Yogi Berra: Brilliant Financial Planner
Last week we lost a wonderful humanitarian, community leader and all-around nice guy.
Yogi Berra is best known for being one of the greatest baseball players of all time. He was an 18-time All Star, attained 13 World Series rings, garnered 3 MVP awards, is a member of the Baseball Hall of Fame and was named to Major League Baseball’s All-Century Team.
But you might not know that Yogi Berra may also have been the greatest financial planner who ever lived.
Here is some of Yogi’s advice that you can put to use in your personal finances:
“It ain’t over ‘til it’s over.”
I often tell you that you shouldn’t worry about how the stock market is doing momentarily. The S&P 500 might be down right now, but you’re investing for years. Don’t judge a movie by a single frame of film.
“It’s déjà vu all over again.”
We’re experiencing a market decline this year, but we’ve seen declines before. This too shall pass.
“When you come to a fork in the road, take it.”
There are so many decisions to make when creating a financial plan. Which investment strategy should you choose? How should you allocate your assets? What’s the right mix of stocks and bonds? Don’t worry that you might make the wrong decision. Sometimes making a decision is better than doing nothing.
“I didn’t really say everything I said.”
Sometimes people call me and say, “On your radio show you said …” and I’ll discover they’ve gotten it a little wrong. I know you’re busy vacuuming or driving when listening to my show. You might be reading this on your phone while chatting with a friend. So when you're taking advice from someone, make sure you understand it clearly.
“We made too many wrong mistakes.”
Did you sell low in 2008? Did you buy back in only after stocks recovered in 2014? Selling low and then buying after prices have recovered isn’t a good strategy.
“You can observe a lot by watching.”
You shouldn’t just focus on your personal history when investing. It wouldn’t make sense to say, “I bought a stock and it lost money so I’ll never buy a stock again.” It’s important to look beyond your own experiences; focus instead on history – not just your own.
“The future ain’t what it used to be.”
I cover exponential technologies a lot on my blog and radio show. Robotics, 3D printing, nanotechnology, artificial intelligence, and more, are going to change our lives in virtually every way imaginable. I’m presenting a preview of the new seminar I’ve developed on this topic in Arizona on October 10.
“It gets late early out here.”
If you haven’t started planning for retirement, you really need to get started.
“If the world were perfect, it wouldn’t be.”
Don’t worry about making every financial decision exactly, 100% correctly. No one ever does. Don’t let “paralysis of analysis” stop you from making decisions.
“If people don’t want to come out to the ballpark, nobody’s gonna stop them.”
You shouldn’t drive yourself crazy because your kids aren’t managing their personal finances as you’d like. It’s frustrating, but all you can do is give them good advice and hope that act on it.
“Nobody goes there anymore – it’s too crowded.”
Edelman Financial will do roughly 800 seminars this year and about 40,000 people will attend them to learn about topics like planning for retirement.
“Baseball is 90% mental and the other half is physical.”
It’s not enough that you work really hard; you also have to work smart. Investing money isn’t enough; you must put your money where you can get effective rates of return over long periods. That’s how wealth gets created.
“A nickel ain’t worth a dime anymore.”
We all know that inflation reduces the value of money over time.
“I knew the record would stand until it was broken.”
The Dow hit an all-time high in 2007 – and then hit another high in 2013. The Dow is always able to refer to its all-time high – until it reaches another one.
“You’ve got to be very careful if you don’t know where you’re going because you might not get there.”
You need a financial plan. You can’t expect to reach your goals if you don’t have one.
“I never blame myself when I’m not hitting. I just blame the bat and if it keeps up, I change bats.”
You probably wish you started saving sooner, or that you did this or that differently. Don’t blame yourself. Just know that you can start right now, it’s not too late. It’s time to make sure you know what your retirement goals are and that you have a plan to achieve them.
If you need to talk to someone to help figure it out, we’re always here to help.