So whether you’re already retired or are planning to retire in the next few years, consider the following suggestions:
Try to overcome the “yips”
When you miss those short puts – the ones you know you should be making – you might be in the grip of your old friend, the “yips.” As you know, it’s not always easy to shake this problem, but many golfers have benefited by working to improve their concentration, especially by adhering to a strict pre-shot and in-shot step-by-step routine. When investing for retirement, or managing their portfolios during retirement, many people can get the investment version of the yips – that is, they get nervous during market downturns, and then they make mistakes, such as selling quality investments when their price has dropped. (Remember the first rule of investing: Buy low and sell high.) To overcome this type of yips, the solution is the same as for golf: Maintain your focus and concentrate on making appropriate moves, such as building and maintaining a diversified portfolio that’s suitable for your needs, goals and risk tolerance.
Forget about that hole-in-one
It’s every golfer’s dream: a hole-in-one. When you tee up on that tempting par 3, and you’re feeling good, you might just want to go for it – but when you do, you could end up overshooting the green or plunking into the water. Many investors also try for a “hole-in-one,” in the form of pursuing that one “hot” stock that’s going to make them rich. However, by the time they hear about such a stock (if it even exists), it may have already cooled off – and, in any case, it might not be right for their needs. Instead of looking for that ultimate, one-time winner, look for solid investments that you’d be comfortable holding for the long term.
Study the course
The more you know about a course you’re going to play, the better off you will be. You can plan the approaches you’ll take on various holes and think about how to avoid the sand, water and rough. When planning for your retirement, or even when you’re living it, you also need a strategy, one that addresses questions such as these: How can I structure my investment mix to provide me with a long-term income stream? How much should I withdraw from my portfolio each year? When should I start taking Social Security? Am I doing all I can to control investment-related taxes?
Visualize
Consider these words from World Golf Hall of Famer Nick Faldo: “Visualization is the most powerful thing we have.” If you can visualize what you want to do on each hole you play, you are well on your way toward a successful round. The same idea holds true for retirement planning: If you can envision the type of retirement lifestyle you want, you’ll be more likely to achieve it by sticking with appropriate financial and investment strategies.
Document your score
Are you improving? How would you know unless you’re writing it down? Do you know exactly how much money you need in order to retire and remain comfortably retired? The answer for well-over 95% of those reading this is ‘no’ (and I’m being generous). I challenge you to change that and create and maintain a written strategy with a professional financial advisor. It should be reviewed regularly to see how your ‘score’ is developing. You’re playing the retirement game one day, whether you like it or not, you ought to know what you’re aiming for.
So, there you have them – some ideas that play well on the golf course and in the retirement arena. Put them to work soon.
Peek can be reached at [email protected].