How Fantasy Football Is Just Like Investing in the Stock Market

How Fantasy Football is just like the Stock Market

The following is a guest post by Ben from about investing in the stock market. If you would like to write an article for Money Q&A, please visit our Guest Posting Guidelines.

investing in the stock market

A lot of us shy away from the stock market. It’s almost like we’re afraid of investing in the stock market. Sure, we know that we should invest our money, but a lot of us get nervous when it comes to doing so in the stock market. Too many ups and downs, too unpredictable.

Most of us write off our inexperience and lack of knowledge and decide to stay out of the market. However, we do spend a lot of time and energy on our fantasy football teams, and if you think about it, playing fantasy football isn’t all that different from investing in the stock market.

How Fantasy Football Is Like Investing In The Stock Market

LendEDU published the results of a very cool survey while we’re on the topic of fantasy football. Here are some of the interesting results…

  • The average season-long fantasy football player spends $286.84 on league-entry fees, while the average daily player (DraftKings, FanDuel) spends $272.52 on related fees.

  • The average player spends nearly 8 hours a week on fantasy football and 4.31 hours a week of work, or $1,186 in lost productivity if you factor in the U.S. median wage.

  • 89.6% of season-long players expect a positive ROI this year, while 92.41% of daily players expect a positive ROI. Nothing wrong with a little confidence! Can we say confidence bias?

Just like managing a good stock portfolio…

1) Depth and diversification are key. A good fantasy team is made up of a number of different players, each playing a different role. A good stock portfolio also has different stocks playing different roles. You’ll have your growth stocks (ones you expect to grow in value) and your value stocks (less price appreciation but lots of dividends). You’ve invested in different industries, just as you wouldn’t have a team full of RBs.

2) You have your core players and ones you can easily trade. Your fantasy team is made up of several core players (what up Peyton!) and then your TBD players. Some weeks you’ll pick up a new player and give them a start or two and depending on how they do, you’ll either drop or keep them. Your core players, though, are your winners.

They’ve proven themselves time and time again and you’d never trade them. A good portfolio will have your winners and then stocks that you’re testing out. Don’t be afraid to buy a couple of stocks and then trade them out when they don’t live up to your expectations.

3) Perceived value. We each learn how to notice and pick up undervalued players when we see one. It earns us ultimate bragging rights. Conversely, we’re quick to trade a player while he’s still ‘hot’ when we know he’s going nowhere but downhill. Stocks are the same way.I’m always on the lookout for quality stocks that have taken a hit by the market. Perhaps some big investor has been trash talking them, or the company made a dumb mistake. It doesn’t mean they’re not a good company – rather, just that they are a good buying opportunity for me!

Read more

4 Things Businesses Should Include in a Terms of Service Agreement

Not Sure Which Business Is Right For You?

While no one reads the terms of service agreement for many service providers—such as social media networks—creating an airtight agreement will protect your business from many future legal headaches.

What to Include in a Terms of Service Agreement

Here are four things businesses should include in a terms of service agreement.

Provide a Definition of Your Service or Product

Not Sure Which Business Is Right For You?This is something that essentially every kind of business—big or small—will want to include in its terms of service. By providing a definition of your product or service that is easy to understand, and can only be interpreted one way, you are mitigating any claim that someone was deceived by your product. In some ways, this is another form of small business insurance—as it removes ambiguity about what the customer can expect in return from your company.

Define Intellectual Property Rights

Many companies have their own intellectual property that they use to provide services to customers. Oftentimes, those customers actually produce intellectual property of their own through that proprietary service. Amazon is one example of a company that allows its customers to use its property to produce their own copyrighted materials.

If your company also operates in this way, you need to make it explicit that you maintain the rights to all your proprietary software or services. While it’s unlikely, someone might potentially try to take you to court if you don’t make it totally clear that using the service gives them no ownership over it.

Read more

How to Not Waste Your Vacation Days with a Retirement Rehearsal

Retirement Rehearsal

The following is a guest post by Greg PHELPS, CFP®, CLU®, AIF®, AAMS®, a CEFEX certified fiduciary financial advisor, speaker, author, and the creator of the Wealth Summit. Greg has his own financial planning practice at Redrock Wealth Management

Retirement Rehearsal

I came across this interesting concept the other day called the “retirement rehearsal”. Apparently, something like 50 billion dollars of vacation time goes unused – or lost – each year when people retire.

The retirement rehearsal concept is to plan years in advance of retirement to actually use those dollars to “try” being retired. It’s an interesting concept so I spent a bit of time learning more.

Over 50 billion dollars worth of vacation time is lost each year when people retire. Click To Tweet

The Retirement Rehearsal

There’s an intangibility about what retirement might look like for most people. Many people think retirement is trips to Disney World with the grandkids, traveling around in an RV, and rounds of golf every day. In reality, many retirees struggle to fill the 40 hour void left by the absence of a full-time job.

The first step in rehearsing your retirement is to make sure you have a written financial plan. The retirement rehearsal is useless if you can’t go back to a written plan and make the necessary adjustments.

Read more

5 Extra Sources of Income for Poor College Students

5 Extra Sources of Income for Poor College Students

As a college student, you’ve probably gotten used to the lifestyle of ramen noodles for dinner every night and making your laundry last as long as possible before washing it. Devoting your time to your studies can have a terrible effect on your wallet. Even if you buy college essay at a discount, you will still spend some money – professional work can cost you nothing. Essay writing platforms thrive these days for this reason – there are experts who write essays and other academic assignments. If you want to make a little extra money for more convenience and comfort, there are a few ways to get a little bit of cash without sacrificing your studies. Here are simple ways … Read more

4 Things You Should Do Immediately After Winning the Lottery

What to Do After Winning The Lottery

What to Do After Winning The LotteryWhen we hear news stories about how the lottery has surpassed the $100 million mark, it’s fun to dream about what we might do with that kind of money if we won (even if we don’t end up buying lottery tickets!). Buying a mega-mansion, vacation homes, luxurious trips around the world, private jets, and going out to fancy restaurants are typically at the top of the list, though some people decide to donate most of their winnings to causes and organizations that are near and dear to their hearts.

What You Should Do Immediately After Winning the Lottery

If your lottery dreams become a reality and you suddenly have a ton of money coming in (whether it’s $25,000 or $25 million), here are some things you should immediately do to avoid financial destruction like some lottery winners of the past:

Hire Professionals to Protect Your Funds

Hiring a certified financial planner on from the moment you find out you won should be a requirement for any lottery winner. These folks are trained to help you make important financial decisions like taking the lump sum amount or annual payments, how to invest it, how much you can/should donate to a nonprofit for maximum tax benefits, and how much your monthly budget can handle without blowing through your money too quickly.

Building a financial team should also include an accountant (you’ll definitely need some help with IRS-related concerns) and a lawyer (to help you navigate any legal concerns along the way). Yes, these folks charge quite a bit of money for their services, but you’ll be in a much better position to successfully manage your money than if you try to go it alone.

Read more

What Is Financial Independence Retire Early (FIRE) Exactly?

Top 5 Early Retirement Killers That You Need to Know

Everyone dreams of achieving financial independence from work and the possibility of retiring early to focus on pursuits that are more personally fulfilling, but few people manage to actually retire before the usual range of 62-67. Why is that? One reason is the popular movement, financial independence retire early or otherwise known simply as FIRE. A number of reasons exist as to why so many Americans fall short of their retirement goals, including a lack of retirement savings, narrow margins on income-to-debt/expense ratios that prevent folks from accumulating a sizeable savings, few outside income opportunities to supplement their meager Social Security check, entering retirement age with considerable debts to repay, etc. If you’re in your 20s, 30s, 40s, or even 50s, … Read more