As March Madness came to a close, we wanted to have a little fun and talk about what basketball and financial planning had in common. Is your financial plan ready for its one shining moment?
(Click the featured times below to jump forward in the episode)
What can we learn from the game of basketball and how it relates to financial planning? Whether you’ve been watching all of March Madness this year or not, there’s plenty to learn in this episode of Cover Your Assets KC.
In the game, there is a shot clock that forces you to shoot the ball within a certain amount of time to keep the game moving. What’s the financial equivalent? Retirement decisions you might have to make within a certain timeline include early retirement buyouts. What other decisions go alongside this? Another shot clock type moment is when you’re nearing retirement and don’t feel like you’ve gotten everything you wanted done.
In basketball, you can’t double dribble. Once you stop dribbling, you have a limited number of options for what you can do next. When you start Social Security can be a similar decision that gives you no do-overs. Why might you delay Social Security? Or, when is it better to start it on the earlier side?
In basketball, fouls come up. You can get away with one or two fouls, but after too many you’ll be out of the game. What kind of financial decisions can be okay once or twice but not mistakes you want to make too often? Don’t sweat small mistakes, but avoid silly “fouls” like racking up credit card debt or not saving 10 percent of what you make as a millennial.
Not all basketball teams make it to the “big dance” in March. For some, just making it to the tournament is success whereas others aim to make it to the Final Four. In retirement, what is your definition of success? What are your goals? Make sure that you set realistic goals in order to be successful and content in your financial life.
Listen to the entire episode or click on the timestamps below to compare basketball and financial planning.
[2:08] – What can we learn about retirement planning from basketball, starting with the shot clock?
[7:24] – What’s the retirement equivalent of a double dribble?
[12:26] – What fouls do you want to avoid in retirement planning?
[17:08] – What’s success defined as?
“Define your own success and do it realistically.“
– David Dickens
PODCAST: How to Prepare for Early Retirement