A Penny Saved – It’s important to think ahead and plan for retirement
Greg Mattacola
Planning for Retirement
The NFL Draft was held just recently in Nashville.In addition to thousands of people packed down Broadway and Giants’ fans screaming for blood over the premature selection of QB Daniel Jones, one other thing couldn’t help but stand out to me.A number of young men just hit the so called lottery and are about to be paid very handsomely to play a game they love.From afar, they are about to have it all.And they can. But in no way is that guaranteed nor is it unusual for these draft day winners to end up financial losers.And there are lessons to be had for all of us, no matter our profession or salary.
The average NFL career is a little over three years.Players like Tom Brady lasting until their 40’s are the exception, not the rule.More often than not, the player’s career is over in his twenties or early thirties at the latest.So what, say you – they make millions!Well, have you heard of Bernie Kosar, Warren Sapp, Vince Young, Refrigerator Perry? All went broke.That list goes on and on.One statistic cites that 16% of former players declare bankruptcy within 12 years of stepping off the field.
How can this be? They were rolling in it, right? Therein lie the lessons for all of us.
Here are a few of the common missteps:
• Living above your means and “keeping up with the Joneses”.
• Never refusing a request from a “friend” or family member.
• Spending at the same level when no income is coming in as you did when you were employed.
• Never adhering to a budget.
• Investing in ventures you know nothing about.
• Trusting people who make promises that sound far too good to be true.
Some or all of the above not only apply to the former NFL players but to many “normal” folk in retirement.The same dangers lie in wait for all of us.People are living longer than ever.To maintain a desirable quality of life throughout your retirement years, you need a plan and some financial discipline long before the money stops coming in.Starting early, saving often and learning the magic of the word “NO” – are all far more important than the next, best luxury car. Just ask Warren Sapp if he’d like the money he paid for the Bentley back.I think we know the answer.
Original content provided by Gregory Mattacola, Esq., Financial Advisor at Strategic Financial Services in Utica, New York.
Content is provided for educational purposes only and should not be used as the basis upon which to make investment or financial decisions.
About Strategic
Founded in 1979, Strategic is a leading investment and wealth management firm managing and advising on client assets of over $2 billion.
OverviewDisclosures
Strategic Financial Services, Inc. is a SEC-registered investment advisor. The term “registered” does not imply a certain level of skill or training. “Registered” means the company has filed the necessary documentation to maintain registration as an investment advisor with the Securities and Exchange Commission.
The information contained on this site is for informational purposes and should not be considered investment advice or a recommendation of any particular security, strategy or investment product. Every client situation is different. Strategic manages customized portfolios that seek to properly reflect the particular risk and return objectives of each individual client. The discussion of any investments is for illustrative purposes only and there is no assurance that the adviser will make any investments with the same or similar characteristics as any investments presented. The investments identified and described do not represent all of the investments purchased or sold for client accounts. Any representative investments discussed were selected based on a number of factors including recent company news or earnings release. The reader should not assume that an investment identified was or will be profitable. All investments contain risk and may lose value. There is no assurance that any investments identified will remain in client accounts at the time you receive this document.
Some of the material presented is based upon forward-looking statements, information and opinions, including descriptions of anticipated market changes and expectations of future activity. Strategic Financial Services believes that such statements, information, and opinions are based upon reasonable estimates and assumptions. However, forward-looking statements, information and opinions are inherently uncertain and actual events or results may differ materially from those reflected in the forward-looking statements. Therefore, undue reliance should not be placed on such forward-looking statements, information and opinions.
No content on this website is intended to provide tax or legal advice. You are advised to seek advice on these matters from separately retained professionals.
All index returns, unless otherwise noted, are presented as price returns and have been obtained from Bloomberg. Indices are unmanaged and cannot be purchased directly by investors.