Football Season has begun and training camp is in session. All over the nation, our favorite high school, college, and pro teams are preparing for the season. Soon we will be cheering on the offense to score lots of touchdowns and exhorting the defense to protect the lead with the ultimate goal of winning a championship. When you think about it, winning your investing game is similar. You need “offense” investments that will generate money; “defense” products are also needed to protect your gains. So, what is the financial offense and defense you need to win the investing game?
The goal of the offense in football is to score touchdowns. The goal of your financial offense is to increase your wealth by growing your portfolio and generating income. Investments such as individual stocks, stock mutual funds, and stock ETFs are used to grow the value of your account. Their job is to provide big gains in value much like a football team’s quarterback and receivers gain big yards by passing the ball. However, every effective offense has a running game to go with its passing attack. The running backs on the football team gain the yardage on the ground. For your investing game plan, Dividend Paying Stocks, Dividend Paying ETFs, Growth and Income Mutual Funds, Balanced Mutual Funds are your running backs. These investments pay quarterly income which adds value to your portfolio while providing consistent growth over time . In addition, investments such as individual bonds, bond mutual funds, and bond ETFs are great short yardage performers. They are usually solid performers that show little gains in value but provide a steady income. Taken together, these investments can provide the offense you need to score financial touchdowns and win your investing game.
The purpose of the defense in football is to protect your end zone. The goal of your financial defense is to protect your wealth by keeping you from using your investments. This is where insurance comes in. Life, Disability, Health, and Long-Term Care Insurances are your defense.
Life Insurance pays funeral costs, pays off any debts, replaces income, provides a nest egg for your heirs, and pays estate taxes. Disability Insurance protects you by providing income if you should become incapacitated and cannot work. Health Insurance will offset the cost of medical care especially in the event of a serious illness. Long-Term Care Insurance will offset the cost of nursing home and home health care. Often overlooked and not considered glorious, a football team’s defense provides the backbone of championship teams.
As we cheer on our favorite high school, college, and pro teams, take some time to look at your investing football team. Make sure you have the right offense to win games and the best defense needed to win championships. An advisor can help put together your roster to bring home the title.
Feel free to contact me at 252-515-0242, matthewdressel.ifsg@gmail.com , or http://www.independentfinancialsolutionsgroup.com/index.html
Disclosures:
- I.F.S.G. is a fee-based registered independent advisory specializing in investments and life insurance solutions.
- I.F.S.G. does not give tax advice. You should consult your tax professional before making any financial decisions.
- Securities provided by Trade PMR. Fixed income products provided to Trade PMR by Advisor Asset Management, Crew & Associates, and JBB Financial.
- Investing Money in securities exposes investors to risks including loss of principal and past performance is not an indicator of future returns. Investors should carefully consider investment risks, objectives, charges, and expenses.
