Derek Jeter, the iconic star of the New York Yankees, retired this season after 20 years in the major leagues. Many attributes displayed by Jeter during his baseball career translate to the investment arena. For example:
1. Don't try to hit home runs. If you're trying to make a killing in the stock market, you're more likely to strike out than connect. Instead of "swinging for the fences," aim for solid singles up the middle.
2. Be a leader. Don't automatically follow the rest of the crowd. The Yankee captain set the tone for his team. Similarly, you should build your investment plan according to your personal circumstances.
3. Stay balanced at the plate. Unlike some of baseball's sluggers, Jeter's balanced approach made it difficult to get him out. Through asset allocation and diversification, you may be able to reduce investment risks. Also, remain flexible enough to make adjustments when they're needed.
4. Keep an even keel. Jeter didn't wilt under the pressure of the playoffs and World Series. It's important to stay cool, calm, and collected during the inevitable ups and downs of the stock market.
5. Plan ahead for a comfortable retirement. Jeter was able to go out in a blaze of glory on his own terms. If you stick to your investment principles, you have a better shot of achieving your own retirement goals.