|
For Immediate Release
“There are two kinds of light - the glow that illuminates, and the glare that obscures.”
–– James Thurber, author and political scientist.
Vancouver, BC (August 25, 2008): With the 2008 Olympic games having wrapped up, I still marvel at the endurance events over long distances. Like the triathlon, where athletes have to be skilled at three components - swimming, cycling and running.
They face long hours of preparation to qualify for the finals. Then the stamina and endurance for the whole event. Deploying a sustainable pace. Being good at two out of three components would likely not be enough for the medal podium.
Last Tuesday's race started with a 1.5-kilometre swim, followed by 40-km of cycling, then capped with a 10-km run. I admire all who go through a gruelling couple of hours to finish such an event, medal or no medal. Not an easy feat, at least speaking for myself.
Parallels to managing money
As I was watching the event, I got to thinking that managing money has parallels to the triathlon. You have to be consistent at three skills:
1. Saving enough money,
2. Accumulating the nest egg, and
3. Making it last.
Similarly, pacing your successes is desirable. Being good at only two out of three skills may put the money exercise in some jeopardy.
There is one interesting observation about managing money. Many get to execute the personal game plan over 4 to 6 decades, perhaps longer. This can be a saviour to recover from a significant loss. Or it change the landscape if money starts to run low during retirement.
Successful management of money requires extensive knowledge. Investments, retirement, income tax, managing risk, estates and business are just a few. You also need experience to design, implement and monitor the game plan to realize personal goals and objectives.
Some seek portfolio growth. Some focus on preserving capital. Some require specific income streams. Some leave a legacy. Some want to provide for children and grandchildren. Some need help with the family business and estate plan.
There is no shortage of personal combinations to set your sights on. Then we encounter the periodic bulls, bears and volatility that add more dimensions to the mix.
Ongoing due diligence is a must to make it happen. The triathlon of money management is indeed a very desirable skill set to endure the long distances.
I welcome your comments.
|
