If Tom Brady Was A Stock
We like to think of investing in el stock market 📈 for your retirement as a long game, all 4 quarters! Kind of like Tom Brady’s 🏉 career and his earning potential throughout that career.
OK, OK, we realize Tom Brady isn’t publicly traded on the NYSE but he is on the Tampa Bay Buccaneers who are playing in the big 🏈 game this year against the Kansas City Chiefs. Since so many will be tuning in to watch, we couldn’t resist using this as a long-term investment teaching moment.
OK, so between bites of chips, salsa and 🥑 guac, piensa 🤔 en esto:
If Tom Brady were stock that you bought shares of in the year 2000, he would have been valued at $864K because that’s what the New England Patriots signed 🖊️ him for when he was a rookie.
In 2002, Tom got a big 👊🏽 bump in 💵 pay, when he got a new contract for $30.52MM. Nice! You could have sold 🤑 your stock in Mr. Brady and made a very nice profit at the time. That’s great, but right about now you would be kicking 🦵🏽yourself because in 2020 Tom Brady signed a $50MM contract with the Buccaneers and you don’t get a cut of any of it ‘cause you sold your stocks in Brady way too 💸 soon.
Certain stocks are like Tom Brady, they’re the kind of stocks that you buy and hold on to for years. According to Forbes “Typically, long-term investing means five years or more, but there’s no firm definition.” And as you can see from the “if Tom Brady was a stock” example, sometimes you want to hang on to a long-term investment for way longer than 5 years in order to maximize ↗️ your earnings.
Does that mean you should only make long term investments? No, of course not! A well-rounded 💼 investment portfolio should include both short-term and long-term investments to meet your financial goals. One thing to consider when deciding on short-term vs. long-term investments is when you’ll need that money. If you’re going to need the money shortly, then maybe you don’t want to invest in a Tom Brady-esque stock with long-term growth potential and instead you want to invest in stocks that make you a profit in the short-term.
Just keep in mind that those long term Tom Brady-esque investments are a great way to set yourself up for retirement, though, so keep a lookout 👀 for them.
Tell us how you’re investing for retirement in the comments.
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