>Some people don’t understand the power of zero when it comes to managing money. A simple way to look at it. But first, lets take a little time to discuss some golfing basics.
In the game of golf the person who makes the least amount of mistakes and shoots Par or better is on top of the leader board. These are the golfers who tend to stay on the practice range longer and study the game regularly, review their performance often and more than not meet with a coach or mentor who can help them improve their swing. Some of these golfer don’t carry the most expensive clubs and typically are not into buying the latest fad item just because it was “Seen on TV”.
Managing your money should be done the same way. Yet more and more people are persuaded to get into the latest plan offering the most “dramatic impact” to their financial plan.
The power of zero is a simple concept to understand.
Imagine playing the game of golf where the average player never scores higher than par. Their ball can go in the water, they can 3 putt and the worse they score on the scorecard is par for the hole. They never see there score go below par.
That is how a defensive strategy in your financial planning can impact you. The market can go “into the woods”, overshoot greens or worse but your money always stays equal. And when the market does better than par you get to add those earnings to your financial score card. How cool is that?