Discover the importance of choosing the right type of investment for the goals you have.  Choosing the wrong one is almost like using a driver on the putting green! 

Most people, even if they don't play golf, have a basic understanding of the game.  For those who don't, the object of the game is to hit a little white ball with various golf clubs designed for the position on the course, in as few strokes as possible, with the destination being a hole just a little bigger than the ball located in an area called a green.  It's very important to avoid the hazards along the way such as water, sand trap, trees, and sometimes people, which will surely increase strokes and decrease the probability of a good score. 

In most cases a club called a driver is used for the first shot off of a tee because it provides the most distance.  However, accuracy is decreased as distance is increased.  There are many different clubs used as one approaches the hole and club selection is very important.  Once on the green, accuracy becomes much more important than distance so one uses a putter to finally put the ball in the hole.

There are a lot of analogies that can be used comparing the game of golf to the serious task of planning for a successful financial future.

For example, you wouldn't use a driver on the putting green.  It wasn't designed for that purpose.  You also wouldn't use a putter to drive the ball off the tee for the same reason.  Yet many people are doing just that when choosing investment products.  It's important to use a particular product for the purpose designed. 

CD's and Money Market Funds are the putters of the investment world.  Stocks and stock mutual funds are the drivers.  As one approaches the green, various clubs providing various degrees of distance and accuracy are used.

It makes sense then, from the preceding paragraph, that you must have more than one club in your bag.  It's impossible to be successful using only one club. 

The key word is diversification.  Have numerous clubs in your bag that together will get you to the hole in the fewest number of strokes while avoiding the hazards along the way.

In all this talk about clubs, it's important to understand that the swing is much more important than the club.  If someone gave me the newest and best designed driver made, it still would not improve my game very much.  On the other hand, if I spent time with a good teaching pro improving my swing, learning which club to use in each situation, and how to stay out or get out of the hazards that are sure to be present on each hole, my game could improve tremendously.  It is how I use the club and how I select the clubs to be used in each situation that will ultimately improve my game the most.

So it is when planning for a successful financial future.  We must be aware of all the products available and their purpose.  We must also choose and use(swing) the products  for maximum effectiveness.

So in summary:

• Use the proper club
• Have more than one club in your bag
• Remember that the swing is much more important than the club

We at Christian Financial Principles can help you become successful by explaining the various financial products and telling you the pros and cons of each one (yes - there are cons to almost every product), by offering more than one product or a combination of products, and most importantly, by teaching you how to swing those products for maximum effectiveness.