Ben McAdoo, the New York Giants, & Your Investments – Transcript
Tom Mullooly: In episode 69, we’re going to talk about how McAdoo has killed sports in New York and how you shouldn’t do the same thing with your investments.
Welcome to the Mullooly Asset show. I’m your host, Tom Mullooly. This is episode number 69, where we talk about the death of New York sports or the death of the New York Giants.
I was a young college student when I saw Joe Pisarcik try to hand off the ball to Larry Csonka, and Herman Edwards picked it up when all they had to do was kneel down and ran the opposite way for a touchdown. Eagles beat the Giants. That game led to tearing apart the entire game plan for the Giants, all the way into upper management. It set them on a really nice course for the next 30 years.
We may be at a similar turning point with the Giants right now. They’ve benched Eli Manning, who, if you’ve read anything lately about the news, he hasn’t missed a start since 2004, 210 straight games, two Super Bowl rings, and just an all-around good guy. But he is going to take the blame for the Giants’ terrible season.
I read a tweet a couple of days ago that said McAdoo is the reason behind all of the problems with New York sports. I tweeted back, “Are you talking about Bob McAdoo from the Knicks in the 1970s, or are you talking about Ben?” It’s been years and years and years since we’ve seen such a catastrophe.
But at Mullooly Asset Management, we’ve seen catastrophes walk into our door almost every week. People come in, and they were working with an advisor. They were working with a broker. They had money in a hedge fund. They were in some crazy investment or mutual fund where the person calling the shots decided to throw a Hail Mary pass to either try and catch up with the rest of the market or do something to goose the returns. This is a mistake.
One of the things that we talk about when we sit down with clients is where do you need to be? It’s really sexy to talk about beating the S&P this year or last year, but the reality is what we’re trying to do for most of our clients when it comes to retirement is figure out how much income are you going to need. We try and figure out what your pension’s going to be. We’re trying to figure out how much social security you’re going to get.
Then we try and estimate what your expenses are going to be. That’s a hard thing to do, because everything that you buy today is going to cost more in the future. We have to try and put a ballpark number on this, but we’re trying to come up with how much income do you need from your investments to cover the gap between what you get from your pension, social security, other sources of income. How much are you going to need to fill that gap?
Then what we do is we take that number, and we back into it using 3%, maybe 4%, and we come up with a number. That number is the goal that we should be working together. We build a plan, and the worst thing that you can do is deviate from the plan.
As a Giant fan, I’m ticked off at Ben McAdoo. I suspect he’s going to get fired any moment (See Show Notes). I hope he does. It’s terrible to say I hope someone loses their job, but he has deviated from the plan. Eli Manning is owed $20 million. Tim, is that right? He’s owed $20 million over the next two years. How can they not commit to this guy?
I don’t really understand what the new plan is. The old plan seemed to be working just fine. Just like in the market, you’re going to have years where you outperform the S&P or outperform the market averages. Then there’s going to be years where you under-perform the averages. It doesn’t matter from year to year what those returns are. The main thing is, have we put together a plan that’s going to land the airplane where you want it when you need that money? Don’t ever forget that.
I wish I could send this video to the folks up at MetLife Stadium so they remember there’s a plan behind this. Go back to your plan. Make sure it’s working.
We’ll see you in episode 70.
If you would like a PDF version of this transcript, please follow this link for a download!
...And We Deliver!
Get our updates delivered right to your inbox.
Sign up and get a copy of our report: The Eight Big Mistakes Many Investors Make.