Game Day Kickoff: Lessons for Investing
In a country full of people who disagree on a variety of issues, we find common ground on game days. Nearly 80% of Americans watched at least one football game last year. We may not agree on the halftime pizza toppings, but we can agree that we’re watching the game. Unfortunately, we don’t have the same fanatical devotion to our finances, which is often confusing. These investment lessons are designed for those of us who should have spent more time in the library and less at the tailgate. What follows is a breakdown of your financial portfolio the way you break down your fantasy team, with help to beef up your most important positions.
Quarterback: Stocks
Just like a football team, the high-growth prospects dictate the overall strength of your financial portfolio. Stocks are the best way to grow the value of your holdings. Like your QB, if your stock portfolio is weak, scout prospects, because you won’t get far without an elite QB.
Offensive Line: Savings Products
No one gets excited about the offensive line. But the offensive line is the backbone of the offense. No quarterback can throw a touchdown while he’s pinned to the turf. Likewise, that workhorse running back isn’t going anywhere without a hole through which to run. Your savings are the same way. They protect your stocks because a nest egg in savings means you don’t have to sell your stocks if times get tough, which means you can sell them when they’re at their highest value. We may all watch the ball in a football game the same way that we check the stock ticker in the morning, but a diverse savings portfolio can offer tax breaks, steady returns, and security that are unparalleled in your long-term portfolio. No wonder offensive linemen consistently score the highest on the intelligence tests at the pro football draft combine: savings are smart.
If you want unparalleled security with the ability to withdraw your money in an emergency, check out our money market accounts.
If you’re more interested in protecting yourself from the blitz – the IRS – we have savings plans offering tax protection. You can get more information and investment lessons by scheduling an appointment with our investment professionals.
Draft Picks: Home Equity
You can’t build a successful team without draft picks. In the same way, you can’t be financially secure without owning at least one large asset. For most Americans, that asset is their home. You can borrow against its value in an emergency, transfer high-interest credit card debt into a low-interest home equity loan, and most importantly, you’re getting a large chunk of your payment back as equity every month. Whether you want to buy your first home or turn your home equity into something more tangible, we can help. You can find information about our home loans here or apply for a home equity loan here.
It’s the best time of the year for most of our teams. We can convince ourselves that everything that went wrong last year will improve and everything that went right can be even better. We put on the irrational, optimistic face paint of fans and ignore all common sense, particularly with regards to chili and chicken wings. Don’t ignore your financial football roster, though. Be rational and realistic. And contact us so we can help with more investment lessons. After all, even the best coaches in the world bring in offensive and defensive coordinators.
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