The Golden Child?
Michael Phelps has entered the record books as one of the greatest swimmers of all time. He went a perfect eight-for-eight in the 2008 Summer Olympics in Beijing, breaking Mark Spitz’s single Olympic Games record for gold medals. He swam seventeen times over nine days and broke the world record in four of his five individual swims. His three relay teams also set world marks. He accomplished this through dedication (never giving up), practice, persistence, and discipline. He also got great coaching along the way.
Using the analogy of competitive swimming, most investors fail for one of these four reasons:
1. They failed to even put a toe in the water. Being too conservative when you invest is detrimental to your wealth. I see many people become so fearful that they invest only in safe, guaranteed vehicles such as CDs, Treasury bonds, and money market funds. As life expectancies continue to rise, so do the probabilities that too-conservative investors may outlive their assets.
2. They jumped into the pool without lessons. Being too aggressive is just as dangerous as being too conservative. Taking unnecessary risks and jumping into investments that are not understood are critical mistakes I see being made on a regular basis.
3. They failed to stay in the pool and keep swimming. Too many people jump in and out of the stock markets at the absolute worst times. I see people “finally get out” at the bottom of the market only to get back in after a major recovery.
4. They hired the wrong coach. If someone doesn’t share the same values as you, it is difficult for them to give you complete and practical advice for your unique situation. You and your advisor should share the same faith and beliefs.
Go for gold!
God doesn’t want us to be mediocre. He wants us to excel! Are you doing want it takes financially to win the gold, silver, or bronze? Or are you out of shape, out of hope, lost? No matter where you are on your journey, it’s never too late to get started, to improve, or seek a new direction. As always, if you ever have a question, don’t hesitate to shoot it my way! I’m here to help in any way I can.