Ep 6: How Financial Planning is Like Basketball

What can we learn about retirement planning from watching a basketball game? There are some fascinating similarities between the two.
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Show Notes For This Episode

On this episode of Saving the American Dream, I explain how financial planning is like basketball. You might be surprised how much they have in common.

Shot clock

In basketball, you can’t just hold on to the ball forever without taking a shot. You have a limited amount of time to get the ball up to the rim. And in financial planning, you’re sometimes on the clock and have to make choices within a relatively short window.

The later you wait to start planning for retirement, the fewer options you’ll have. In the blink of an eye you’re 45 or 50 years old and you’re getting started a little bit late. And your options are limited instead of taking a balanced approach.

Double dribble

In basketball, you can’t pick up your dribble and then just start dribbling again. So when you pick up your dribble, you’d better have a plan for what happens next.

In financial planning, there are several decisions that you might make hastily that could be equivalent to picking up your dribble without a plan. You need to focus on building flexibility into your plan, and you should build up assets on your balance sheet that are liquid and available.

Personal fouls

In basketball, committing a foul isn’t the end of the world. It’s part of the game, so getting called for a foul or two isn’t a big deal. But if you commit too many fouls, you’ll be disqualified from the game.

The same thing is true with investing. You’re going to have some investments that just don’t do well. It’s not the end of the world. And you’re probably going to make some slightly inaccurate assumptions about your lifestyle in retirement.

Things won’t go perfect every time in sports or your retirement planning. But you want to focus on mitigating the negative consequences of your mistakes.

Listen to the full podcast or use the timestamps below to jump to a specific section.

Navigating the Show

[3:20] – Shot clock

[9:21] – Double dribble

[13:03] – Personal fouls

[15:26] – Other comparisons

 

You need to build up assets on your balance sheet that are liquid and available.

– Michael Schulte

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Copyright 2020 Saving The American Dream Podcast. Michael Schulte is an investment advisor representative and certified exit planner with WestPac Wealth Partners, located at 330 South Center Street, Suite 344, Casper, Wyoming 82601. The podcast is for informational purposes only. Individual risks and investment objectives must be reviewed prior to making any recommendations. Podcasts are for informational purposes only. Any guest speakers and their firms are not affiliated with or endorsed by PAS, Guardian, or WestPac Wealth Partners and opinions stated are their own. Guardian, its subsidiaries, agents, and employees do not provide tax, legal or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. Michael is a Registered and Financial Advisor of Park Avenue Securities LLC (PAS). OSJ: 5 Centerpointe Dr Suite 150, Lake Oswego, OR 97035, 503-207-4550. Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is a wholly owned subsidiary of Guardian. WestPac Wealth Partners is not an affiliate or subsidiary of PAS or Guardian. 2022-140225 Exp 7/24