This time of year, you can find football on TV almost every night of the week. Let’s take some concepts from the gridiron and apply them to retirement.
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The Bass Lines:
Lessons From The Gridiron: The Red Zone.
- [00:28] – The red zone is that last twenty yards from the goal line on the football field. If a team gets to the red zone, it means they’re most likely about to score. The red zone is hugely important for both the offense and the defense. If you’re on offense, it’d be a shame to march all the way down the field just to fumble the ball away or settle for a field goal. Conversely, if you’re on defense, you don’t want to let the opposing team into your end zone. Mistakes in the red zone are often magnified, so you have to be careful, and take advantage of every opportunity. As you’re approaching retirement, think of that last five to ten years as your financial red zone. At that point, you’re on the threshold of retirement, and you really can’t afford to make any mistakes. You’ve worked really hard to get to this point, and you need to make wise decisions.
Lessons From The Gridiron: The Hurry-Up Offense.
- [3:00] – The hurry-up offense is a two-minute drill you run at the end of the ballgame. Let’s say your team has performed poorly, and now they need to score quickly to win. They run quick plays and try to make the most of the time they have left on the clock. You’re basically trying to give yourself as many chances as possible to score before time runs out. In retirement planning, if you’re behind in your financial life, you might be tempted to try to quickly close the gap by making risky investment decisions. Don’t do this. It’s a dangerous strategy. You’d be much better off to increase your savings or plan to work a year or two longer. Maybe you can even plan to spend less in retirement, but don’t fall victim to the temptation that you can launch that hail mary pass right before you retire.
Lessons From The Gridiron: Victory Formation.
- [4:45] – This is basically the opposite of the hurry-up offense. If your team is winning at the end of the game, they just want the game to be over. Their goal is to wind the clock down as fast as they can to secure the victory. There’s no need to take unnecessary risk, and they’re most likely going to simply take a knee to avoid making any unnecessary errors. As you develop your financial plan, you might reach the point where you finally feel like you have what you need to live the lifestyle you want in retirement. All you have to do at this point is keep what you have. Don’t invest like you’re in your twenties and thirties. Lower your risk, run the proverbial clock out, and enjoy your victory in retirement.
Lessons From The Gridiron: Good Coaches Make A Difference.
- [7:44] – We’ve all seen the teams that have the same coaches for years and years. Think about the Pittsburgh Steelers who’ve only had three coaches since the 1960s. Teams like the Steelers hang on to their coaches because they’re really good at what they do. You wouldn’t expect to see Nick Saban, Mike Krzyzewski, or Roy Williams getting canned any time soon. On the other hand, bad teams seem to run a coaching carousel. Just look at the Cleveland Browns who change out coaches and quarterbacks like they’re spare parts at a junkyard. Coaching makes a difference, and in your financial life, you need a coach who can help you plan and execute your financial goals.
Much like a game of football on the gridiron, your retirement is something you want to win. Find a good coach, and develop a winning game plan to score a victory in retirement. - Mr. Stillman's OpusTweet This