I grew up in a sports-loving household – playing sports and watching sports was a large part of my youth. It should not be surprising that many of my key life lessons have been learned through sports analogies. As I watch Miguel Cabrera -- one of the greatest hitters in Major League Baseball -- I can’t help but notice how investors might learn from three of his key skills:
- Always keep your eye on the ball – Remember that your investments are tools to get you to your planning goals; don’t let the ups and downs of the market cause you to lose sight of your long-term goals.
- Swing for a base hit – Keep your investment strategy balanced and stick to the fundamentals. Taking big “swings” with trendy investment vehicles or making big shifts in your allocations may put you at risk for striking out.
- Hit for average – The goal of your investment portfolio should be to return what is needed to reach your financial planning goals within your tolerance for risk. Maintaining a moderate, but positive, average return over your financial life can get you farther than those who try to swing for the fences, but strike out more times than not.
As you are watching your favorite baseball team this season, keep in mind that the best hitters, like the best investors, stick to the fundamentals. And don’t forget, your financial planner can be your most valuable hitting coach.
Sandra Adams, CFP® is a Financial Planner at Center for Financial Planning, Inc. Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In 2012 and 2013, Sandy was named to the Five Star Wealth Managers list in Detroit Hour magazine. In addition to her frequent contributions to Money Centered, she is regularly quoted in national media publications such as The Wall Street Journal, Research Magazine and Journal of Financial Planning.
Five Star Award is based on advisor being credentialed as an investment advisory representative (IAR), a FINRA registered representative, a CPA or a licensed attorney, including education and professional designations, actively employed in the industry for five years, favorable regulatory and complaint history review, fulfillment of firm review based on internal firm standards, accepting new clients, one- and five-year client retention rates, non-institutional discretionary and/or non-discretionary client assets administered, number of client households served.
Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute investment advice. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Any opinions are those of Center for Financial Planning, inc., and not necessarily those of RJFS or Raymond James. Investing involves risk, and investors may incur a profit or a loss.