Financial Planning as a Round of Golf

Did you know that financial planning and golf have a lot in common? It’s definitely not the equipment, clothing, or location. Nope, it’s the necessity of keeping a focused mindset! In fact, iconic golfer Bobby Jones said, "Golf is mainly played in a five and a half-inch course...the space between your ears.”

I can attest to the truth of that statement. The golf course has always been my favorite place, reaching back to my high school days practicing at the Eagle Watch Golf Course after school, and my college years at Spring Hill College on a golf scholarship. Now, as the assistant coach at Blessed Trinity High School, I continue to see that golf, like financial planning, requires a specific mindset.

In particular, the values of discipline, consistency, and resilience make a round of golf absolutely similar to a life of investing and planning. Here are my top 5 reasons why.

1. Get Off the Tee (Hole 1)

The first tee shot of any round is always uncomfortable as your mind races to the holes up ahead. However, the name of the game at this point is focus. Do not let your mind spin out of control and get caught up in the weeds. Do start to execute your game plan for the round ahead. Swing your club - just do it! It’s the time for action.

First time investors often feel many of these same nervous emotions. With so many different paths and options to take, they might psyche themselves out. In this first stage of investing, identifying the purpose for investing and educating yourself will help you to take action and “Get off the tee!”

2. Establish a Rhythm (Holes 2-9)

Rhythm is huge in golf and identifying that pace early in the round will help to get you in that ever elusive “zone”. Jack Nicklaus (who, with 18 wins, holds the record for the most Major Championship victories by any professional golfer) had a pre-shot routine so consistent that it never varied by more than a couple of seconds.

Developing a cadence that includes reviewing financial goals and communicating with a financial advisor is vital to keeping the investments on track. Falling out of the rhythm can cause key information to not be relayed to the advisor or the investment profile drifting from the intended objectives.

And remember - golf is not a game that can be won early, but it can be lost early. An early round double or triple bogey can derail a score for even the best players in the world. It’s crucial not to sabotage the round early on with a hasty decision!

How do you lose the financial game early? Well, we have all seen people buy a house or car above their means or recklessly spend on other things that hold no lasting value. Early mistakes like these can do some serious long-term damage to a retirement plan.

The key is to establish good habits and stay in that rhythm.

3. Reward Your Efforts (Holes 10-15)

When you hit the back nine of the course, you now have the power to dictate how you want the rest of the round to go. If you were careful to execute well on the front 9, you are happily positioned to post a low score. If, on the other hand, you have had a slow start, it’s time to play catch-up.

In your financial planning timeline, let’s consider this stage in the “round” to be around 50 years old. This represents, on average, prime earning years, and is an important time to evaluate your investing progress. A well made plan that has been adhered to up to this point can set you up for healthy savings, with the opportunity to advance a retirement plan. Made some of those early mistakes we talked about? The best thing to do now is potentially get caught up from those early hiccups.

4. Almost home (Holes 16 & 17)

Don’t get distracted as the round winds down! My top two wandering thoughts tend to be (a) what to eat after I’m done and (b) counting up my score in my head. It’s time to bring back that focus you had at the very beginning. With energy getting lower and pressure to win the match or tournament getting higher, focus and discipline to the shot at hand are a golfer's best friend!

For many of my business owner clients this is where our succession planning takes place. It’s time to hand the reins over to their successor, and cash out on their diligent work. We have to be focused to stay on target and complete a successful transition for their personal, financial, and business life. The enemy here: a “head in the clouds” moment late in the game, which can wreck years of hard work and success. Working closely with a financial advisor is as important as ever in this part of life to get to the right destination.

5. Enjoy the Walk (Hole 18)

It’s a wrap! The 18th hole is a time to enjoy all of the hours of “work” and focus by just hitting a few more shots and shaking hands with your playing partners. I find the 18th bittersweet because the round is over and I have to leave my favorite place. Call me sentimental, but I always make sure to look back down the fairway one last time to take it all in.

The first step into retirement is all about enjoying the walk and taking the time to reflect on your many years of hard work. All those ups and downs ultimately lead to accomplishing those goals. Be proud of what you have accomplished!

A Game Plan

Would you approach a round of golf without a goal in mind that you wanted to achieve? Definitely not. Then don’t approach your finances without one either. As someone passionate about both wealth management and golf, I can tell you that a focused mindset is the way to win at either one! Wondering how to “get off the tee” of your own financial future? Contact me to get started.