I appreciate not everyone enjoys golf but lots of people do and there are plenty of parallels between performing well on the golf course and being smart about your tax planning. You can apply this to a lot of sports that you enjoy taking part in. For all sports, goal setting and planning for the long term – usually with the guidance of an expert – are critical to reaping big rewards.
For example, to be a great golfer or sportsperson today, you need to have a workable, personalised plan; be patient; play the long game; and be receptive to expert advice and coaching. If you have a proactive and knowledgeable partner with whom you can collaborate, the likelihood of victory increases significantly.
The same could be said about tax planning, tax is vital to most people’s financial planning so if you are trying to manage it on your own, without any advice from an expert, there is a good chance you will miss something – perhaps concerning tax allowances and reliefs or what you have available to utilise – and if you get it wrong you could end up in a bunker with no way out. Using a trusted adviser, like a good golf caddie or coach, who knows where the obstacles are, can help you and show you what is essential, what to be aware of and help you to make good decisions.
With tax, golf and most sports, you should be thinking ahead and focusing on the next three or more moves. It is like a game of chess where you think several moves ahead. You need your eye on the current shot/move but you can’t lose sight of where you are heading and your end goal or the dream you are trying to achieve. If you get it wrong and play a terrible hole in golf, you have to put it out of your mind, move on and trust your game plan when approaching the next tee. The same applies to financial planning, think ahead, plan ahead but if you get it wrong, put it right quickly and get your plan back on track.
Don’t panic: stick to the personalised plan
If you have a poor hole, you must not panic, carry on playing your own game, stick to your personalised plan. If you see a professional taking out their driver and driving the ball to the middle of the green, it doesn’t mean you have to do the same – perhaps stick with your club choice. It’s key to follow your own path to success and play within your capabilities and to your strengths. The same applies to your financial plan, don’t get distracted by other people, many of us listen to the man down the pub or friends but just because they do something it does not always mean it will work for you and your own circumstances so care must be taken as everyone is different.
Good financial planning, tax planning and improving yourself at any sport starts with building a realistic, personalised plan and getting quality advice.
The best thing you can do to ensure success is to find a proactive, trusted expert who understands you and what your short, medium, and long-term objectives are and has your best interests at heart. Learn from them and don’t expect them to do it all for you. Take on board what they are saying to improve your game and your finances quicker. You don’t want to be hitting a double bogey, a birdie must be the aim!
Hitting the tax-planning equivalent of a double bogey could severely harm your finances, so it makes good sense to seek out and collaborate with a trusted expert to help you stay out of the rough and keep on the fairway.
This guide is for information purposes and does not constitute financial advice, which should be based on your individual circumstances.
The Financial Conduct Authority does not regulate some aspects of Trust, Tax and Estate Planning
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This guide is for information purposes and does not constitute financial advice, which should be based on your individual circumstances.
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