GOLF MEETS THE MARKETS

Neal A. Deutsch, CFP^®

Published in Rivertown Journal, November 2009

Ok, I admit it…I love golf. I’m a golf nut, a golf fanatic. When I’m not playing, I’m thinking about it, or watching it on TV. To me, it’s the ultimate relaxation (do I hear laughter out there?) and the best challenge anyone can submit to. Even in a tournament or friendly match, your closest opponent is yourself, not anyone else. It’s reputed to be the hardest sport in existence, and when you think about how you hit a ball hundreds of yards with a stick and land it in a hole 4 ¼” wide after 3 or 4 or (hopefully) 5 strokes, you can appreciate the challenge in it. I love getting up with the birds, meeting my dear friends for breakfast in the early hours of the weekend, and spending a precious few hours with those I love to be with, strolling in the beautiful surroundings left alone to my thoughts and appreciation of life as we know it.

I am proud to say I accomplished the ultimate in golf last year- a hole in one (Apple Ridge Country Club, Hole 6, 155 yards, 7 iron- thanks for asking!) I started to think…what did it take to do this near impossible feat? Let’s see…I’ve been playing for 25 years, an average of 35 rounds per year, 18 tee shots per round = 15,750 chances. These were my odds at the time of accomplishment- 15,750 to 1. You know what they say…even a blind squirrel eventually finds a nut! I know folks who have been playing far longer or more frequently than me who have never had an ace, so I count myself among the blessed. Nice, you say, but what does this have to do with finance?

Have you ever gotten a hot tip, a sure thing, a can’t miss stock that seems so good, so logical, so much of a sure thing you were lured into investing “just a few bucks” in it? (C’mon…admit it- we all have) While the investment was done with the best of intentions, the fact is, you were looking for your hole-in-one. Just like each time I stepped onto the tee box with that glimmer of hope, you too had that same feeling when you gave the order to buy. My odds were 15,750:1 when I hit it…what were your odds?

The wide swings in the markets in the past year or so have brought emotional ups and downs to all of us. Wide swings in our investments, retirement savings and all around future may lead us to do things we would not ordinarily do, take chances that are outside our normal risk tolerances, or grasp for straws we would not normally consider. It’s important, especially at a time we are in now, to evaluate your financial position, draft a plan, and follow it. Now more than ever may be a time to evaluate your advisors, or if you have been doing it yourself, consider teaming up with a qualified Certified Financial Planner.™ You’ve heard me say it before…if you have a toothache, you wouldn’t pull it yourself. Perhaps it’s time to find assistance with your financial health.

Remember- a bogey portfolio with a few pars thrown in and an occasional birdie will get you where you need to go. If you’re planning to win the tournament by hitting a hole-in-one, I wouldn’t count on bringing home the trophy…

If hearing from me once a month isn’t enough, come visit me in our new blog site at www.chestnutblog.com. If you think I’ve got pearls of wisdom here…you ain’t read nothin’ yet! See you there!

Neal A. Deutsch is a Certified Financial Planner^™  & Registered Securities Principal, offering securities through First Allied Securities, Inc., member FINRA/SIPC.  Neal is President of Chestnut Investment Group in Suffern, NY, helping people with financial planning since 1984. Please feel free to call Neal at 845.369.0016 or email him with your questions at neald@chestnutinvestment.com. Visit his website at www.chestnutinvestment.com