Episode #10: Lessons From Space Invaders
“RETIRE WITH INTEGRITY” PODCAST
Reminisce on an 80s classic, and discover how Space Invaders could possibly relate to your retirement.
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[00:27] – What Is Space Invaders?
- Space Invaders is an arcade-style game with a simple premise. Destroy the invading aliens with your space blaster. While this might sound a bit archaic, in 1980 this was cutting edge stuff. In fact, Space Invaders was one of the first shooting video games ever made. By 1982, it had grossed about $2 billion in revenue. For reference, that’s about $7.5 billion in today’s money, and this summer, we celebrated the classic game’s 40th birthday.
[1:23] – What Does This Have To Do With Retirement?
- Think about how much money you could’ve made in the market by now had you invested the quarters you probably instead put toward playing arcade games like Space Invaders. This of course brings up the idea of opportunity cost. This is the microeconomic idea of considering the value of one choice over another. It’s so easy to sit around and think about missed investments. Think what you could’ve made had you invested in Apple or Amazon twenty years ago. Of course, hindsight is twenty-twenty, and it’s impossible to predict the market. You could’ve invested in Enron twenty years ago and lost everything. However, the point is that it’s important to be in the market. Look at the opportunity cost of not investing, and you’ll see there’s a greater cost associated with not investing. Therefore, it’s imperative to have an investment plan.
[3:24] – Your Financial Plan Is Your Business.
- Space Invaders didn’t haphazardly generate billions of dollars. They had a business plan. You should develop a business plan for your finances as well. Discuss the importance of budgeting and how you’re going to invest your money in retirement. Plan for withdrawing your money from the market, and consider what that will look like in years of economic recession. Work with your advisor to develop a comprehensive financial plan.
Space Invaders had a business. They didn't generate $2 billion from their garage. They had a bonafide business, and your financial plan needs to have a business as well. - Brian BowenTweet This
The host: Brian Bowen – Contact