Why do top athletes need a coach?
Given their natural talent for their respective fields, what can the likes of Ryk Neethling, Tiger Woods, Lance Armstrong and the Williams sisters learn from someone else? These internationally-renowned sportspeople are dedicated, determined and confident. So why would they require a coach?
Behind virtually every champion athlete is a champion coach providing guidance in three key areas: improving technique, setting short and long-term goals and continually reigniting the athlete’s motivation to stay on track to achieve these goals. A financial coach or what we refer to as a financial planner, plays much the same role for champion investors.
setting short- and long-term goals
Ask any successful athlete, in fact, ask anyone who is successful in any particular field and the importance of goal setting will be immediately obvious. A coach working with an athlete for the first time will not immediately consider diet, fitness or training routines. Instead, the coach and athlete will work together to set realistic goals. Only then will the coach assesses the athlete’s abilities, fitness and potential and design a plan that offers the best chance of achieving those goals.
Similarly, investors can benefit from setting clear, realistic goals, such as the level of income they wish to live on in retirement. While longer-term goals are essential, short-term goals are as just as important as most people have financial needs that will not wait until retirement. These can include buying a new car or paying off debt and can all be built into a long-term financial plan. In this way, investors can enjoy ‘little’ victories along their journey to lasting financial well-being.
providing expert technical advice
Athletes become champions by accessing the latest technical training through updated technology and information and most importantly, a trusted coach.
Investors should also obtain as much technical detail as possible when it comes to understanding their investments. Each individual’s circumstances are different and require a customised approach to ensure that their goals are achieved. This means that everyone requires a tailor-made strategy that suits their particular needs, whether it’s planning for retirement, organising inheritance, efficient tax planning or any other needs. Expert financial coaches will focus on those needs and use their technical expertise to develop a sensible plan and keep it updated. This includes providing guidance on sound investment principles such as diversification.
overcoming the barriers to success
Setting clear goals and developing a strategy to achieve them are essential for athletes and investors. However, the journey towards these goals holds great challenges and rewards. This is where coaches add their greatest value!
Champion coaches help athletes put setbacks, such as injuries, behind them and tackle the psychological obstacles in the way of success. Those athletes who ignore short-term pain and set backs and remain focused on their goals are the ones most likely to attain long-term success.
Investors are distracted by similar hurdles. For example, successful investors have to learn to live with the pain of occasional market declines. This is done by understanding the difference between a short-term reduction in portfolio value and a permanent capital loss. Excessive fear results in some investors selling their assets for less than they are worth in difficult market conditions. Others may be tempted to leave their money in
low-returning assets for long periods of time. Excessive optimism can be just as damaging. For example, investors who eagerly chase ‘hot stocks’ or ‘hot funds’ often do just as poorly as they don’t rationally assess the outlook. In these instances, an expert financial coach helps investors deal with their emotions and other behavioural characteristics that get in the way of success. Investors who can overcome the temptation to self-destruct during difficult market conditions and stay focused on simple investment principles during the good times will give themselves the best possible chance of achieving their goals.
When all is said and done, champion athletes and investors enjoy greater success by working with champion coaches.
Tags: financial coaching, Fnancial planning, investment advice