Picture this: You’re huddled around the TV with friends, snacks everywhere, frantically checking your March Madness bracket as another underdog pulls off an upset. Your carefully crafted picks – based on stats, gut instincts, and maybe a little superstition – are hanging by a thread.

Now, imagine your financial plan the same way. Just like building a championship bracket, financial success comes down to strategy, preparation, and managing risk. Some investments are like top-seeded teams – steady and reliable – while others are Cinderella stories that could deliver big wins… or bust your entire plan.

Whether you’re filling out your bracket or planning for your financial future, there are some distinct parallels between making wise investment choices and experiencing the March Madness season.

 

Build a Strong Team (Diversify Your Portfolio)

In college basketball, championship teams are rarely built around just one-star player. The best teams have a balanced lineup of shooters, defenders, and playmakers—just like a well-diversified investment portfolio.

Stat to Consider:

Teams with at least four players averaging double-digit points have historically performed better in the tournament. The 2018 Villanova Wildcats, for example, had six players averaging 10+ points per game, and they dominated the competition en route to the championship.

Financial Lesson:
Just like a balanced basketball team, a strong financial portfolio includes a mix of:

• Stocks for growth
• Bonds for stability
• Real estate for diversification
• Cash for liquidity

Over-relying on one stock, one asset class, or one investment strategy is like expecting one player to carry an entire team—sooner or later, it falls apart.

 

Cinderella Stories and Underdog Investments

Every March, fans love watching Cinderella teams – the underdogs who beat the odds. Think Florida Gulf Coast in 2013, Loyola Chicago in 2018, or Saint Peter’s in 2022 – teams that upset big names and captured national attention.

Stat to Consider:

Since 1985, a No. 15 seed has upset a No. 2 seed in the first round 11 times. While rare, these upsets prove that even underappreciated teams (or investments) can shine.

Financial Lesson:
In investing, small but promising companies (small-cap stocks) or overlooked sectors can sometimes outperform well-established giants. While they may carry more risk, underdog investments can provide huge returns – just like those Cinderella teams that make a deep tournament run.

 

Avoid the Busts (Manage Risk Wisely)

For every Cinderella success story, there’s a bracket-busting failure – a heavily favored team that falls apart early. The 2018 Virginia Cavaliers, a No. 1 seed, were expected to cruise through the tournament but became the first top seed to ever lose to a No. 16 seed (UMBC).

Stat to Consider:

Since 1985, a No. 1 seed has won the NCAA tournament 64% of the time, but that means 36% of the time, another team pulls off an upset.

Financial Lesson:
Even safe bets can fail. Many people assume blue-chip stocks, real estate, or even entire sectors are untouchable, but history has shown that market crashes, recessions, and corporate scandals happen.

The key? Managing risk.

• Don’t put all your money in one investment.
• Have a game plan for downturns.
• Keep an emergency fund in place (your financial “bench players” for when things go wrong).

 

The Importance of Coaching

Even the most talented teams need a great coach to guide them. Legendary coaches like Mike Krzyzewski, Tom Izzo, and Jay Wright have led their teams to success by developing a game plan, adjusting to challenges, and keeping their players focused.

Financial Lesson:
A financial advisor plays the same role in your financial future. They help you:

• Create a long-term strategy
• Adjust when the market changes
• Keep emotions in check during market volatility

 

Survive and Advance (Long-Term Financial Planning Wins the Game)

The most successful teams in March Madness don’t panic after a bad half. They stay focused, stick to their strategy, and adjust as needed.

Stat to Consider:

From 2010 to 2023, the team that won the NCAA Championship had an average margin of victory of 11.5 points per game – a sign that consistent performance is key to long-term success.

Financial Lesson:
Long-term investing is about surviving and advancing through the ups and downs.

• Don’t panic in a market downturn.
• Stay disciplined in your approach.
• Adjust your financial strategy as life changes.

The goal isn’t to win every quarter but to win the game – retirement security, wealth accumulation, and financial independence.

 

Do You Have a Championship Game Plan?

As you’re cheering for your favorite team, take a moment to think about your financial strategy. Are you prepared for surprises? Do you have a solid lineup? Most importantly – do you have a game plan that can go the distance?

If you’re ready to put a winning financial strategy in place, let’s talk. Because just like in March Madness, the right approach can make all the difference.