What can hockey teach us about pursuing your ideal retirement?
As we watched our Carolina Hurricanes progress in the Stanley Cup playoffs, we were reminded of three hockey strategies that are also vital in fulfilling financial planning outcomes.
And despite the early exit of the Canes in the Eastern Conference Finals, this hockey-themed episode can still assist you in the pursuit of your ideal retirement.
As Wayne Gretzky reminded us, you miss 100% of the shots you don’t take. Now on with this week’s episode.
Develop a game plan
Just like the uncertainty that ensues after the puck drops, you won’t always know the path your financial journey will take. But unlike the average thirty shots a team gets on goal in a typical game, you only get one shot of getting retirement right.
Developing your own comprehensive financial plan customized to your family’s needs will help you prepare for the uncertainty that retirement brings.
During this process, you’re able to consider the income, savings and spending targets that are priorities for you. You can then monitor how they are changing, and which accounts may be best to save in. Don’t forget to include those semi-regular expenses like home updates, car repairs, or new cars.
Model different scenarios so that you can increase your confidence in the plan. Envisioning the scenarios will give you a broader idea of different long-term pictures of what your life could be like. Don’t forget to update your game plan annually–doing so will give you peace of mind as you work through the process.
Maximize your power plays
Like when a team is on a power play in hockey, you’ll want to take advantage of those opportunities. When thinking about your personal finances, where are the areas you can capitalize on when you have a built-in advantage?
Some of these include augmenting all the saving options you can while you are still earning, like:
- maxing your 401k
- taking advantage of deferred compensation plans
- maximizing your tax-free savings
- meeting your employer match
There are many aspects that can help you maximize your savings which is why it is helpful to have a financial advisor to help you understand all economic opportunities available to you.
Click on the Talk to Advisor button to set up a time to have a free conversation with one of our advisors to see how we can help you prepare for retirement.
Winning the face-off
As you get older the penalty of making financial mistakes is greater. This is why it is important to set yourself up to win the face-off.
To ensure that you are invested appropriately ask yourself some questions about your risk tolerance.
- Do you have the appropriate stock allocation that will help you meet your goals?
- How much safety do you need to help you through the next seven years?
- How and will you rebalance your portfolio?
- How well is your diversification?
Pessimists sound smart, but optimists make money. Don’t skate to where the puck is, skate to where the puck is going. Too many investors skate where the puck is currently. This Blackrock graph, mentioned in the show, is a good demonstration of results from people that tend to follow the herd to the hot trends now vs. investing where others are selling.
Listen in to hear the many financial opportunities that you should consider so that you can be prepared to live your best retirement.
Outline of This Episode
- [2:18] Develop a game plan
- [6:50] Taking advantage of power plays
- [11:23] Winning the face-off
Resources & People Mentioned
- Episode 174 – Should You Use a Non-Qualified Deferred-Compensation Plan for Your Retirement Savings?
- Episode 135 – Our 3-Step Investing Process