The big game is this weekend and while it’s not the most logical time to be thinking about retirement during your party planning, the two actually have a lot in common. Apply these football strategies to your savings plan to win big:
1. You only need small gains to go far
As long as a football team moves 10 yards every four plays, they will keep the ball. All in all, if a team can average a mere 3 to 4 yards per play, they will be well on their way to winning.
It works the same with your savings. You simply need to make slow and steady progress, just like your favorite football team.
2. Keep your eye on the clock
Timing is a huge part of football and your retirement savings, too. If you’re older than 40, you need to run a hurry-up offense to quickly beef up your retirement fund. If you’re younger, you may have time to kill but you still need to make plays to up your score!
3. Mix up your plays for best results
With investments, you don’t have an opposing team to dance around, but you do want to run around those big dips in the stock market and keep your money safe. You do that by diversifying your investments. Mix it up, and put your money in a number of investments that make sense for your age and savings goals.
4. Build a solid defense You don’t have burly linebackers protecting you, but you should have a emergency fund under your belt to provide a solid defense for yourself and your family.
5. Don’t let penalties undermine you
Dont get held back by dipping into your retirement fund before age 59½, getting hit with a 10 percent early-withdraw penalty. You’ll pay the same penalty on the earnings in a 529 plan if you decide to pull that money out for a boat, vacation or anything else not remotely related to your children’s education.
6. Sometimes you have to go long
At least once a year, you should go long. Sit down and re-evaluate your goals, review your portfolio and make sure you’re where you need to be. If not, figure out what changes have to happen to get back on track. It could be you need to rebalance your investments, put more into savings or reconsider your insurance.
Our Investment Services Rep, Jake Bleyenberg is available for free consultations about your retirement plan and budgeting. Score BIG and start planning your future today!