"how to get free investment advice and
golf tips at the same time!" ...

Of course, you’d be right to ask how this can be possible!

Let’s take a look at comparing different assets when investing with that of different types of shot that make up a round of golf.

The assets of our game would be divided into five assets; driving, long irons, short irons, bunker shots and putting.

After playing eighteen holes, we golfers tend to reflect on the round and say: “My driving was a bit off today but my putting was good” ... or next day: “My long irons were solid but lost feel for my short game”.

I’m assuming that 99% of you readers are amateurs and therefore there is no way of knowing which will be the best assets of our game before we set off for 18 holes.

Seldom is the case that all five assets (driving, long & short irons, bunker & putting) combine consistently to return our personal bests, although it’s a great feeling when it does happen!

The same applies to our nest-egg when investing our wealth ...

Likewise, when seeking to play a good round we need to include a driver - our longest and very important shot. These are our blue chip equities.

Personal choice plays a large part in all aspects of our lives. For example, a playing partner in a recent round used his Big Bertha only once when trying to achieve consistency in his score and it served him well.

The same might apply to his investment choices, where he places very little in equities (stocks & shares) that will minimise any fluctuations to his investments overall when aiming for a secure return or income from his capital.

Where another regular partner hits big and hard, he would have a large proportion of his investments in equities and in the long term it pays off!

As we need a number of clubs in our bag to compliment the 5 aspects of our game, we should also look to diversify our wealth into several different asset classes when investing.

The old adage is “don’t put all your eggs in one basket”, of which I am a firm believer, but ... what do we put them into?

Firstly, let’s look at how our favourite club golfer “Monty” played, or rather how his 5 golfing assets looked after playing each day:-

Now look at a factual example of how 5 different assets have faired in through each of the last five years:-

2006 tells us that UK Property (this is physical commercial property, not residential houses) appeared top where Commodities finished last.

An interesting thing is that cash (bank deposits) were consistent, albeit 2 out of 5 years in 4th and the other 3 years in 5th place.

We should include most types of assets in our portfolio. Where the job of a putter is different from that of a driver, so too is a cash deposit account different to equities.

Therefore, as the best club selection will ensure the best opportunity to return with a good score card, the same applies when choosing the correct blend of investment assets to match our expected returns or income from our capital.

Surprisingly, diversifying assets in such a way can be effective for all investors, from as little as £10,000 or up to and over £1million.

Each person’s game is different, each person’s investment goals are different.

Whether you need to save for your first home, your children's future, or retirement needs, your financial goals - along with your lifestyle - are constantly changing.

The good news is there is certainly a financial product out there suited to your needs!

Just fill in this simple form and ask Robin - our fully qualified and regulated IFA. He'll be happy to give you no-strings-attached, free investment advice and answer your financial queries. Read all about him here.

And check out more of Robin's financial articles on the following pages:

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