Retirement Guys: Be an Olympian of InvestingWritten by Nolan Baker Mark Clair | | firstname.lastname@example.org
The Winter Games in Sochi are nearing but for many, especially the Athletes, this is the end not the beginning. The athletes, coaches and event planners have been put in hundreds, if not thousands of hours of preparation time for the 2014 Olympic Games.
It was 90 years ago, in the small town of Chamonix, France where the first Winter Games took place. The two day event featured 17 countries competing in 9 different sporting events. The Olympic Games have come a long way in almost a century. This year, in Sochi, we will watch in awe as 88 countries and an estimated 2,500 Athletes will compete over 18 days. As opening day ceremonies start this Friday, remember a lot of what makes these Athletes great can be applied to how we can become better investors.
The Technical Score is what the judges decide to determine who wins for some of the 15 games being played this year. Over the years many scandals and controversies were uncovered which has resulted in better rules and regulations. Luckily for the athletes, not only are there several judges but systems have been implemented to make scoring more unbiased and fair. Many investors also keep a Technical Score when it comes to investing by looking at their performance in comparison to the stock and bond indexes. The problem for many investors is keeping score can easily get distorted if an investor doesn’t look at similar indexes to compare results. One good website to use to see how your investments are doing is www.morningstar.com. All an investor needs to do is type in the name or the ticker symbol of their investments and the results come right up. We usually recommend to investors to look at the results over a 5 year time frame.
The Final Score in some sports, like ice hockey, is all the matters. Other times the Overall Score allows the judges to take extras like choreography, creativity, artistry, emotional and physical involvement into consideration. If you ask any Olympian who is competing in this year’s Sochi Games, most would say that their end goal would be to walk away with a gold, silver or bronze medal. It’s inevitable that the athlete wants to win. We, as investors, are competitive too. It’s natural to measure how well your investments have been performing. Others try and look at the overall picture. This requires the investor to have a well-crafted plan for tax planning, estate planning, and asset protection. We, here at the Retirement Guys, recommend using both approaches by using a well balanced investment approach that combines results with a coordinated comprehensive plan.
Beware of unstable predictions. Predications are already out concerning the Sochi 2014 Games. The experts are already saying how many medals each Country will win and where upsets may be. You name it! I bet a predication is on the Internet or the nightly news on who is expected to win. I am sure the Athletes read those predications as well, but I bet most don’t care. Instead they keep training, stay focused, and listen to their coach.
Like those predictions for the Olympic Games, this year investors will also be bombarded with investment predictions. In fact, 196 million results came up when I Googled “2014 Investment Predictions.” A major mistake investors often make is allowing that noise to drive their emotions and end up making poor investments decisions. Instead of letting those predictions get in your way to success in 2014, act like an Olympian and keep planning, stay focused, and listen to your financial coach.
To celebrate this year’s Olympics, our company has rented out the Maumee Indoor Theater on Friday, March 21st at 6:30 PM. We will be showing the movie The Miracle. This classic true show is about the 1980’s Olympics when a player turned coach, lead the American team on to beat Russia. You can request up to 4 complimentary tickets. To request tickets, call our office at 419-842-0550.
For more information about The Retirement Guys, tune in every Saturday at 1 PM on 1370 WSPD or visit www.retirementguysnetwork.com. Securities and Investment Advisory Services are offered through NEXT Financial Group Inc., Member FINRA / SIPC. NEXT Financial Group, Inc. does not provide tax or legal advice. The Retirement Guys are not an affiliate of NEXT Financial Group. The office is at 1700 Woodlands Drive, Suite 100, Maumee, OH 43537. 419-842-0550