5 Financial lessons to learn from FIFA World Cup
Football fever is on and as you watch the World Cup games you could also take important cues on investing from the strategies adopted by the teams. Quite similar to the requirements of investing success, teams strategise for each match and also for success over the long run in the tournament.
Here are some important lessons you can learn from the way the successful teams play the game:
Set your goals
Before the start of a match, the team always plans their strategy. The team which scores the highest number of goals wins the match. Similarly, while investing, you should have the goals in mind. One must not limit themselves to planning only towards their childâs education goal and their childâs wedding goal. You should also think and plan for goals like an overseas vacation, buying a car, etc.
You should also plan for the long-term for your retirement goal. In fact, planning for retirement should be one of your first goals when you start investing. The journey towards the retirement goal consists of two phases, first is the accumulation phase, where you need to save money and the second is the distribution phase, where you plan to get monthly income till your life expectancy age. A financial adviser will help you understand that how much you need to invest today by calculating your expenses to get the same amount as income needed in the second phase.
Have right mix of asset classes
Just like a balanced team achieves greater success, you should have a balanced portfolio which can help you get maximum returns. This way despite investing in debt instruments, you should also make investments in equity and build a balanced portfolio. A financial adviser will help you have a right mix of asset classes which will boost your investment amount whereby you may end up achieving your goal successfully on time. Having a good portfolio minimises risk and also helps in maintaining inflation-beating returns.
Review your strategies
Teams change underperforming or tired players midway through the game even if they have a great reputation. This gives an impression of how and when you should review and be prepared to change your investment strategy from time to time. You should always be cautious about your investments if any of the schemes do not perform well over a period of time, you should ideally switch the investment to another better-performing fund. To acknowledge fundsâ performance, you should review them every quarter or semi-annually.
Keep yourself updated
Teams study opponents and then formulate their strategy to overcome them on the field. Knowledge of things you are up against help in creating a winning strategy. Similarly, you should do proper research and upgrade your knowledge on a regular basis. Never panic when there market volatility and correction and do not make choices randomly.
Have a financial coach
Your investment advisor can act as the coach of a team. Just as the coach plans out the strategy and trains the skilled players, by taking the help of an adviser an investor can analyse the target amount needed to achieve a particular goal. The adviser will also help in calculating the monthly investment you need to make while meeting the target amount.
The World Cup trophy is the most prestigious prize in the football world. Nowadays, the World Cup 2014 is in full swing, and there will be a new champion's name on the trophy. Let us show you the story about it. Click below to watch the video of History of FIFA World Cup Trophies.