The concept behind football seems so straight forward: Take that strange “prolate spheroid” shaped ball down the field and cross the line to score. The team in possession of the ball has 4 opportunities to move the ball 10 yards. How challenging could it be? 

The issue is that the other team consists of 11 individuals whose sole goal is to prevent you from winning. The opposing team might be viewed as forces that could make saving formidable. I find that every time I watch football, it serves as a stark reminder of the challenges that come with saving for retirement. I use retirement savings specifically because it is the most important financial goal in most people’s lives. Perhaps you see some correlations as well, but here are ten that I have observed.

Football & Retirement: 10 Shared Strategies

1. Start With a Clearly Defined Objective:
   If you think of retirement planning as a game, having enough saved to be able to replace your job-related income with cash flow from your portfolio is the “win.” Ideally, you know the target amount to accumulate before you even start the game.
2. It Pays to Start Strong and Score Early
   The most victorious savers we’ve observed started early. When financial pressures escalated at certain times, this provided them with a buffer.
3. Play Offense
   Offense is your ability to earn income and save. During your working years, you may be able to strategize and score more points, perhaps by getting a better paying job and/or earning more income. Playing good offense is a starting point, but it doesn’t win the game. You need to play good defense as well.
4. Defense is Critical
   Defense is your ability to control spending and avoid falling for schemes that seem too good to be true but might end up costing you the game. Planning for major purchases and controlling your lifestyle are key components of a solid defense. You avoid compulsive purchases and refine—by practicing every day—living within your means.
5. Know the Location of the First Down Marker 
   The first down marker is like your annual savings goal. Getting to the first down marker won’t win the game, but it means you are going in the right direction and making progress. 
6. You Run Plays
   Knowing all the forces that are trying to get you to part with your hard-earned income and savings, you run plays to try to outsmart the opponent. You may pay cash for major purchases, and say no to your kids when they want a $300 pair of shoes. You may decide to downsize to a smaller home or drive your car a few more years.
7. A Major Mistake Doesn’t Mean You’ve Lost the Game
   You can recover from a major mistake or a period where things have gone wrong. This could be an interruption in earnings (due to illness, for example), a divorce, or unwise decisions. However, it typically does require further strategizing and “upping your game” to get back on track.
8. You have a Time Limit
   When someone is in their 20s with their first real job, the idea of savings for 40 years seems intimidating. However, there is a deadline, so the sooner you get into the game, the better. The 4^th quarter is analogous to “after 50”. Like the final quarter of a football game, the last 10 years of savings are critical.
9. You May Need to Go Into Overtime
   As with a tied football game, if you have played well but haven’t clearly won (such as your savings aren’t quite enough), you go into overtime. That means you must work longer than you anticipated. Now I’m sure every football coach always knows exactly where the team made mistakes that may have prevented the overtime from happening in the first place. But now is not the time to focus on that. The goal if you are in overtime is to win as quickly as possible.
10. Get Back Up When Things Go Wrong
    Perhaps one of the most entertaining players to watch right now in the National Football League is Patrick Mahomes of the Kansas City Chiefs. You may have noticed his prodigious skills or heard about him. Yet a few weeks ago, I observed that he was truly having a bad day. His team was playing the Denver Broncos. The poor guy was recovering from the flu and a jammed left hand. Yet he did not give up. Despite the difficult circumstances, he persevered, tried his best, and kept his dignity.In

In Summary

You may realize that playing the retirement savings game may be a bit easier than facing 350-pound opponents on a football field. If you are looking for additional coaching, feel free to reach out to us. If you watch some games this weekend, I hope you reflect on this analogy. Bear in mind that retirement savings is a game we love to see our clients win.

Kristina Bolhouse, CPA/PFS, CFP®

Vice President/Shareholder

© 2023 Kristina Bolhouse and The Arkansas Financial Group, Inc., All rights reserved.

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