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Choose the right club

Mar 01, 2024 | Kristi Owens


Building purpose-driven wealth is much like anything worth doing. Define your goal. Develop your plan. Select the right tool for the job. Financial tools include stocks, bonds, and cash. Golf requires different tools...let's choose the right club.

Golf club choices

Building purpose-driven wealth is much like anything worth doing. You start with establishing a goal. Then you develop a plan to achieve the goal. Finally, you select the right tools for the job.

The entire sequence of events is the process you follow to achieve the desired result or outcome.

When building wealth, your goal may be to retire when you are 60. If you are currently 40 years old, you will develop a plan (roadmap) that defines your investment strategy over the next 20 years. However, if you are currently 55, your roadmap looks very different because there is only a five-year runway to achieve your said goal. The tools you use will also be different depending on your current age and the starting age of your goal.

The most successful tool for long term growth potential are stocks, yet they are also the most volatile short-term tool. On average, the US equity markets will correct, or pull-back, between 10-20% each year. But over a longer time horizon, say 20 years, stock investments have historically grown on average 8-12% per year, which far out performs other investment options such as bonds and cash.

For long term growth needs, stocks are your best fit. For short term needs, cash may deliver the stability you desire. For intermediate needs, fixed income (bonds) may deliver more income than cash but also less volatility than stocks.

Let’s look at another example where selecting the right tool is dependent on time and distance to your goal.

Time horizon is one of the keys to selecting the right investment strategy, just like distance is one of the keys to selecting the right golf club.

Golf tools are similar to investment tools. There are three main categories. In investments, you have stocks, bonds, and cash. In golf, you have a putter, irons, and woods.

Let’s play a few holes to illustrate the goal, the process, and the club selection needed to achieve the goal of putting the ball into the hole in the fewest number of strokes.

Hole #1 – Par 4 – 400 yards to the hole

  • 1st club – Driver – outcome is 200 yds down the middle
  • 2nd club – 7 iron – outcome is 150 yds into a sand trap
  • 3rd club – sand wedge – outcome is on the green but short of the hole
  • 4th club – putter – outcome is in the hole

Hole #2 – Par 3 – 200 yards to the hole

  • 1st club – 9 iron – outcome is 180 yds onto the green
  • 2nd club – putter – outcome is short of the hole
  • 3rd club – putter – outcome is in the hole

Preparation is key to your success. Knowing how far you can hit your clubs will help you determine distance vs. club selection. Also, navigating the terrain, including the obstacles along the fairway like trees, water, and sand traps will require knowledge and execution.

If you have ever watched professional golf, you will notice constant communication between the golfer and his/her caddie. A professional caddie provides insight, course knowledge, and guidance on club selection at every shot to ensure consistency and success on every hole.

Our team is ready to serve as your caddie to help you navigate your life’s terrain and guide you on selecting the right investment tools to achieve all your financial goals.

Come join us! We are impacting lives!


Wealth planning