Financial planning lessons from a World Cup-winning coach

Lee Nakan, Kuseni Dlamini, Jake White, Tumi Morake, Ian Williamson

Lee Naken, Mirnette Liebenberg, Shabnum Hamid, Renette Breytenbach, Ian Williamson

Jake White recently inspired financial advisers and customers at the Old Mutual road show that happened across the country in May and June by drawing parallels between coaching to becoming world champions and achieving financial greatness through financial planning.

Rugby is so much part of South African life that using it to illustrate a few lessons about financial planning makes excellent sense. But it’s also logical: there are so many parallels between planning your finances and coaching a rugby team. And who better to learn from than Jake White, the national coach under whom the Springboks won the Rugby World Cup in 2007?

His book, In Black and White: The Jake White Story, recounts White’s rise from a poor childhood to leading the national team to the famed Webb Ellis Cup, beating England 15-6 in the final. But it also details a few crucial lessons that we ordinary South Africans can use in building the kind of financial plans that enable us and our families to do great things.

The first lesson is planning: in his book, White notes that he was heavily criticised for his choice of players, especially when the Springboks were thumped 40-0 by Australia in 2006. In a nation where every citizen seems to be a rugby expert, sticking to your plans takes an extraordinary blend of vision, perseverance and insight.

And when the front pages of the Sunday papers call for your resignation, you need real self-belief to not wonder if you should find a less stressful way to make a living. The BBC’s Phil Gordos calls it “arguably the toughest job in world sport”.

In terms of financial planning, everyone seems to know someone who’ll give you a 50% return on your investment within six months. It’s alarming how often these offers manifest at around the time people retire or have access to their pension. But the folly of get-rich-quick investments are well-documented. It’s far wiser to stick with the maxim of “time in the market, not timing the market” and to rely on time-proven, sober advice.

Similarly, your financial planning should take into account where you are in life. In the early years of your investment it may take some time to double the value of your contributions. But the longer you invest, the shorter the time it takes for your investment to double, and then double again. By then you’re not only earning interest on your contributions but on the many years of interest too.

Simply put, planning your financial future means giving you a head start, like kicking off a match with 15 points on the scoreboard.

That said, there’s a time for innovation: the Springboks bounced back from the 40-0 drubbing after White and his team scrutinised the performance of the Super 14 sides, especially the finalists, the Bulls and the Sharks. White chose many of his players for the 2007 season from those two sides and the players rewarded his confidence with a number of wins, including scoreboards reading 55-10 and 55-22 over England and 35-8 over Samoa.

In the same way, innovation has its place when planning your finances. For instance, a professional adviser would assist you to invest at every stage of your life in the most tax-efficient way.

The third major lesson is experience: a number of factors saw White go from being a physics teacher to a household name and a sporting icon. One crucial factor was the experience of the team that supported him. White’s team of experts rewarded his confidence in them by supporting him during some difficult moments involving not only defeat on the field, but the interference of sports administrators.

It enabled him to steer the Springboks to first place in the IRB world rankings in 2007 after starting off in sixth place when he took over in 2004. This leap ended the formidable All Blacks’ 40-month reign at the top of the log.

Rugby365’s book reviewer wrote: “The biggest testimony to the rightness of Jake's actions was the support of his players and the others on his coaching staff. He was loyal to his squad and they were loyal to him.” In rugby and in financial planning, experience should lead to success and success should lead to loyalty.

Banking on experience when planning your finances gives you peace of mind. It’s advisable to invest with a financial services provider who has a proven track record and is registered with the Financial Services Board.

A good financial adviser can help you establish if you’re managing your debt and how to meet the financial needs of your family, whether you already have children or plan to have them one day.

Above all, sound advice based on good planning, carefully considered innovation and experience allows you to relax in the knowledge that your financial future is in good hands. That means you can devote more time doing what you enjoy, such as cheering on your rugby team and, at times, telling the coach on your TV screen that you could do a far better job than him.