All across America, boys and their fathers are building a Pinewood Derby Car for the Cub Scouts. My son is no different. We actually just put the finishing touches on building a Pinewood Derby Car. And, last week when he was racing it at our local Pack meeting, I got to thinking about all of the lessons that you could take away from building a Pinewood Derby Car and apply to the world of investing.
Here are a few things about investing that we all can learn from building a Pinewood Derby Car…
How Building A Pinewood Derby Car Is Like Investing
A Great Car/Investment Starts With Research
I was blown away by looking at some of the other Pinewood Derby cars that were at my son’s race that weren’t optimized to be as fast as possible. It only took me a little time and effort to Google and find where to put the weights on the Pinewood Derby car to get it to be the fastest car possible.
I also bought a book to ensure that my son didn’t miss any steps in building his car, polishing the wheels, sanding the axles, and the like that would help when building a Pinewood Derby car and making it fast. The same thing is true with investing A little research can go a long way. There are so many resources available to investors that can help you find great stocks or mutual funds to invest in. You should start with
The same thing is true with investing A little research can go a long way. There are so many resources available to investors that can help you find great stocks or mutual funds to invest in. You should start with site like Google Finance or Yahoo Finance when you are researching investments.
It Takes Hard Work To Get It Right
Wow! I had no idea how hard building a winning Pinewood Derby car would be. There was a lot of sanding, painting, cutting, chiseling, and the like that had to go on to make that Pinewood Derby car a winner. It was worth it to bond with my son, but man wow!
The same can be said about investing too. If you are investing in individual stocks especially it can be a lot of hard work keeping track of all those companies and what they are doing in their industries. People with normal day jobs are at a disadvantage to other people like analysts and money managers who watch stocks and certain industries for a living. That is all they are doing day in and day out. It can be worthwhile for the rest of us but hard work nevertheless like building a Pinewood Derby car that wins. Click here to learn more about Motif Investing
Teamwork Is The Best Approach
It is hard for this dad to take a step back and hand the saw over to my son and let him take the reins building his Pinewood Derby car. But, it was and should always be a team event between the boy and his parent. Not only are you teaching him and providing him with a sense of accomplishment, you are also there as a backstop and a somewhat subject matter expert when he really needs help.
Too many people try to go it alone without the help of a financial planner. Either people think that they do not need help, can do it themselves, or can’t afford to hire a financial planner. These arguments, of course, are extremely flawed. Everyone could benefit from a little help from teammates now and again, and help from a financial planner is no different.