but how much any sport, some teams can never find success. And they're constantly firing a coach every three or four years, but the successful teams find a good coach, keep him or her around for a long time and win a lot of games. Well in retirement planning, some people try to be successful without having a coach at all. And others keep the same coach that they've had for years, even though things may be aren't working out anymore. And then there's others that try to find the right coach to help them achieve their goals, and really that's what we're trying to provide you is the opportunity to have listen, a team around you that can understand who you are, what drives you, what to get as far as where you're going to be at for your retirement lifestyle in the future and analysis of your existing situation. And really how to get to point A to point B.

Isaac Wright: I mean, truly we're financial coaches. So the things that we're covering today, the metaphors that we're covering today, I can't be any really clear about the fact that a lot of this comes in hand-in-hand when it comes to your personal finances. But John, I think all of the things that we're talking about here, as we go through football season, we go through life, we're going through the end of the year. We're trying to figure out how things are going to look with our finances. I really hope all of you that do listen to the program, if you're listening right now, the years that we've been on the program every week we do get a call, we get a response. We get somebody talking to us, appreciate all the work that we've put into the program. If you have any questions about your personal retirement, your finances investments, feel free. Give me a call Isaac Wright, 804-777-9999, locally right here in Richmond, Virginia.

John Stillman: So there you go. If you're going to win the financial game, you have to have a good coach. Just like you need a good coach in football. Isaac can be your coach reach out 804-777-9999. Thanks for tuning in and we'll talk with you again soon right here on the Wright Money Tips.

Announcer: This information is for illustrative purposes only and does not constitute tax, investment or legal advice. Always consult with a qualified investment, legal or tax professional before taking any action.

Announcer: Advisory services offered through JW Cole Advisors, Inc., JWCA. Financial Dynamics and Associates, Inc. and JWCH are unaffiliated entities.

Advisory services offered through J.W. Cole Advisors, Inc.
 
J.W. Cole Advisors, Inc., and Financial Dynamics and Associates, Inc. are unaffiliated entities.

Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.

 
Advisors must be properly registered in the state where you live in order to conduct securities related business with you. A response to your request for information might be delayed in order to assure our compliance with this regulation. No information provided on this site is intended as a solicitation to buy or sell any security. The investments and services mentioned may not be available in every state. No security will be offered or sold to any person, in any state in which such offer, solicitation, purchase, or sale would be unlawful under securities laws of such jurisdictions.
 
Securities are not FDIC insured or guaranteed and may lose value.  Investments are not guaranteed, and you can lose money. Neither Financial Dynamics and Associates, Inc., JWC/JWCA are tax or legal advisors and this information should not be considered tax or legal advice.  Consult with a tax and/or legal advisor for such issues.

Privacy Policy | Terms of Use