Superannuation and investing have a lot in common with golf

When I play my weekly competition round, I have this nasty habit of looking at my net score and shots played after the 14th hole. With four holes to play – a par 3, par 5 and two par 4s – I’ll tell myself, Just add 20 shots, to see if I’m scoring OK.

Sometimes I start a round of golf well. Recently, I had 18 Stableford points for the front nine and then only 12 for the back nine, but the week before my front nine was poor then I scrambled like Tiger in his prime on the back nine to shoot 34 points.

I tell myself every week not to do it, but as I walk to the 15th tee, if I don’t check, I’ll think about it non-stop, which often ruins my swing. So I might as well get it over and done with and just look. Then I can either relax because I’m scoring OK, or I have to start taking risks to get a good result. But here’s the problem. It’s all well and fine to do that for competition golf because we have a rolling 20-round handicap scoring system, but when it comes to your money – your superannuation or your personal investments – you don’t get 20 chances. You really need to know how you’re tracking all the time, so you can adjust if you’re off the financial fairway.

Investing really can be like a round of golf. You have short-distance goals, mid-distance goals and long-distance goals. If you want the ball to go a long way, you’ll use the driver or 3-wood. Equities, like those clubs, are designed for long-term, long-distance results. You can have a smooth swing and hit down the middle or you can take a risk and swing big – you may get further ahead but you might end up in the trees, too. As you get a little closer to your goal, you change your assets to the mid-irons or wedges – much like having a portfolio with fewer equities and more defensive assets for less volatility. When you’re almost at your goal, you pull out the assets so that if you get it wrong, it won’t go too far offline. Sure, putting is very important, but having the right amount of money in cash or term deposits is important, too. Especially when you’re about to reach your goal – when you need to actually spend some of your money. You don’t play with one club, but ideally, you’d be able to use any or all the clubs in your bag.

Golf is meant to be fun, relaxing and good for our mental health, but sometimes it isn’t. We all know that feeling of leaving the course, having shot a Stableford score in the 20s or even the teens – and it lingers until you play again. Is there a more frustrating feeling? Probably if your playing partner shot in the 40s! All jokes aside, getting to the point where you start spending your superannuation, or needing to use your investments or savings for family, health or destination golf-trips – and not having enough – is a far worse feeling. Nothing really matters more than good health and having enough money to be happy.

Imagine playing a new course – a ‘destination’ course or Australian Golf Digest Top 100-ranked layout; one where you really want to get it right. If you have a bad round you’ll dwell on it for ages, but have a great round and you’ll be at peace with the world.

Now imagine being invited by the club pro to play a round. A social, but serious round with just the two of you. Good company, good course, good advice. They’ll talk you through the traps, which side of the fairway to hit and how quick the greens are. It’s one thing to get advice from a friend but it’s another thing altogether to get real-time advice from a pro.

In my role as an investment or superannuation caddie, I get to help golfers understand course management and shot selection. I do a lot of my client reviews over a social round of golf, too. It’s a nice way to talk about life goals and investment tracking while enjoying the pastime we all love.

Golf can be one of the more important things in our lives, but your investments and superannuation assets really are some of the most important things in life. So it makes sense to check in with a professional from time to time. And if it can be done during a round of golf, even better. 

• For more information on Dan Corbett or Superannuation Caddie, go to supercaddie.com.au or e-mail Dan at dan@supercaddie.com.au. Dan, as an authorised representative, and Super Caddie Financial Advice (t/a King of the Mountain Financial Advice), is authorised by King Of The Mountain Pty Ltd ABN 72 642 974 061 AFSL No. 524853 to provide financial advice. The above information is general advice, and you should always check that it is right for you before you rely on this to make a decision regarding your circumstances.

 Photo by istock.com/OSTILL