Investing is like playing golf! Okay, I can see you all looking with a furrowed brow, but when you think of it, especially those of you that play golf, you will see that there is a correlation between the two. That correlation is called RISK & REWARD.
You – the golfer – are stood on the Par 4 where a well hit drive puts you within a wedge of the green and a possible birdie that could win you the match. However, you have to drive over the lake and that is the risk, but the reward is that wedge to the green. Your other option is to lay up and take a long iron or even a rescue club to the small green and hope it holds, this is the lower risk option but maybe without the certain birdie chance so it is a lower reward, but safer.
As golfers know, most holes have a certain risk and reward options, some we take on and others we don’t. There are golfers that will not take any on and prefer to be ‘safe’ and come in on around their handicap. Investors are like that too, some will take a certain amount of risk; others want safety first and want to limit any potential loss to the bare minimum for a smaller reward…..They are the RISK and REWARD options.
You – the investor – have £100,000 to invest and you want as much growth as possible. To get this, you need to take some RISKS but the REWARDS are there if it goes the way you want. The other way is to use the “lay up” golf option where you go for safety first and maybe a lower reward for the lower risk, but where the possibility of losing your capital is lowered or even negated.
A professional golfer has his caddy that advises him on club selection, indicates to him where to hit the shot, warns him of the dangers in front of him, the wind direction, strength of that wind etc. etc. The amateur golfer doesn’t have that luxury and has to decide, select and choose on his own and he lives and dies by his own sword although he can, of course, employ a caddy. You, the potential investor do have the luxury of a “caddy” in as much as you can have an IFA who can steer you in the right direction, one that can advise on products and make suggestions to suit your needs. You can, of course, do this on your own, but then you live and die by your own sword! A caddy to the golfer is a real asset in going around the golf course, very much like an IFA is to the investor in the investment arena.
So, as we can see and hopefully understand that golf and investing have the same characteristics in a small way, they both have risks and rewards and they both have help and assistance available to help you soothe your way around the golf course or through the investment maze.
We, at AES, are caddies in the financial arena and as such, we look at all types of investments that would suit each individual and like a golfer, no individual is the same or have the same needs or outlook. Each have their own Risk & Reward criteria and it is up to us, the IFA (caddy) to make sure that those criteria are met and catered for.
For further information or advice on investments (or if you fancy a round of golf!) please contact me by phone on 968 978 188 or 674 015 194 or by email at [email protected]
You – the golfer – are stood on the Par 4 where a well hit drive puts you within a wedge of the green and a possible birdie that could win you the match. However, you have to drive over the lake and that is the risk, but the reward is that wedge to the green. Your other option is to lay up and take a long iron or even a rescue club to the small green and hope it holds, this is the lower risk option but maybe without the certain birdie chance so it is a lower reward, but safer.
As golfers know, most holes have a certain risk and reward options, some we take on and others we don’t. There are golfers that will not take any on and prefer to be ‘safe’ and come in on around their handicap. Investors are like that too, some will take a certain amount of risk; others want safety first and want to limit any potential loss to the bare minimum for a smaller reward…..They are the RISK and REWARD options.
You – the investor – have £100,000 to invest and you want as much growth as possible. To get this, you need to take some RISKS but the REWARDS are there if it goes the way you want. The other way is to use the “lay up” golf option where you go for safety first and maybe a lower reward for the lower risk, but where the possibility of losing your capital is lowered or even negated.
A professional golfer has his caddy that advises him on club selection, indicates to him where to hit the shot, warns him of the dangers in front of him, the wind direction, strength of that wind etc. etc. The amateur golfer doesn’t have that luxury and has to decide, select and choose on his own and he lives and dies by his own sword although he can, of course, employ a caddy. You, the potential investor do have the luxury of a “caddy” in as much as you can have an IFA who can steer you in the right direction, one that can advise on products and make suggestions to suit your needs. You can, of course, do this on your own, but then you live and die by your own sword! A caddy to the golfer is a real asset in going around the golf course, very much like an IFA is to the investor in the investment arena.
So, as we can see and hopefully understand that golf and investing have the same characteristics in a small way, they both have risks and rewards and they both have help and assistance available to help you soothe your way around the golf course or through the investment maze.
We, at AES, are caddies in the financial arena and as such, we look at all types of investments that would suit each individual and like a golfer, no individual is the same or have the same needs or outlook. Each have their own Risk & Reward criteria and it is up to us, the IFA (caddy) to make sure that those criteria are met and catered for.
For further information or advice on investments (or if you fancy a round of golf!) please contact me by phone on 968 978 188 or 674 015 194 or by email at [email protected]
