When it comes to finances, what is your Olympic personality?

When it comes to finances, what is your Olympic personality?

Provided by RBC Wealth Management and Eric St. Martin

The intertwined rings. The torch. The national anthems. The athletes. These are all symbols of the Olympic Games. Two-weeks of competition that bring together nations even as they compete against one another to receive the ultimate reward – a gold medal.

When it comes to managing wealth, it can also be like a sport. As an athlete needs to have the commitment and perseverance to reach that podium, investors need to have the tenacity and resilience to reach their financial goals. 

Just like there are many Olympic events, there are many different financial personalities. Which one are you?

Cross-country skier – This personality sets a long-term goal and moves at a consistent pace to achieve it. This could be a conservative investor who focuses on fixed-rate investments to reach their goals.

Luger –This investor follows a set path, too. But, in contrast to the cross-country skier, this person is more of a risk taker. They may be depending on a single investment or portfolio of high-risk equities to reach their goals. Depending on the condition of the market, the risk could bring them safely to the finish line or they may be knocked off track.

Figure skater – This wealth management plan is one of creativity and endurance. This is an investor who has a portfolio that they readjust as needed. Depending on the conditions, sometimes they take it slow and conservative and other times surge forward with riskier investments. It is a strategy of staying invested for the long term, looking at the overall performance and adjusting the investment mix as needed to reach the end goal.

Freestyle skier – This investor makes decisions based on whim and flight of fancy. They can easily be swayed by hype and the headlines of the day trying to time the market as they go. This approach can at times be smooth. But investors may encounter big moguls on their path or make decisions that send them into the air and out of control. As a result, the course to the end goal is challenging.

Ski jumper – This person plunges into a wealth management plan without looking back or knowing what’s ahead. This may be the investor who started investing late, hasn’t developed a thoughtful plan and is trying to make up for lost time with a quick win.

Biathlete – Just like the athletes who perform this combined sport of cross-country skiing and target shooting, this person has both short-term and long-term goals. This may be the investor who has a retirement goal in place but also has set goals for their children’s college education expenses or annual family vacations. They plan for each financial obstacle or opportunity without losing sight of their long-term goal.

Curler – In contrast to the biathlete, the curler doesn’t have a long-term goal. Instead they are simply pushing obstacles out of their way one at a time. This investor tackles financial issues as they present themselves. Depending on their circumstances at the time, sometimes they hit their target and sometimes they don’t.

Hockey player – This investor approaches their goals as a team sport. They have employed a group of professionals including a financial advisor, attorney and accountant, among others, to help them realize their goals.

Regardless of your personality, it is important not to be a spectator to your own financial wellbeing. Just like an Olympic-bound athlete, it is only through commitment and perseverance that you will have the chance to achieve your goals. 

There are plenty of people who will have opinions about how to invest for the future. Remember, not every savings and investing vehicle is appropriate for everyone. Know what you are investing in and don’t get swayed by the hype. Every good athlete needs a trainer or coach and you are no different. Consider working with a professional financial advisor who can help develop a strategy and provide guidance and encouragement along the way. It may mean the difference between standing on the podium at the end of your journey or watching others walk away with the gold medal.

This article is provided by Eric St. Martin, a Financial Advisor at RBC Wealth Management in Stillwater, MN. The information included in this article is not intended to be used as the primary basis for making investment decisions. RBC Wealth Management does not endorse this organization or publication. Consult your investment professional for additional information and guidance.  For additional information, please call651-430-5535 or visit www.neumanwmgroup.com. 

RBC Wealth Management, a division of RBC Capital Markets LLC, Member NYSE/FINRA/SIPC

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