Blog | MO50

Why a Good Financial Adviser is Like a Good Cornerman in Boxing?

Written by Dallas Davison, Michael Hogue and Ali Hogue. | Sep 16, 2021 2:00:00 PM
To ‘have someone in your corner’ is a common saying that originated in boxing, where the coach or trainer is in the competitor’s corner offering advice and letting the fighter know how they are going.
 
This can, of course, be a man or woman – ‘cornerman’ is just the terminology that’s used.

So how is a cornerman the same as a good financial adviser? We think there are a few similarities.
  1. Knowing their fighter’s strengths and weaknesses. Many people underestimate their financial skills. Like a cornerman, a good financial adviser will be in your corner to remind you what you’re good at, and what you may need to improve.
  2. Knowing their fighter’s psychology. In a fight, some boxers ‘run hotter’ than others. So some need to be calmed down, or fired up, or simply given a pep talk. When it comes to money, some people don’t save enough while some save too much and forget to enjoy their life. Saving too much, in almost all cases, leads to frustration over time; where the clients are not enjoying living their lives and do not have a sustainable financial strategy. For example, some people might be putting away $1,000 a week but only need $500 to reach their retirement goal and live in a financially sustainable way. For some, it’s the other way around. Nobody ever believes this, but sometimes our job involves telling clients to slow down and enjoy their money; and go on a holiday!
  3. Knowing the opposition. In our case, this is the ATO! As your financial advisers, we know tax legislation and how to get the best returns / results. Like boxing, there are very specific rules when it comes to paying tax – rules we need to abide by. We want everyone to be a self-funded retiree; and the best way to achieve this is to make the most out of correct legislation and strategy.
  4. Caring the right amount. As a cornerman, you’ve got to want your fighter to achieve what they want to achieve, but you also want to care about their safety and not put them through too much pain – just the right amount to succeed. Parents, for example, are usually not good cornermen! They might push too much knowing what achievement means to their kids. Or they may not push enough, worried about sustaining injuries. As financial advisers, we are a good fit for clients, and we will always talk about goals and how much they want in retirement; then work backwards to achieve those goals. 

If you need help getting in the ring, give us a call! We are excellent (financial) cornermen. (07) 4772 0938