Planning Briefs

5 Traits Investors Can Pick Up From Derek Jeter

Published Wednesday, October 8, 2014 at: 7:00 AM EDT

Derek Jeter, the iconic star of the New York Yankees, retired in 2014 after 20 years in the major leagues. Many attributes displayed by Jeter during his baseball career translate to the investment arena. For example:

1. Don't try to hit home runs. If you're trying to make a killing in the stock market, you're more likely to strike out than connect. Instead of "swinging for the fences," aim for solid singles up the middle.

2. Be a leader. Don't automatically follow the rest of the crowd. The Yankee captain set the tone for his team. Similarly, you should build your investment plan according to your personal circumstances.

3. Stay balanced at the plate. Unlike some of baseball's sluggers, Jeter's balanced approach made it difficult to get him out. Through asset allocation and diversification, you may be able to reduce investment risks. Also, remain flexible enough to make adjustments when they're needed.

4. Keep an even keel. Jeter didn't wilt under the pressure of the playoffs and World Series. It's important to stay cool, calm, and collected during the inevitable ups and downs of the stock market.

5. Plan ahead for a comfortable retirement. Jeter was able to go out in a blaze of glory on his own terms. If you stick to your investment principles, you have a better shot of achieving your own retirement goals.

This article was written by a professional financial journalist for Preferred NY Financial Group,LLC and is not intended as legal or investment advice.

An individual retirement account (IRA) allows individuals to direct pretax incom, up to specific annual limits, toward retirements that can grow tax-deferred (no capital gains or dividend income is taxed). Individual taxpayers are allowed to contribute 100% of compensation up to a specified maximum dollar amount to their Tranditional IRA. Contributions to the Tranditional IRA may be tax-deductible depending on the taxpayer's income, tax-filling status and other factors. Taxed must be paid upon withdrawal of any deducted contributions plus earnings and on the earnings from your non-deducted contributions. Prior to age 59%, distributions may be taken for certain reasons without incurring a 10 percent penalty on earnings. None of the information in this document should be considered tax or legal advice. Please consult with your legal or tax advisor for more information concerning your individual situation.

Contributions to a Roth IRA are not tax deductible and these is no mandatory distribution age. All earnings and principal are tax free if rules and regulations are followed. Eligibility for a Roth account depends on income. Principal contributions can be withdrawn any time without penalty (subject to some minimal conditions).