It’s Super Bowl time again, and whether you’re a sports fan or not, you can probably learn something from the Super Bowl teams that you can apply to other endeavors — such as investing.
What might these lessons be? Take a look:
Pick players carefully. Super Bowl teams don’t get there out of luck; they’ve made it in part because they have carefully chosen players. And to potentially achieve success as an investor, you, too, need carefully chosen “players” — investments that are chosen for your individual situation.
Choose a diversified mix of players. Not only do Super Bowl teams have good players, but they have good ones at different positions — and these players tend to play well together. As an investor, you should own a variety of investments with different capabilities — such as stocks for growth and bonds for income — and your various investments should complement, rather than duplicate, one another. Strive to build a diversified portfolio containing investments appropriate for your situation, such as stocks, bonds, government securities, certificates of deposit (CDs) and other vehicles.
Diversifying your holdings may help reduce the effects of market volatility.
Follow a “game plan.” Super Bowl teams are skilled at creating game plans to maximize their strengths and exploit their opponents’ weaknesses. When you invest, you also can benefit from a game plan — a strategy to help you work toward your goals.
This strategy may incorporate several elements, such as taking advantage of your Individual Retirement Account (IRA) and your 401(k) or other employer-sponsored retirement plan, pursuing new investment opportunities as they arise and reviewing your portfolio regularly to make sure it’s still appropriate.
Stay dedicated to your goals. Virtually all Super Bowl teams have had to overcome obstacles, such as injuries, bad weather and a tough schedule. But through persistence and a constant devotion to their ultimate goal, they persevere. As an investor, you’ll face some challenges, too, such as political and economic turmoil that can upset the financial markets. But if you own a diversified mix of quality investments and follow a long-term strategy that’s tailored to your objectives, you can keep moving forward, despite the “bumps in the road” that all investors face.
Get good coaching. Super Bowl teams typically are well-coached, with disciplined head coaches and innovative offensive and defensive coordinators. When you’re trying to achieve financial goals, you too can benefit from strong “coaching.” As your “head coach,” you might choose a financial professional — someone who can help you identify your goals and recommend an investment strategy.
Achieving your financial goals can be a fairly big event in your life — and to help work toward that point, you can take a few tips from the teams that have made it to the Big Game.
Ross Hage is a financial advisor with Edward Jones. For more information, call (928) 468-2281. This article was written by Edward Jones for use by your local Edward Jones financial advisor.