Ready. Set. Go.
The Olympics are off and running and swimming and jumping and rowing and so on. The Olympics are extraordinary because it brings the world together. We have the opportunity to witness amazing feats from incredible athletes – young and old. I'm always astounded at how fast athletes run or how high they jump. As viewers, we see the final results as athletes pursue gold. However, we rarely see their years of training, struggles, or setbacks.
My first experience with the Olympics was the 1976 Montreal Games. I sat in my parent's office eating McDonald's, watching a small colored TV. I was enamored with Bruce Jenner winning the decathlon, Alberto Juantorena winning the 400 and 800-meter races, and Edwin Moses setting a world record in the 400-meter hurdles. My grandmother donated a few dollars to the US Olympic Committee, and she gave me a yearbook listing the members of the US team and their results from the events.
Olympic athletes are naturally gifted, but they must train for several years or decades to sharpen their skills. Usain Bolt won eight Olympic gold medals, and he holds the world record for the 100 meters with a blistering time of 9.58 seconds. He probably trained for thousands of hours to run 100 meters in less than ten seconds.
What can investors learn from Olympic athletes? Let's take a look.
Investors must prepare to succeed. Investing is a life-long journey, and there are no shortcuts. To get ready for your financial future, you need a plan. A financial plan will guide your steps as you get closer to the finish line – whatever your goals may be. It will keep you focused on your goals and help you avoid distractions or pitfalls. Can you imagine Sydney McLaughlin or Simone Biles training without a plan? I can't.
After your plan is complete, you're set to launch. If you completed your plan correctly, it should set you up for a lifetime of success. However, because it's finished doesn't mean you can file it away, never to review it again. It should be checked regularly and adjusted as needed. Athletes monitor, review, and modify their training based on results and feedback, and we should do the same.
It's go time. You're ready to run. For your plan to work, you must follow the recommendations. You need to act. If Katy Ledecky always trained but never raced, she would not have shattered world records or won multiple gold medals. To cross the finish line, you need to leave the blocks.
A key factor to an athlete's success is their coach. Most elite athletes work with coaches who help them reach their goals. Coaches act as mentors, accountability partners, or confidants. Likewise, trusted professionals can assist you in reaching your goals. A financial planner or advisor can organize and quantify your finances. In addition, your team may include a CPA, attorney, mortgage broker, insurance agent, real estate agent, or banker.
Unlike Olympic athletes, you're not competing against others to achieve financial success. Everybody can get a retirement medal. You don't need to keep up with the Joneses or retire with more money than your brother-in-law. In fact, if you try to spend money like your neighbors, you could lose the retirement race. Focus on your goals – not your neighbors.
You're ready to perform; I know you can do it! It's time for you to run for retirement gold.
Citius – Altius – Fortius. ~ Olympic Motto
August 4, 2021
Bill Parrott, CFP®, is the President and CEO of Parrott Wealth Management in Austin, Texas. Parrott Wealth Management is a fee-only, fiduciary, registered investment advisor firm. Our goal is to remove complexity, confusion, and worry from the investment and financial planning process so our clients can pursue a life of purpose. Our firm does not have an asset or fee minimum, and we work with anybody who needs financial help regardless of age, income, or asset level. PWM's custodian is TD Ameritrade, and our annual fee starts at .5% of your assets and drops depending on the level of your assets.
Note: Investments are not guaranteed and do involve risk. Your returns may differ from those posted in this blog. PWM is not a tax advisor, nor do we give tax advice. Please consult your tax advisor for items that are specific to your situation. Options involve risk and aren't suitable for every investor.