With energy and excitement of footy finals in the air, and our local Diehards making it through to the grand final, I started to think about what footy can teach us when it comes to investing.
Stick to the game plan
If players get carried away in the heat of the game and move away from the plan, things can go off track. Same goes for investing. You have to have a game plan, and even when the pressure is high, you should do your best to stick to the plan.
Strong defence is just as important as your offense
There’s no point having great attacking play if you have no line of defence. When you’re building wealth you must make sure you have the right insurance so that when the unexpected happens you have something in place to protect your wealth.
Diversity is key
On the footy field you have players with different skills. From your fast wingers to your solid front-row forwards – everyone has a different role to play. When you’re building an investment portfolio look for ways to diversify so that you can play to different strengths at different times.
Get a good coach
When you’re investing, it makes sense to seek advice from advisors you trust. Also make sure you have a good training regime, by reading reputable financial newspapers and blogs, and keeping up to date with economic commentaries.
Block out the crowd noise
Sometimes all the cheering, booing and hissing from the sidelines can distract you from the set plays you have been rehearsing all season. When you are investing, don’t get carried away with what all the noisy spectators (or speculators) are doing. Stay focussed on the job you came to do and keep your eyes fixed on that try line!
Timing is everything
When you’ve got your hands securely on that ball (or shares or investments), make sure you time your off-load perfectly. Too early and you might not have given your player a clear run to the try line, too late and you might find yourself crushed by a tackle before you’ve made the pass. Timing is everything.
If you fumble, don’t be afraid to get back in the game
Not everything will always go to plan, but if you find that your stumble, get an injury or drop the ball, dust yourself off, get some good advice from your coach and advisors and then get yourself back in the game.
The information in this document is general advice only and does not constitute financial planning advice. It has been prepared without taking into account any of your individual objectives, financial solutions or needs. Before acting on this information you should consider the appropriateness of this information, having regard to your own objectives, financial situation and needs. You should seek professional advice from a qualified financial planner.