A Pre-Season (Financial) Checklist for Coaches
July 26, 2022
Thanks to the pandemic, it was two years in the making, but it seems like most coaches at all levels of the game had a “back to normal” off-season routine. Job changes, recruiting travel, Spring practice, scouting, the NFL Draft, minicamps, recruiting visits, team workouts, and hopefully some family time have filled up your calendars. And quite a few of you have likely built up your hotel and airline rewards accounts making up for lost time.
After all of that, we hope you and your staffs are recharged and are ready for a great 2022 season. In this article, we are going to outline a few items related to your financial planning that you certainly want to have in order before the long days of preseason camp and the season get under way.
What Route Are You Running?
There may be no better time than now to re-assess your financial plan to see if you are on track to meet your goals. With the extreme volatility in the investment markets so far in 2022 and the presumed loss in value of your investment accounts, you may find that you are off track to meet your retirement savings goals or to generate enough income to live on when you retire. Your outlook may look much different than it did just six months ago.
You can reach out to a Financial Advisor who can help you to compile a report showing how your investment accounts and income sources can combine to form your retirement plan. Then, you can determine what, if any, adjustments need to be made to get headed in the right direction.
Pass Along a Pay Raise
If you are fortunate enough to have earned a pay raise or a promotion over the off-season, it may be a good time to increase your payroll deferral or savings rate into your employer-sponsored 401(k) or 403(b) plan and any other investment accounts you may have.
Additionally, while it is extremely difficult to predict a market bottom (or top), now may be a good time to add to investment accounts that have lost some of their value when appropriate. Increasing your savings rate may allow you to get back on track to achieve your long-term goals after market levels have come off of their all-time highs achieved very early in 2022.
Catch All of the “Free Money”
Over the years, we have found that many retirement savers are not reaping the full benefits of their employer-sponsored 401(k) or 403(b) plans. The simple way to “maximize” your benefits offering is to contribute a percentage of your pay to at least get the full match or contribution from your employer. For example, if your employer contributes a match on up to 5% of your salary, be sure to contribute at least 5% of your own pay. If you contribute 4% and your employer then only contributes 4%, you are only hurting yourself. A combined savings rate of 8% is actually 20% less than a combined savings rate of 10%.
More specifically for coaches who have gone from one university to another this offseason, we urge you to make sure that you are eligible to participate in the employer-sponsored plan as soon as possible because we have found those plans to be fairly generous in their contribution. If you look at your paystub or payroll site and determine that you are not deferring your own salary and are not receiving the full university contribution, you need to check with your Human Resources department to find out why. Furthermore, you may find that you can get a waiver proving “continuous service” from one school to another, and, thus, speeding up your eligibility to save your own dollars and also get a benefit from the university sooner than you thought.
Are You Calling the Right Plays?
One important item to address regarding your investment management before immersing yourself into the upcoming season and all that comes with it is to make sure your investment accounts are allocated into the most appropriate asset classes and investment solutions for your personal plan. This is the equivalent of having the best players in position to succeed on the football field.
Are you using the optimal funds in your 401(k) or 403(b) plans to give you the best chance for success considering both risks and potential returns? Are all of your outside investment accounts positioned properly for this stage of the economic and investment market cycles given the uncertain economy and extreme volatility that have dominated the headlines in 2022?
Team Meetings
Just like you call your staffs and players together before the season starts, we suggest that you also contact the members of your financial team before the season to outline expectations and to make any necessary adjustments. This may mean reaching out to your tax advisor to assess any strategies to deploy as the second half of the year gets started. This may entail changing withholdings on your payroll or capturing losses in your non-qualified investment accounts to help offset future gains.
This may mean double-checking your beneficiaries on your investment accounts and life insurance policies in the event that you have had a change in the make-up of your family in the off-season.
And we certainly suggest meeting with your Financial Advisor to go through all of the items presented in this checklist before you return to 14- or 16-hour work days that are seemingly required to be successful in your profession.
Just like your players rely on you for direction and guidance to be the best they can be, we are happy to help you and your families be as prepared as possible for the financial planning side of your unique and demanding lifestyle. Please do not hesitate to contact us at [email protected] or directly at (502) 394-4094. We are happy to help you like we have helped and continue to help other coaches and families in similar situations.
Keith Norris
Matt Kuerzi
About the Authors
Keith Norris, First Vice President and Financial Advisor, and Matt Kuerzi, Vice President and Financial Advisor, are co-founders of The Derby City Group at Morgan Stanley in Louisville, Kentucky. They have combined over 40 years of experience helping families with their financial planning (1). In 2019, Matt was recognized by Forbes in their first ever list of “Best-In-State Next-Gen Advisors”. He can be reached directly at (502) 394-4094 or [email protected].
Branch address: 4969 U.S. Highway 42, Suite 1200, Louisville, KY 40222
(1) Keith Norris, First Vice President, Financial Advisor, experienced in the financial services industry since 1997. Matt Kuerzi, Vice President, Financial Advisor, experienced in the financial services industry since 2002.
The information contained in this article is not a solicitation to purchase or sell investments. Any information presented is general in nature and not intended to provide individually tailored investment advice. The strategies and/or investments referenced may not be appropriate for all investors as the appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives. Investing involves risks and there is always the potential of losing money when you invest.
Tax laws are complex and subject to change. Morgan Stanley Smith Barney LLC (“Morgan Stanley”), its affiliates and Morgan Stanley Financial Advisors and Private Wealth Advisors do not provide tax or legal advice and are not “fiduciaries” (under the Investment Advisers Act of 1940, ERISA, the Internal Revenue Code or otherwise) with respect to the services or activities described herein except as otherwise provided in writing by Morgan Stanley and/or as described at www.morganstanley.com/disclosures/dol. Individuals are encouraged to consult their tax and legal advisors (a) before establishing a retirement plan or account, and (b) regarding any potential tax, ERISA and related consequences of any investments made under such plan or account.
Source: Forbes.com (July, 2021). Top Next-Gen Wealth Advisors. SHOOK considered advisors born in 1981 or later with a minimum 4 years as an advisor. Advisors have: built their own practices and lead their teams; joined teams and are viewed as future leadership; or a combination of both. Ranking algorithm is based on qualitative measures: telephone and in-person interviews, client retention, industry experience, credentials, review of compliance records, firm nominations; and quantitative criteria, such as: assets under management and revenue generated for their firms. Investment performance is not a criterion because client objectives and risk tolerances vary, and advisors rarely have audited performance reports. Rankings are based on the opinions of SHOOK Research, LLC, and are not indicative of future performance or representative of any one client’s experience. Neither Morgan Stanley Smith Barney LLC nor its Financial Advisors or Private Wealth Advisors pay a fee to Forbes or SHOOK Research in exchange for the ranking. For more information, see www.SHOOKresearch.com.
Asset Allocation does not assure a profit or protect against loss in declining financial markets.
The views expressed herein are those of the author and do not necessarily reflect the views of Morgan Stanley Wealth Management or its affiliates. All opinions are subject to change without notice. Neither the information provided nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Past performance is no guarantee of future results.
Morgan Stanley Smith Barney LLC offers a wide array of brokerage and advisory services to its clients, each of which may create a different type of relationship with different obligations to you. Please visit us at http://www.morganstanleyindividual.com or consult with your Financial Advisor to understand these differences.
Morgan Stanley Smith Barney LLC. Member SIPC.
CRC 4841404 7/2022
For more information about the AFCA, visit www.AFCA.com. For more interesting articles, check out The Insider and subscribe to our weekly email.
If you are interested in more in-depth articles and videos, please become an AFCA member. You can find out more information about membership and specific member benefits on the AFCA Membership Overview page. If you are ready to join, please fill out the AFCA Membership Application.
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Thanks to the pandemic, it was two years in the making, but it seems like most coaches at all levels of the game had a “back to normal” off-season routine. Job changes, recruiting travel, Spring practice, scouting, the NFL Draft, minicamps, recruiting visits, team workouts, and hopefully some family time have filled up your calendars. And quite a few of you have likely built up your hotel and airline rewards accounts making up for lost time.
After all of that, we hope you and your staffs are recharged and are ready for a great 2022 season. In this article, we are going to outline a few items related to your financial planning that you certainly want to have in order before the long days of preseason camp and the season get under way.
What Route Are You Running?
There may be no better time than now to re-assess your financial plan to see if you are on track to meet your goals. With the extreme volatility in the investment markets so far in 2022 and the presumed loss in value of your investment accounts, you may find that you are off track to meet your retirement savings goals or to generate enough income to live on when you retire. Your outlook may look much different than it did just six months ago.
You can reach out to a Financial Advisor who can help you to compile a report showing how your investment accounts and income sources can combine to form your retirement plan. Then, you can determine what, if any, adjustments need to be made to get headed in the right direction.
Pass Along a Pay Raise
If you are fortunate enough to have earned a pay raise or a promotion over the off-season, it may be a good time to increase your payroll deferral or savings rate into your employer-sponsored 401(k) or 403(b) plan and any other investment accounts you may have.
Additionally, while it is extremely difficult to predict a market bottom (or top), now may be a good time to add to investment accounts that have lost some of their value when appropriate. Increasing your savings rate may allow you to get back on track to achieve your long-term goals after market levels have come off of their all-time highs achieved very early in 2022.
Catch All of the “Free Money”
Over the years, we have found that many retirement savers are not reaping the full benefits of their employer-sponsored 401(k) or 403(b) plans. The simple way to “maximize” your benefits offering is to contribute a percentage of your pay to at least get the full match or contribution from your employer. For example, if your employer contributes a match on up to 5% of your salary, be sure to contribute at least 5% of your own pay. If you contribute 4% and your employer then only contributes 4%, you are only hurting yourself. A combined savings rate of 8% is actually 20% less than a combined savings rate of 10%.
More specifically for coaches who have gone from one university to another this offseason, we urge you to make sure that you are eligible to participate in the employer-sponsored plan as soon as possible because we have found those plans to be fairly generous in their contribution. If you look at your paystub or payroll site and determine that you are not deferring your own salary and are not receiving the full university contribution, you need to check with your Human Resources department to find out why. Furthermore, you may find that you can get a waiver proving “continuous service” from one school to another, and, thus, speeding up your eligibility to save your own dollars and also get a benefit from the university sooner than you thought.
Are You Calling the Right Plays?
One important item to address regarding your investment management before immersing yourself into the upcoming season and all that comes with it is to make sure your investment accounts are allocated into the most appropriate asset classes and investment solutions for your personal plan. This is the equivalent of having the best players in position to succeed on the football field.
Are you using the optimal funds in your 401(k) or 403(b) plans to give you the best chance for success considering both risks and potential returns? Are all of your outside investment accounts positioned properly for this stage of the economic and investment market cycles given the uncertain economy and extreme volatility that have dominated the headlines in 2022?
Team Meetings
Just like you call your staffs and players together before the season starts, we suggest that you also contact the members of your financial team before the season to outline expectations and to make any necessary adjustments. This may mean reaching out to your tax advisor to assess any strategies to deploy as the second half of the year gets started. This may entail changing withholdings on your payroll or capturing losses in your non-qualified investment accounts to help offset future gains.
This may mean double-checking your beneficiaries on your investment accounts and life insurance policies in the event that you have had a change in the make-up of your family in the off-season.
And we certainly suggest meeting with your Financial Advisor to go through all of the items presented in this checklist before you return to 14- or 16-hour work days that are seemingly required to be successful in your profession.
Just like your players rely on you for direction and guidance to be the best they can be, we are happy to help you and your families be as prepared as possible for the financial planning side of your unique and demanding lifestyle. Please do not hesitate to contact us at [email protected] or directly at (502) 394-4094. We are happy to help you like we have helped and continue to help other coaches and families in similar situations.
|
Keith Norris |
Matt Kuerzi |
About the Authors
Keith Norris, First Vice President and Financial Advisor, and Matt Kuerzi, Vice President and Financial Advisor, are co-founders of The Derby City Group at Morgan Stanley in Louisville, Kentucky. They have combined over 40 years of experience helping families with their financial planning (1). In 2019, Matt was recognized by Forbes in their first ever list of “Best-In-State Next-Gen Advisors”. He can be reached directly at (502) 394-4094 or [email protected].
Branch address: 4969 U.S. Highway 42, Suite 1200, Louisville, KY 40222
(1) Keith Norris, First Vice President, Financial Advisor, experienced in the financial services industry since 1997. Matt Kuerzi, Vice President, Financial Advisor, experienced in the financial services industry since 2002.
The information contained in this article is not a solicitation to purchase or sell investments. Any information presented is general in nature and not intended to provide individually tailored investment advice. The strategies and/or investments referenced may not be appropriate for all investors as the appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives. Investing involves risks and there is always the potential of losing money when you invest.
Tax laws are complex and subject to change. Morgan Stanley Smith Barney LLC (“Morgan Stanley”), its affiliates and Morgan Stanley Financial Advisors and Private Wealth Advisors do not provide tax or legal advice and are not “fiduciaries” (under the Investment Advisers Act of 1940, ERISA, the Internal Revenue Code or otherwise) with respect to the services or activities described herein except as otherwise provided in writing by Morgan Stanley and/or as described at www.morganstanley.com/disclosures/dol. Individuals are encouraged to consult their tax and legal advisors (a) before establishing a retirement plan or account, and (b) regarding any potential tax, ERISA and related consequences of any investments made under such plan or account.
Source: Forbes.com (July, 2021). Top Next-Gen Wealth Advisors. SHOOK considered advisors born in 1981 or later with a minimum 4 years as an advisor. Advisors have: built their own practices and lead their teams; joined teams and are viewed as future leadership; or a combination of both. Ranking algorithm is based on qualitative measures: telephone and in-person interviews, client retention, industry experience, credentials, review of compliance records, firm nominations; and quantitative criteria, such as: assets under management and revenue generated for their firms. Investment performance is not a criterion because client objectives and risk tolerances vary, and advisors rarely have audited performance reports. Rankings are based on the opinions of SHOOK Research, LLC, and are not indicative of future performance or representative of any one client’s experience. Neither Morgan Stanley Smith Barney LLC nor its Financial Advisors or Private Wealth Advisors pay a fee to Forbes or SHOOK Research in exchange for the ranking. For more information, see www.SHOOKresearch.com.
Asset Allocation does not assure a profit or protect against loss in declining financial markets.
The views expressed herein are those of the author and do not necessarily reflect the views of Morgan Stanley Wealth Management or its affiliates. All opinions are subject to change without notice. Neither the information provided nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Past performance is no guarantee of future results.
Morgan Stanley Smith Barney LLC offers a wide array of brokerage and advisory services to its clients, each of which may create a different type of relationship with different obligations to you. Please visit us at http://www.morganstanleyindividual.com or consult with your Financial Advisor to understand these differences.
Morgan Stanley Smith Barney LLC. Member SIPC.
CRC 4841404 7/2022
For more information about the AFCA, visit www.AFCA.com. For more interesting articles, check out The Insider and subscribe to our weekly email.
If you are interested in more in-depth articles and videos, please become an AFCA member. You can find out more information about membership and specific member benefits on the AFCA Membership Overview page. If you are ready to join, please fill out the AFCA Membership Application.
