The state of our economic environment is told from two very different lenses. One lens is told through attention grabbing headlines tugging on our emotions. The other lens is told through the price per share of publicly traded companies, the rate of unemployment, inflation, and the cost of products sold. Both lenses can result in the Money Smart Athlete going broke or living financially independent in retirement. Learning how to adjust and see through both lenses will determine how the economic environment will effect the financial life of a professional athlete. Therefore, every Smart Money Athlete should follow these 5 steps to increase one’s opportunity to live financially independent in retirement; which are as follows:
Headlines like, “Ailing U.S Consumers Might Foreshadow Recession,” an article from Reuters on November 8, 2007 by Jonathan Stempel. “Rising U.S. Consumer Prices Are Eroding Wage Gains,” from the Wall Street Journal on August 10, 2018 by Josh Mitchell. These two articles were written more than 10 years apart but their sentiments echo one another as if they were written in the same year. These articles are loaded with information leaving the reader wondering how they effect their interest: money, family, and future. Therefore, I highly recommend every Smart Money Athlete to consult a financial professional to assist in seeing through these articles to learn how they may effect their financial livelihood.
Consulting with a registered investment adviser will help guide you in understanding how to separate headlines from the actual state of the economic environment based on facts. For example, if we look at the largest 500 companies in the US and we examine 91% of their earnings scorecard, we would determine that they have earned more from Apr.-Jun. then from Jan.-Mar, as stated by Factset on August 10, 2018. Additionally, the growth rate is 24.6%, also stated by Factset. This means the US has sold 24.6% more products this year compared to last year. Sounds like our economic environment is fine for now. Seeking advice from a registered investment adviser assures you that their recommendations are only in your best interest, and is legally biding.
Why are you saving and investing your money? What short and long term financial goals do you have, and why did you set these goals? Remember your answers to these questions. If you have never answered these questions then start there. Are you investing to leave a legacy for your children? Do you want to invest in businesses to help you transition after playing professional sports? If so, then remember the plan you and your registered investment adviser created to help you never run out of money in retirement, and have money to leave to loved ones in the event you pass away. When you remember why you’re investing your contracted salary, you’ll make sound financial decisions no matter the state of the economic environment.
Once you’ve consulted with a financial professional to help you navigate through the noise of headlines and companies’ earnings, then remembered why you are investing in specific financial instruments. Next you should review the specific investments you have bought and determine if they are still in alignment with your financial goals.
Look at your quarterly and annual statements (my clients’ statements are emailed to them every 3 months) to determine if your investment strategy is going to help you reach your financial goals. Examine the performance found on your statements usually displayed in a chart or a graph. Also, review the rate of return after fees which is usually displayed before or after the chart or graph. These indicators will help you determine if you should buy a different investment, hold on to your current investment, or buy more of your current investments. After reviewing and analyzing your information, it’s time to make any necessary changes.
The 4th step to increase your chances of having your money outlive you is to update your financial goals, increase your amount of monthly saving and investing, and make necessary changes to your financial plan.
As we go throughout life, our needs and wants change based on life events. When these changes occur, your financial professional should be notified to keep your information up-to-date. You should have a close relationship with your adviser and feel comfortable sharing vulnerable information.
A $1 this year is worth .97¢ next year due to inflation. Therefore, you should increase your monthly investment amount at least once a year. If you are investing $10,000 a month now, you should invest at least $11,000 a month next year. Lastly, make adjustments to your financial plan. This may consist of buying another annuity, increase your savings for a vacation home in Ghana, for instance, or decrease your savings for education because your kids have a received a full ride scholarship to college. Make sure these changes are made swiftly and do not delay.
My favorite step is to rest! Congratulations, you have taken all of the necessary steps to increase your chances of never outliving your money. Now is the time to sit back and rest peacefully because your financial situation is secured. Yes, unforeseen things may arise but as for now we have dotted every i and have crossed every t. You have an up-to-date customized plan, you’re taking action, and now you should reap what you have sowed which is a peace of mind.
We can not control the state of the economic environment. However, we can control how we react to the current state. Never panic and make impulsive decisions that can effect you and your family for generations to come. Instead, become well informed and make decisions based on facts. Consult with your trusted team of professionals; remember why you made your original decision; review your current plan; update the plan if necessary; and rest knowing that everything is going to work out.
Tashari Berry was the Founder and Chief Executive Officer of Tashari Financial Group, before joining Wealthcare Financial Group in 2018.
As a financial professional that provides wealth management for professional athletes, entertainers, and successful entrepreneurs, she has dedicated her career to protecting and improving the lives of her clients.
As an investment professional Tashari has a fiduciary responsibility to provide advice in the best interest of all clients; a commitment that is also a core value of Wealthcare Financial Group, Inc. Tashari started her journey in the financial industry as a financial advisor with Edward Jones, where she managed assets well into the seven figures. An entrepreneur at heart, Tashari later decided to step out on faith by launching her wealth management and investment advisory firm prior to joining Wealthcare Financial Group, Inc.
Tashari has a Bachelor of Business Administration in Finance from Howard University in Washington, D.C. Her commitment to providing quality education to her clients is truly second to none, which is why she views herself as an educator first and a financial advisor second. Education has always been a cornerstone of her motivation as she has dedicated two years abroad in China as an English teacher. Tashari resides in Lexington, KY, and is married to her high school sweetheart of over 9 years. They have two dogs, Haägen Dazs and Rice, and when she is not helping others’ fulfill their dreams, she enjoys delicious cuisine and traveling the world.
You can contact Mrs. Tashari Berry at firstname.lastname@example.org