By Dan Haylett, Financial Planner at TFP Financial Planning.
Playing golf has been a passion of mine since I was old enough to hold a club. Earlier this year, I competed, getting a good friend of mine to caddie for me.
To cut a long story short, in my match I was 3 down with 3 holes to play and managed to galvanise myself to win the last 3 holes and claim a half point for my club. I credit this comeback to my caddie, a close friend and fellow golfer who managed to get me thinking on the right track, clear my head of distractions, channel my frustration and anger, give me sound advice, and allow me to just hit the shots I needed to hit.
This experience got me thinking about how what a caddie does is very relatable to what I do on a daily basis as a Financial Planner.
First, let me give some background information. People often say that a good caddie does three things: show up, keep up, and shut up. But a great caddie wears many hats. They're the player's psychologist, technical adviser, and confidante.
The caddie is an extremely important resource for the professional golfer. We would think that the main job of a caddie would be carrying the clubs, taking enough food and water, making sure that there is enough balls in the bag (see: Tiger Woods' former caddie, Steve Williams) and ensuring that the bag is packed for all types of weather conditions. This is of course a vital part of the job, however there is much more to it! A typical caddie goes out prior to the tournament to walk the course, check yardages, identify ideal targets/landing spots, identify any "danger" areas to avoid, check the slope and breaks of the green, check weather patterns, prevailing wind direction, and more.
They collect this information to help the player make informed decisions during the tournament, or to help a player strategically prepare for a round prior to teeing off.
The caddie is also there to provide moral and mental support, giving players the confidence to stick to their plan and process and ensure they stay calm during pressure situations. We can hear this more now due to better TV coverage where we can often hear the conversation between player and caddie.
If a player is unsure about which club to hit, then the caddie might give them a few words of encouragement like "This is the right club" or "Trust your swing." Or, if a player is in contention to win and the adrenaline is pumping hard, the caddie can help the player to focus on the shot and not make any mental mistakes. Alternately, if a player is suffering from some negative emotions, the caddie can help them try to stay positive and regain confidence.
That last part is extremely critical, as many tournaments are won or lost by what happens inside a player's head. Jack Nicklaus once said, "The most important six inches in golf are those that lie between the ears" (i.e., your brain). A good caddie helps a player keep their mind focused and their emotions in check.
Of course, the player is the one swinging the club, but golf is so much more than just hitting the ball a certain distance. The caddie is truly an integral part of the "team" and should be recognised for helping contribute to a player's success.
This is where I think we can draw on the comparisons between ourselves as Financial Planners and that of elite level caddies
Yes, of course financial planners do what's expected of us like updating a balance sheet and taking care of investment portfolio stuff. We stay current on financial regulations and rules, inflation expectations and interest rate movements as well as stock market movements and total expense ratios. We also look at risks that may need to be eliminated by insurance protection. These things allow us to us have a great conversation with a client and more importantly give them the foundation to make sound financial decisions.
But more importantly in my eyes, we are there to provide moral support and confidence to our clients. It is very hard to make all these difficult financial decisions alone. We can be there to say that, "Yes, going on that amazing holiday is OK" or, "Yes, you can really retire whenever you want", or, "No, this purchase would jeopardise your financial plan."
We try to keep clients focused on their goals and help them keep the emotions that will detract from those goals in check. Much like if a golfer starts to doubt if they can hit a particular shot or start to become indecisive when looking at the speed and breaks in a putt, the caddie will keep them on track and stop emotional biases from hindering their performance and reaching their goals.
Of course, this is the client's life and money we are talking about here. Nonetheless, the Financial Planner plays an integral role in how successfully our clients achieve their goals, live the life they deserve, and enjoy extraordinary results. After all, we want to build an unbreakable bond with our clients and enjoy being part of their winning team.
Dan joined TFP Financial Planning Ltd in September 2018.
He has worked in financial services since 2005, specifically in investment management, where he has held senior sales and management positions in the City with some of the largest global asset management companies.
Dan is sports mad, with a particular love for cricket; he has played to county 2nd XI standard and has spent a year in Australia as an overseas professional. Dan also loves golf and plays to a 6-handicap.
