You probably won’t be thinking about it during Sunday’s big game, but the roller coaster of the stock market can leave your portfolio as deflated as…well…you know.
That’s why today some of the old rules about investing are going way of leather helmets. Here are some lessons to consider:
Kickoff – It’s never too early to begin investing. The problem for many young people is that, even when they are thinking about investing, the minimum investment levels of many funds put that goal out of reach of even an Adam Vinatieri. That’s why we at Aspiration believe low minimum levels are so important to opening up investment opportunities to everyone.
1st Quarter – The long pass makes the highlight reel on SportsCenter, but we all know that it is tough to win without a solid run and pass game. A solid investment strategy needs balance and not just high flyers. Steadily advancing the ball is the dependable approach and it also avoids…
2nd Quarter – Fumbles and interceptions. In football, turnovers matter. In investing, volatility matters. It is harder to make up ground once you’re in the hole. That’s why so many of the wealthiest investors find ways to limit their volatility. And volatility has an even bigger impact on the lives of everyday investors.
Halftime – Some investors look for “Fireworks” or investments that “Roar.” There’s nothing wrong with that. Success without setbacks is a “Teenage Dream,” but – as any Katy Perry fan knows – it’s important for your portfolio to be able to adapt to circumstances since the markets can run both “Hot n Cold.”
3rd Quarter – We all know that a great coach and great quarterback can make all the difference. In part, that’s because they can figure out the right play at the right time. In the markets, as in a football game, the terrain is always changing and the wind can suddenly be blowing in a different direction. There’s a place for passive or index investing, but running the same play no matter what doesn’t always make sense. The best active managers can make shift course and make adjustments with a huge positive impact on your investments.
4th Quarter – Thoughtful investing is especially important as one gets later in life. It’s important to both continue to put points on the board but also protect the lead you’ve hopefully built up. Outsized risks make even less sense and lower volatility matters more than ever.
What time is the 2015 Super Bowl? Super Bowl XLIX kicks off at 6:30 p.m. EST/3:30 p.m. PST on NBC. What time should you start thinking about a new kind of investing? Right about now.