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It is the NFL season! A lot of us are watching our favorite teams in the playoffs. Do you know that there are many parallels between what happens on the football field and how you manage your finances? How about we look into these similarities? Let us see what tactics we can take away from the sport that is applicable to professional athlete wealth management or even individual financial planning. Here you go!

NFL & Financial Planning | The Parallels Between Them

The Red Zone

A successful team mostly performs well in the red zone. The matches in these 20 yards need accurate execution and provide little room for issues. There is a lot riding on the effort because success in this zone mostly means winning the game.

There is a financial red zone that goes from 5 to 10 years prior to 5 years after retirement. This is when focusing on the details, such as budgeting properly, saving more, and steering clear of mistakes, is difficult for a winning retirement. These years are important as there is so little amount of time left before you retire to correct mistakes, including taking too much risk. You want to secure the assets that you have worked so hard to gather and invest new money conservatively.

The Hurry-Up Offense

This strategy lets a team adopt a faster approach to play when they are running out of time and required to gain a lot of ground immediately. If the hurry-up defense is done well, it disturbs the opponent’s defense strategy. However, this offensive move is difficult to carry out efficiently and mostly leads to mistakes. This can end up in chaos, and the team may become uncertain about what to do.

We can see a similar situation in financial planning for athletes when people feel as if they are behind in investing and saving. If they do not think they have sufficient money for retirement, they are willing to take more risk than it is wise.

It is a risky reaction and can even mean gambling with money that is meant to last longer. Yes, retirees and pre-retirees require some element of growth. However, few of them are in a position to get aggressive growth and accept the risk that accompanies it.

The Victory Formation

With the win in hand, a team can make the victory formation, permitting the quarterback to take a knee as the clock runs out. Because play stops, there is no chance for a fumble that can put the win at threat. It is the same with retirement. If you have saved enough for you to retire comfortably, you might not need to grow your money anymore. You can even take the market risk linked with a growth strategy. You have only one go at retiring, so why blow that winning position?

Good Coaches Make A Difference

A great coach can make or break a franchise or team. We have seen it firsthand in the NFL, fantasy football, and college football. All players have an advantage from having a coach who offers them the motivation and guidance they need to achieve their maximum potential.

In financial planning, an athlete financial advisor is there to figure things out. Financial experts help you prepare a smart game plan. You can benefit from their experiences, knowledge, and objectivity in implementing and developing a winning strategy. It is advantageous to have another set of eyes on your portfolio to make sure you are on the right track. It also helps you do everything possible to achieve a financially secure retirement.  

Summing It All Up!

Any successful NFL team depends on discipline, strategy, and a great coach to win on the field. Similarly, impactful financial planning also needs expertise and dedication. Whether you are someone preparing for retirement or a professional athlete, the similarities between financial management and the NFL are crystal clear. Having a financial coach, just like an athlete’s trusted advisor, can make all the difference in assisting you in building a winning and solid game plan for your financial future. With the right approaches and guidance, you can score a massive financial victory.