By Peter Mastrantuono
Americans collectively gathered to watch the much-anticipated Super Bowl match-up between the greatest quarterback in football history and a supremely gifted young quarterback that may eventually prove to be his equal. Though the game failed to live up to the hype, it offered several interesting financial planning and investing parallels.
The Super Bowl and Your Financial Future
Sports success is the fruit of planning, preparation, hard work and execution, so it shouldn’t be surprising that the battle between the Kansas City Chiefs and the Tampa Bay Buccaneers was instructive for individuals planning their own financial futures. Here are four top takeaways:
Takeaway #1: Protection Matters, A Lot!
Both teams went into the game with a well thought out plan and great preparation, but as Mike Tyson, the boxer, once observed “Everyone has a plan until they get punched in the nose.”
The Buccaneers were able to execute their game plan successfully because the front line provided Tom Brady the protection he needed to be effective. Lacking that same protection, Patrick Mahomes was under pressure all through the game, rendering the Chiefs’ vaunted passing game impotent.
Financial protection is essential to achieving wealth accumulation goals because real life sometimes punches us in the nose. Wealth accumulation plans can evaporate in a minute without protection against life’s uncertainties, which is why life and disability insurance to protect against a loss of income or long-term care insurance to preserve retirement assets is so crucial.
Takeaway #2: Mistakes Can Be Very Costly
The Kansas City Chiefs’ defense made multiple, costly mistakes that resulted in penalties that gave fresh life to the Bucs’ offense, eventually leading to scores that placed the Chiefs in a hole that they could dig themselves out of.
Avoiding bad mistakes is often half the battle in achieving long-term financial success. Avoidable mistakes like investing in “risk and ruin” stocks, chasing thematic investment fads, timing the market, delaying saving and running up debt are just some of the reasons many Americans find themselves nearing retirement without adequate savings.
Takeaway #3: Steady and Balanced is Good Enough
Tom Brady had an efficient night leading his team to a Super Bowl win. It was not, however, spectacular by any measure, but with the right balance of running and passing it didn’t need to be.
It’s no different when investing for the future. It’s not necessary to find the next Apple or Amazon to succeed financially. Success can be achieved through a regular, disciplined savings plan and by investing in a well-balanced portfolio. It’s not the stuff of a 400-yard passing game and it won’t thrill anyone at a cocktail party, but this efficient approach gives individuals the highest chance of attaining their financial goals.
Takeaway #4: The Team Behind the Team
Making it to the Super Bowl is an exceptional accomplishment. While the players and coaches receive all the attention, there is a behind-the-scenes group of people instrumental in setting these teams up for success, from general managers and directors of personnel to strength and conditioning coaches and medical staff.
Like a coach or quarterback, the advisor may be the face investors see, but behind every advisor lies economic, financial and investment experts supporting the advisor and enriching the advice he or she gives to clients. Each advisor is also supported by a staff dedicated to delivering high quality service to investors.
So, when individuals choose to work with an advisor, they benefit from personalized advice backed by a team of committed professionals, just like Tom Brady.
Peter Mastrantuono is a contributing writer to MyPerfectFinancialAdvisor, the premier matchmaker between investors and advisors. Peter worked for over 30 years in the wealth management industry, focusing on retirement planning, investing, asset allocation and financial planning.