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Retirement Planning on the Tennis Court

Financial Symphony / John Stillman
The Truth Network Radio
October 2, 2019 5:00 am

Retirement Planning on the Tennis Court

Financial Symphony / John Stillman

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October 2, 2019 5:00 am

What does tennis have to do with retirement? Probably more than you would think. We pulled three aspects to tennis that relate to retirement planning to help you understand the strategy a little better. 

1. The court is different for singles versus doubles.

2. Certain players excel on a particular playing surface.

3. Holding serve is important. 

So sit back and let us serve up some retirement analogies so you can ace your investing decisions.

Check out the full show notes for this episode by clicking here.

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Time for another episode of Mr. Stillman's opus.

I have been George alongside John Stillman, John Worley. Looking forward to today's episode because I wanted dive into your athletic past interesting we can learn. This is usually on you to put the ball like we will see what you did there. Indeed, with the topic of sports in your sport, sports guy we always try to take unique angles at financial planning and investing in retirement planning to try to make a little more sense of it for you. So today were using the sport of tennis you play tennis adult.

I did when I was in elementary school really good well so I played at this little club near my house, not a country club but just the tennis club and so they had like the youth league that we played in and so they decided it took like all you guys and 20 girls a planar club and the Pro ranked us before we went out to play against other clubs, and so that way you are number one would play the other places number one in all that well the first ranking came out for our club and I'll be danged if I wasn't the number one I guy I was in I don't know fifth grade at the time so I wasn't even mentally competing with other people's old-timer just turned out process right your best one :-) alright so still really good about myself will so that we go up we start playing all these country clubs and so I'm are number one playing the number one from Liang Lake Hickory country club and stuff and it was ugly I had girls that would beat me and I barely score point against them is bad, but hey, I was number one trusts the other summer wiring Junior tennis club impressive should put down the resume why that's the website.

Would you have any tennis in your past. You seem like more as he could recall your sport guy like that, more than like having lined up defensive end and here's the thing I got, I would say that up for pretty athletic in the sense that I can kind of pick up anything be pretty good at it and not great at anything right about a pro anything but I'm back in usually hold my own in most anything. The test was one the one things that I just could not control the speed and the trajectory of that ball to get it all just a click to clear the net and then dropped on her side and serving was always frustrating to me so great exercise. One of the toughest physically running back and forth but I think it is quick as I was a good houses competitive and frustrated with trying actually terrible attendance now because probably playing I will I quit playing a middle school because also focus on basketball and years later I get back on the tennis court will, in the meantime I started playing a lot of ping-pong and it just completely changed my swing as I get on the tennis court and hit the ball like 4 feet northerly work is also used to play ping-pong. I did play golf. So I did spend some time at the country club you growing up so cool that sort of thing is fun, but REITs were talking tennis is because today is all about tennis and how it relates to financial planning.

You might think this is a bit of a stretch but we did come up with three different items that were to make a comparison with today. So before you started on your mind.

You John Stillman, president and founder of Rosewood well find them call or text him as well. 800-545-2991 and check out his blog.

The financial be what was the was on the recent headlines you used. That was the got some attention to some commie related. You become user growing economies are gone and how can you turn away from that content.

And he has a writer's website, Rosewood I today's topic tennis my throw out a couple scenarios or couple items about tennis strategy just where the games played in years and are relates to finance this can be tough or you don't think even with your tennis background I the court is different in singles and it isn't doubles well of course the same unit is using different lines right so you get though the wider doubles alley that you get to use when you play" of unitholders people and the ways that we need more space to work with.

So it if we want to think about this in the financial planning context. Let's think about singles versus doubles as it relates to people Geico a single individual planning for retirement versus a married couple heading into retirement and the rules are basically the same. Just like in tennis the rules in singles and doubles are the same scoring is the same.

Everything is the same.

It's just the courts will different write and write out saving retirement planning. The rules of the same in that were trying to plan for the same stuff like guarding against the fear of running out of money and making sure that were not selling low or buying high in our portfolio want to make sure that were taking the right amount of risk that were doing our income planning the right way, making sure that we have paychecks community retirement. We know you want, but the court is a little different for single people versus married couples. So what I mean by that. Well as an example tax planning for couple might be different than tax planning for single person just because of the way the tax brackets are structured in a married filing jointly versus a single filer so if you have a single person who lives on. Basically $50,000 a year of income. Let's go there. Basically, the lowest tax bracket or married couple gets double that amount of income and still stays in lowest tax bracket. They can have 100,000 gross income and still be in that 12% bracket well but think about a married couple with 100,000 commutes a lot easier to make that lifestyle work because your expenses don't double just because your couple but your opportunity to have income statements and tax bracket does double so the tax planning is a lot different for a single person than it is for a married couple. On the other hand, single people might have an advantage on something like for instance long-term care planning. So if you think about a married couple if one of the two spouses need long-term care while the other spouse is still living at home so we can't sell the house out from under them to help pay for the care that spouse living home still needs income. They still have to live their life, we have to find a way to pay for that spouse who needs care without bankrupting the remaining spouse. But if you're single and you need nursing home care was a lot of stuff on the table. All of your income can go toward that your Social Security any pensions any retirement income streams you have coming in, plus all your investable assets can go toward your care, your home can be sold to pay for your care.

So it's a lot easier for a single person to address those expenses that it is for a married couple electrics so again the rules of the same The winds on the court are little bit different for single people versus couples like they did a good job explaining that makes a lot of sense to me. Next up is the playing surface. Now we think tennis given play a lot of tennis are different.

There's different court courts. There's hardcourt you got your grass you got your clay courts are all different and certain players played differently on that. So tell me how that relates to the right will exclude thing about our services right so your grass players. So Pete Sampras was great on grass in the 90s you know in Wimbledon. It seemed like every year. Steffi Graff was really good on grass. Roger Fetter is basically good everywhere but he was really good on grass credible. All three of those people. And ain't nothing but a way one Wimbledon seven times each. Yeah so they're all good on grass. I've never actually played on the grass And I can think of. By the way, and only played on clay a few times didn't much care for it, but so clay which is what they have. The French Open Raffaella Dall is really good on clay Bjorn Borg back in the day was really good on clay any fetters going on everything to so he would also be good on clay, but the doll specifically on site is best on clay compared to other things that are wondering what's think twice the French Open. He did didn't want to get the grand slam but you adults dominated so and then you have guys like Agassi Jimmy Connors. They were much better on hard courts than any other services which is weird to that one as a kid at a poster in my room of Agassi playing Wimbledon and it said mowing the lawn with a caption on humanity. What he wasn't that great on graph you really were 10 sky grown up LOL Philly for years so you know Agassi Jimmy Connors good American boys right half even though Agassi has led long-haired Persian ethnicity, but you have a group in America. They play on hard courts right Jimmy Connors won a lot of games on hard courts, never great on other services so as you sit different players did well on different surfaces.

Financial advisors are not that much different. Some of us excel in different areas so as an example, you might have advisors who truly specialize in retirement income planning ahead. That's really my sweet spot is my bread-and-butter, the overwhelming majority of my clients are 55 and up there either retired or getting close to it. Now in the last couple years we've expanded a lot more and have started working with basically no good.

The children of those clients.

People in their 20s and 30s who are just going started out getting out of debt and getting started with their investments. But you know when I first started in this business years ago I was working almost exclusively with retirees and pre-retirees, which is a much different skill set, say from somebody who specializes in something like real estate investing right or let's say you want to do a lot of trading, you would be messing with options and outputs and calls and doing a lot of daytrading. What when I can do that kind of stuff here because for my average client and not trying to get rich.

They try to make sure that they're never going to be poor is much more of a priority for them and so you have to understand what it is you're looking for with an advisor and then find somebody who's playing surface strength fits what you need.

So can we call you the Roger Fetter over time/effort is that SS is unfair, why not okay good enough.

I last topic. How tennis relates to finance you play a game of tennis holding server is important. That's what has how you and Connie control the game release control your half of those points or how does that relate and this applies to tennis players who are good for me when I was serving.

It wasn't particularly advantage score were you can. It was just if I was serving. It was just an added chance that I could double fault right so I wasn't necessarily one who is able to capitalize on the fact that I was serving but if you look at people who are actually good at tennis that are pros more often than not they win when they're serving in. That's important because when you're serving your setting the tone for that point for that game you're sort of in control of the point because they're serving so hard the person who's returning the service immediately back on their heels and inflict that person is. The server is always in the driver seat and so if somebody breaks serve. Meaning, they win a game when they weren't serving usually that gives them a leg up because you know if if you're serving you in and I'm serving I when we go back and forth and were each winning games when reserving his 44 and then suddenly you break my serve will now you're up again and you're serving again. You're about to go to games most likely so very important that you hold serve and breaks serve when you can really put in the driver seat so in the financial realm.

What does this mean well, we want to control the things we can control. We want to focus on doing the best we can with the stuff that's truly in our control and not spent a lot of time losing sleep over the things we can't control so you can't control what the stock market does.

That's out of your room of control you can control how much risk you take. So let's focus on what a stock market downturn might do to your overall plan. If you're 35. It doesn't matter if anything it's a buying opportunity for you. If you're 65 and you're retiring in a year or two we can afford for you to lose 35% of your assets. We need that money for income and so let's understand where you are and let's control the risk. Accordingly, because we can't control the stock market.

There are tons of other things you can't control. You can't control inflation. You can't control legislation that might affect tax increases down the road, but you can control where you save money you can control what you put money in a Roth versus a traditional IRA so that when you retire you taking money out of a Roth.

It don't matter what the tax rates are because you're not paying tax on that money anyway so focus on the things you can control and make the best decisions that way instead of worrying about everything else and trying to just constantly react to things going on around you that you can't control to control things you can't hold serve when it comes to your financial plan. Well John and his team can help you hold serve on your retirement game of tennis as well.

They can do so over rosewood well Also, by phone or by text at 800-545-2991 and don't forget the block. The financial be will have some show notes on the stuff as well so check that out and don't forget subscribe on Apple podcasts or your favorite podcasting app. Well John, I will have to say that you did indeed ace. This upset the see what you did there. Hopefully, this episode truly added value to your life, and wasn't just some racket background. Indeed, you can get more plans like this by subscribing to this podcast. Mr. Stillman's opus on Apple podcasts or wherever you listen to your podcast.

Things are joining us for John Stillman. I been George will talk to you next time here on the system and Carolyn went towards doing business as rosewood well amendment is a registered investment advisor. Instead of waterline the material present. It is intended to be general information and should not be construed by any consumer is the rendering of personalized investment advice

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