Here at Approach Retirement Advisors, we’re big college football fans (although to keep things neutral, we will not disclose who we’re rooting for).

As we start the college football season, we can see some parallels between how our favorite teams operate and how we hope our clients think about financial planning strategies. Here are a few things that come to mind.

The Fundamentals: Consistency is Key

In both financial planning and college football, the fundamentals don’t change. Whether you’re watching a powerhouse like Alabama or a rising underdog, the basic principles of the game—blocking, tackling, and ball control—are always critical to success. No team is winning championships without mastering these basics.

Similarly, when it comes to financial planning, the core principles—budgeting, saving, investing, and managing risk—are the bedrock of any successful strategy. But as we know, football games aren’t won by following a rigid, one-size-fits-all playbook. Coaches are constantly adjusting for new opponents, injuries, and changing weather conditions. In the same way, your financial plan must adapt to market shifts, personal life changes, and evolving goals.

Failing to Adapt: The Risk of Sticking with Small Cap and Value

One of the key aspects of a winning strategy in both football and financial planning is knowing when to adjust. This is where rebalancing your financial plan comes in. You could have a solid game plan in place, but failing to adjust for new conditions could leave you behind.

Take, for instance, small-cap and value stocks. For years, investors may have seen small-cap and value stocks as essential components of their portfolios, offering growth potential and diversification. However, just like a football coach who sticks to a running game even when it’s clear the defense has adapted, an investor who refuses to rebalance could see diminishing returns.

The financial markets are like the changing defenses of an opposing team—sometimes small-cap and value stocks underperform. In recent years, for example, large-cap growth stocks have significantly outpaced their small-cap and value counterparts. Failing to recognize these shifts and adapt your strategy can limit your portfolio’s potential, just as sticking with the wrong offensive plan can cost a team the game.

Rebalancing: Making Halftime Adjustments

In college football, halftime is when coaches gather their players, review the first half, and make necessary adjustments to the game plan. They don’t throw out the fundamentals but fine-tune their strategy based on what’s happening on the field. Rebalancing your financial portfolio works much the same way.

Rebalancing is a critical process where you assess your portfolio’s current allocation and adjust it to realign with your long-term goals. Over time, some asset classes will outperform, while others may lag. Without rebalancing, you might find your portfolio overexposed to one sector or type of asset, which could increase risk.

For instance, if your portfolio was initially 70% large-cap stocks and 30% small-cap, but large-cap stocks outperformed for several years, you could end up with an 80% allocation to large-cap. While this may seem like a good thing during the growth phase, if the market suddenly turns, you could face significant losses. Rebalancing allows you to take some of the gains from the overperforming asset class and reinvest in underperforming ones, keeping your risk profile in check.

The Importance of Flexibility in Both Worlds

As Nick Saban said in reference to Ohio State and their head coach, “You guys keep talking about a $20 million roster. But if you don’t pay the right guys, you’ll be [expletive] out of luck.”

The same could be said about financial planning.

Just like in football, where a rigid, unchanging game plan can lead to losses, a financial plan that’s never rebalanced or adjusted to market conditions can leave you vulnerable. The fundamentals—whether they’re blocking and tackling or saving and investing—remain the same. However, the ability to adapt and make mid-game adjustments is what separates good teams from great ones and successful investors from those who struggle.

Let’s have a conversation about rebalancing your financial plan and making sure your strategy is as adaptable as a championship football team. CLICK HERE to make an appointment.