3 Ways Investing is like Golf
As many of you know, I enjoy going to the Colonial PGA Golf Tournament in Fort Worth every year. Some years I go for more days and watch it unfold. However, this year I was only able to go Saturday and Sunday. Some of you may know that the tournament has changed names a few times over the years. This year, it was the Fort Worth Invitational. It is always “The Colonial” to me.
As I was walking between holes, I came up with the idea for this writing. I came up with several, but I limited this writing to these three. There are certainly more. Please feel free to comment back to me about the ones you envision as well as other sports analogies. Now, let’s get going!
In golf, you step up to the tee box and you have a goal; to get the ball to the green and into that little hole. Most courses have a drawing of the destination from the tee to the green. That way you know where you are along the way. Each shot from the tee to the green is in search of that goal.
In investing, you need to have goals as well. The clearer that vision is of that goal, the more likely you can determine where you are on the journey and what “shots” you need to make along the way. The best goals are those that also say why you want to reach that goal.
You could have a goal as easy as this: “I would like to have an investment portfolio that would produce $50,000 a year to supplement my retirement. With that money, I will be able to enjoy my life, care for family and my community and maybe play a round of golf when I want.”
When a golfer takes to the course, they have a bag of many different clubs for many different shots. Could you imagine someone playing an entire game with one club? I cannot.
Most will have a club called a driver that they use on the tee box. Then, depending on where that shot lands, they have various “irons” that they use. If they land in a hazard, then they have special clubs for those shots. Finally, on the green, they use a putter to finish the hole.
In the investment world, we use a variety of “asset classes” instead of clubs. Alternatives, Bonds, Cash and Stocks (The ABCs of Investing) are used in various mixes to try and help smooth out the investment journey and account for the “hazards” (risks) along the way.
In order to play their best game of golf, most will take lessons and seek instructions. The pros all have caddies who have charted the course and help with club selection. This is all so that the pro can focus on one thing: The Goal
Investing as well takes coaching and advice. A Trusted Adviser can help you navigate the course of your investment journey. They can also help you select the best asset classes to use and explain why they make sense to your personal journey.
In both golf and investing, you must get started. While you may not need to play golf, you will need to review your financial plan and make sure it is moving you toward your goals. That is where I can help you.
As your Trusted Adviser, I want to help you select the solution that makes sense for you. In golf, you play your game. It is the same in the investment world. I hope you will take a moment to contact me and review your goals and the path you are on to move toward them.