5 Retirement Lessons from the Return of Sports

1. Be Adaptable

Professional sports have had to adapt to this COVID-19 world with an adjusted schedule. They have instituted new testing protocols and new competitive rules, like baseball deciding to put a runner on second base during extra innings. They have adjusted to new game venues, like basketball’s bubble in Orlando with virtual fans.

Look at your financial life: Is it adaptable? Before COVID-19, it made sense to own a broad index to get exposure to the market. In this COVID-19 economy, it has been more important than ever to identify winners and losers. Which are the good companies or strong sectors of the market that will do well in this new economy? Which of the changes we have been living with the past few months are long lasting, and how can you adjust your financial strategy to make the most of them?

As of Aug. 11, 2020, the US Large Cap growth index is up over 15% on the year, while the value index is down over 10% over the same period. Is your financial and wealth management strategy built to be adaptable? What has your adviser done — or what have you done — to make sure it can endure the fast-changing world?

2. Redefine Success and Keep the End in Mind

The return of sports has filled a need for live-action entertainment, but why do the athletes do it? Of course, a paycheck is a major motivating factor, but so is the thrill of competition and the desire to crown a champion.

In managing your money, how are you defining success? Is it beating an index? Is it producing the income necessary for the lifestyle you want?

Market volatility often requires a re-evaluation of strategy. The resurgence of markets over the past quarter provides a test to see how your strategy would have handled different market periods. It might be time to re-evaluate, not just the results of your strategy but the path and the plan to get there. Also consider other financial tools, instruments or strategies to help you get to your ultimate financial goals.

3. Always Keep Improving

Know that investing is a process of continual improvement. Just like athletes must continue to train and improve, as an investor it is important to keep educating yourself and stay informed. While you might rely on trusted advisers in making important financial decisions, know that the buck ultimately stops with you in keeping those advisers on track and holding them accountable. Are you asking the right questions?

Your advisers should be comfortable and welcome questions. If you manage assets yourself, make sure you are periodically testing your own strategies and market theories.

Some of the top questions to be asking now:

• How will the conservative part of my portfolio bode in the future with lower rates?
• Will international markets continue to lag in the decade ahead?
• What indexes am I using and why?
• Will growth keep outperforming value?
• Does individual stock selection hold more value in this environment?
• Is my portfolio prepared for potential continued volatility?

4. Be Bigger than the Game

While sports have returned, so has the debate over standing for the anthem and how players demonstrate their positions on important social and political topics. It reminds us that while the sport is important, there are important issues outside of the game that we are all dealing with.

With your money, it is important to stay informed and look at the dollars and cents, but what is it all for? What is your greater purpose? What causes do you care most about, and how can those financial assets be marshaled to support those goals?

Re-evaluate your portfolio, but also look closer at your personal priorities and how you can support some of your broader goals. Maybe that means being a more socially conscious investor and being more selective about the companies you invest in. Maybe it means increasing your gifts to charitable causes that support your worldview. Maybe it means volunteering and contributing more time to advance the ideas you believe in. How can your money and your financial plan further support your personal goals for yourself and your community?

5. See the Silver Lining

This can be hard to do. In the NBA, a bubble has meant time away from family, and missing the roar of the crowd. However, it is also meant a unique bond with your teammates and the other athletes. Fans too have seen the game from new angles and new perspectives.

Retirees have had their retirement life upended, too. Travel plans, art classes and social engagements all put on hold thanks to COVID. As easy as it can be to get down about the state of the world, do your best to find the positives. Maybe you cannot go on a cruise to Europe, but your grandkids are available for an outdoor movie in the backyard. Maybe you cannot go to a ballgame, but you can try a virtual game night with friends. Maybe you cannot go to yoga, but you can buy an electric bicycle and explore parts of the outdoors you never knew existed.

Life in retirement is going to throw you curveballs. Whether it is the market or something in your personal life. The happiest retirees are finding joy in the little things. They are adapting to that changing world, and they are staying as active as they can, finding creative ways to engage and enjoy the world around them.

The world of sports is figuring it out, and so can you.