A Financial Planner & a Gold Caddie – Surprise Common Ground
We’re into March and the golfing season is getting underway.
The Masters, my favourite tournament, is next month.
Have you ever heard the analogy:
‘A financial planner is in many ways similar to a golf caddie’
Have you ever wondered why a tour pro elite golfer requires a caddie?
A tour pro like Tiger Woods, Rory McIlroy or Dustin Johnson.
Why, someone who is one of the very best in the world at what they do, do they need someone alongside them?
Obviously, the caddie does more than just carry a bag, take out the pin or tell the boisterous drunk in the crowd or the naughty photographer off.
As a keen golfer, I love the analogy.
The two roles are entirely relatable yet operate in completely different industries.
So what does a caddie do that is relatable to a financial planner?
What is a golf caddies role?
First, let’s look at what a tour pros caddie actually does.
They don’t just carry the bag.
On the course, in the heat of battle, they play many roles.
Yes, the main job may be carrying the bag, cleaning the clubs, being prepared.
Clearly, the simple things.
However, they also find themselves in the role of advisor, psychologist, confidante.
Without a doubt providing moral and mental support to their tour pro.
Prior to a tournament, they will walk the course.
Calculate yardages, identify layup positions, good & bad miss areas, factor in weather conditions and read green breaks to name a few jobs.
Importantly they gather information to help the player in the tournament.
A player can be unsure of what club to hit or in between clubs, they turn to their caddie.
If they are in contention to win, a caddie will unquestionably try to calm the adrenaline.
Alternatively, if they are struggling, the caddie tries to get them to remain positive.
Caddies are very knowledgeable and carry a wealth of wisdom.
Unquestionably, more than just bag and club carrying.
Great partnerships
Without a doubt, down the years we’ve seen some great, and at times entertaining partnerships.
Tiger Woods and Steve Williams.
Who could forget that shot at the 16th in the 2005 Masters, the celebration!
More recently Joe LaCava with Tiger.
Dustin Johnson and his brother Austin, look at how they read greens.
Phil Mickelson and Jim ‘Bones’ Mackay – a 25-year partnership, 5 majors.
Currently, my favourite golfer of the present time, Jordan Speith and Michael Grellar.
Do a Google search for their conversations.
Brooks Koepka and Ricky Elliott.
Indeed, I could provide a lot more.
However, all of the above relationships, despite the different personalities, carry a few consistent ingredients.
Mutual trust and respect.
With TV coverage the way it is today, listen to the conversations between caddie and player.
It can be entertaining and insightful into the role the caddie plays.
Why a financial planner is relatable to a top caddie
First of all, the stuff we do.
We update the portfolio balances and track performance.
The simple things.
We stay current on regulatory issues and continuous professional development.
Inflation and economic expectations, taxation changes, stock markets.
Importantly, despite what some think, we’re knowledgeable, very. Years of experience and study have seen to that!
We consider risk management and highlight risks.
Undoubtedly, risks that can and should be eliminated with financial protection.
Without a doubt, I find that conversations with clients around risk management can unearth what’s important to them.
Clearly, life is never straightforward.
We’ve all been thrown curveballs.
We all know someone who has been thrown a curveball like a serious health issue, accident or injury, a job loss.
Or when you’re ball goes into the trees and the stock market drops. Just like the past two months.
This in particular can cause your emotions to take over.
Importantly, we then provide moral and mental support.
A level of confidence.
We keep our clients focused on their goals, the big picture.
Acting as the circuit breaker when one wants to make an emotional decision about their pensions or investments.
When markets are good, we calm the adrenaline.
It’s not going to go on forever.
Leading fund manager Vanguard has quantified an advisor’s value as approximately 3% in net returns.
As a financial planner – why we tell you what we tell you
Historically, and correctly, financial advisors can carry negative connotations.
In the past, it was seen as an industry to make money for one person only, the advisor.
In some ways it still is, depending on who you deal with.
For example, large corporate companies where their advisors have large sales targets.
A conflict of interest.
Or any company that advertises advisor roles as sales roles.
Sales roles create conflicts of interest. What’s best for the client versus what’s best for the advisor’s bonus package and the managers in the company.
Slowly but surely the profession is changing in Ireland.
There are really good forward-thinking bodies like the Society of Financial Planners in Ireland, the Financial Planning Standards Board.
As members, we are of the same view, client-focused.
As an example, when investment markets get rocky, we take time, you will hear things from me like:
‘When investing we have to focus on the long term.’
‘It’s important not to solely focus on the past 5 days or 8 weeks.’
‘The current volatility will pass, it doesn’t feel like it but it will.’
‘Investing is simple, but not easy.’
These are absolutely not phrases pulled out of the sky to make anyone feel better.
These are delivered through years of experience, education, ongoing research and analysis. Good advisors know how this works.
Much like a mechanic knows how to fix your car.
Or a golf caddie can give an objective viewpoint to his tour pro.
Why one needs to work with a financial planner or get advice
You may be one of the many who think ‘I can manage my finances myself – I don’t need a financial planner or advice’.
I have absolutely no doubt you can manage part of your finances fine by yourself.
In fact, a lot of clients who come to us definitely have a lot of good going on.
It’s more just about getting stuff more organised, efficient and managing risks.
However, I also have absolutely no doubt you can’t 100% plan the full picture correctly.
You can’t optimize your finances fully by yourself.
That’s not a criticism, it’s just not your job.
It is fact we are all biased when it comes to our own money.
Or when we think of our health, it’ll never happen to me.
It’s a bias in our brain.
This is why I outsource my own family’s financial planning, as this bias, as fact, can take over.
It’s why we all need an objective view.
Trying to carry your own bag, ie 100% making your own saving, investment and financial planning decisions, without an objective view, is not a good idea.
Summary
We realise we are not talking about golf caddying.
We are talking about our client’s finances and life.
However, the role of ourselves and a tour pro’s caddie are entirely relatable.
Them with their tour pro, us with our clients.
Importantly, when working with us, we play an integral role in helping clients achieve their objectives.
Often, what gets missed is that it’s in our interests for our clients to do well.
If our clients do well, we do well.
There’s a mutual benefit.
Our client’s finances are good.
And we benefit both reputationally and via word of mouth recommendations.
Get in touch
Interested in how we can help you?
We have service levels to suit everyone.
Your needs may be simple, or complicated.
Let us decide.
Drop me an email, francis@fortitudefp.ie or request a callback.
You can also give me a call on 086 0080 756 or access our diary here and book a call at your convenience.
We will initially have a no-obligation chat with you at our expense.
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