Managing your money

Golf tips to line you up for financial success

Investment lessons you can learn from the game of golf.

With golf season upon us, you may be looking for ways to enhance your game for the year ahead. In many ways, golf strategy is a lot like the principles of investing. If you have a love for the links, then you’ve already got a head start on how to manage your investments effectively.

Your golf game and investment portfolio require continued tune ups to help bring you positive results. Here are some tips to set you up for success – both on the course and in the market.

Hire a great coach

Golf is a game of precision. Your clubs, stance and swing all play a part in reaching the green. With so many elements to consider, it’s beneficial to consult a pro to make sure you have a strong foundation. Even seasoned golfers can benefit from lessons now and then for tips and tweaks to improve their performance.

Similarly, when building a financial security plan, there are multiple factors to assess to make sure it works for you. A financial security advisor can give you a primer in all the investment options available to help you achieve your financial goals. It’s always a good idea to touch base with your advisor a few times each year to keep up to date on your financial progress.

Make a game plan

Consider the course layout, terrain, roughs and other hazards you may encounter. Do you have the right club to make the shot? How much risk are you willing to take given the environment and your competition? Should you play it safe, or can you afford to take some risk? These are all important questions to answer before teeing off.

Just as you select the right club for each shot, you should ensure you pick the right types of investments to reach your goals. Once your advisor has helped you cover the basics, you can work together to create your financial plan. It's also important to consider other key factors like your tolerance for market fluctuations, debt management and your time frame for investing.

In both golf and investing, there will always be an element of unpredictability. Developing a strong foundation of the basics – and revisiting them regularly – can help you master the game.

Don’t psych yourself out

In the game of golf, you can’t be ruled by your emotions. Maybe the front nine was great, but the conditions changed on the back. Even the best laid plans can go awry when ground or weather conditions change. You may be tempted to make a bold move to compensate, but there’s no guarantee it will pay off. Don’t let one bad hole affect the next or make you change your strategy.

Like a stroke of bad luck on the golf course, changing market conditions can cause investors to make irrational decisions. Emotional investors often panic when markets fluctuate and can be tempted to make hasty decisions. A financial plan that is well diversified and suited to your personal investment style can help you manage the ups and downs of the market. Your advisor can help you review your plan so you can focus less on changes in financial markets and keep your eyes on the long game.

Reassess your strategy

What are your goals for this season? Are you looking to master a new shot or try out some more challenging courses? Perhaps you're slicing the ball too often and you need to meet with your coach to revisit the basics. Even if you've been happy with your performance, you can't always base future success on the past. People who take their golf game seriously understand the importance of continual development.

While a solid financial plan can put you on the right path, it's important to fine-tune your strategy over time. You may need to adapt your plan as your goals and time horizon change. Maybe you had more disposable income when you started your portfolio, but now you're starting a family. Perhaps you're preparing for retirement and are starting to consider your options for creating guaranteed income. Whatever your needs, your advisor can help steer you in the right direction towards your financial goals.

In both golf and investing, there will always be an element of unpredictability. Developing a strong foundation of the basics – and revisiting them regularly – can help you master the game.

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The information provided is based on current laws, regulations and other rules applicable to Canadian residents. It is accurate to the best of our knowledge as of the date of publication. Rules and their interpretation may change, affecting the accuracy of the information. The information provided is general in nature, and should not be relied upon as a substitute for advice in any specific situation. For specific situations, advice should be obtained from the appropriate legal, accounting, tax or other professional advisors.