Three short weeks ago, the media was screaming about the massive hit the Dow Jones Industrial® plunging 395 points. But then by the end of January, it had recovered over 1,000 points.
Sounds like the usual stock market roller coaster having its usual field day with market investors.
Amidst all that market noise is the yearly spectacle of the Super Bowl. I’m not a big sports guy. I like to fish (something you’ll hear more about if you keep following my blogs—that’s a promise). But it’s really hard to miss the hype around the biggest sporting event in America, especially since this one is the golden anniversary—Super Bowl 50.
So I know that the two teams in this year’s contest are both the first in their conferences. The Carolina Panthers have Cam Newton. Big, strong, and by all accounts unlike any quarterback to play the game. In a way, you could say he’s like a bull market—he surges, and surges, and surges. Just like the market, only time will tell when the forward motion is halted. There is no force of nature that can surge ahead indefinitely—and if history is any indication, that is especially true of the stock market.
The Denver Broncos, on the other hand, have Peyton Manning. He’s old. Some say washed up. But he’s one of the all-time-greats, and his preparation for any game is legendary. That’s what I like about him.
I’m a money guy. I like to help give my clients a bright financial future, one with little worry, and as I have said many times, one with many blessings. So as I watch the market ride up and down, up and down over the past few weeks, I think about a lot of things (like I’m really glad I don’t have my life savings in the stock market), but because it’s Super Bowl season, I also think now and again about those two quarterbacks.
Every time the market drops, it eats away at someone’s hard-earned savings, USA Today reported that on January 15, 2016, $2.3 trillion dollars had been “robbed” from investors (their word, not mine).
Any good team player studies the game. Football players watch game film. Manning has taken that part of the game and turned it into a fine art. I found out he studies the opposing team’s defense so thoroughly that no coach worth his very large paycheck ever discounts Manning—no matter how bad he’s playing (and I guess it got pretty bad earlier in the football season). Some say he’s not a “threat” like he used to be. But is someone who prepares that much ever not a threat?
I like preparation. I think it’s just makes good money sense to know what you’re up against when it comes to your savings, your money, the stuff you’ve put away for rainy days and retirement.
But what is good preparation in terms of your handling your money well? Is it listening to the T.V. finance “gurus” who will tell you the same kind of tired advice about the market roller-coastering: to leave your money in the market and ride it out because “you’ll always bounce back.” What if you don’t have time to bounce back? What if you take your money out when the market is down and you’ve retired so you’re not putting any new money into your stock market accounts? This is called “sequence of return” risks, and it can decimate an account faster than you ever care to believe. Those who are well-prepared know about it—and how to avoid it as much as possible.
Good preparation is knowing your options—and it’s also not discounting them just because the “gurus” say to. There are some options out there for your money that many in the financial industry will denigrate—not because they’re bad or don’t work, but because they simply don’t know enough about them.
Do you think Peyton Manning discounts something he sees in a defense because it’s considered “old fashioned”? I doubt it. If something works to stop the forward march of an opposing team, the coach uses it. If something works to protect your money while still giving you a decent rate of return, then might not it be worth a closer look?
I hope the best team wins this coming Sunday. I’m pretty sure that the team that triumphs will do so because they’ve prepared, they’ve kept their head in the game, and they’re not afraid to do what works.
I want you to win with your money. If you haven’t seen the proof yet, click here now to watch my educational videos.
Keep your head in the game, and you will win the most important game of all—peace of mind for yourself and those you love.