Over the past few weeks, we’ve noticed how managing your asset allocation is just like forming your very own football team. Different components come together to perform specific roles and guide the team towards success. Also, the structure of the team needs to be dynamically managed according to the prevailing situation. However, is a team just magically formed by itself?
In the world of football, the coach is the most important component of a team. His role is to assimilate the quality of the team’s players, understand the team’s objectives for the season, and to structure and orient his team towards where they aspire to be.
During the course of the season, he must study his opponents and manage his team accordingly. This will fortify his team’s strengths. He must ensure that the planned strategy is executed. When required he should quickly take corrective actions to get the team back on track. A season could be filled with challenges. The coach plays a vital role in motivating the players to get through the tough times. Thus, both from a technical and emotional perspective, the coach is the key to the team’s long-term success.
But how is this relevant to asset allocation? Your financial planner is your coach. By reviewing where you stand and what your goals are, he can help you structure your team in a manner that suits you. During difficult times, he will help by providing the right guidance and advice to get you through. With the right formation and your assistance in implementing the game plan, he can help transform your team into a winning one. Probably, even into one of the greatest teams of all time.