Have you ever committed to something and halfway there think, “Oh, that was a bad decision?” Well, you have my absolute sympathies! I signed up for the Savannah Rock ‘n’ Roll Half Marathon – my first half marathon ever – and before this year I had never breached the four-mile mark. After an attempt at seven miles, about eight weeks out from the race, my only thought was, “I will be lucky to finish this thing alive.”
I’m happy to say I pushed through my mental hitches and stuck it out. Eight weeks and one long race later, I not only finished the whole 13.1 miles, but I broke the two-hour mark! As I basked in my achievement and the challenge, I realized it was reminiscent of our financial investment journey. You often hear that investing for the long term is not a sprint, but a marathon. I found that the keys to reaching my marathon goals could also apply to reaching investment goals.
Keys to Running for the Finish Line:
- Preparation: Commit to a consistent training schedule and find someone to encourage and cheer you on.
- Mental Preparation: Remind yourself of the goal, not the immediate struggle.
- Pacing: Run mile 1 like mile 13.
- Nutrition: Know what your body needs for optimal performance.
Keys to Investing for the Finish Line:
- Preparation: Educate yourself and seek out a trusted advisor that will add value, hold your emotions in check, and communicate regularly.
- Mental Preparation: With each correction, remind yourself of your long-term financial goal and avoid emotional responses.
- Pacing: Don’t try to time the market; stay the course by automating savings and investing consistently by using “Dollar-Cost Averaging,” for example.
- Nutrition: Know what you’re putting into your portfolio by understanding, “How to Read a Mutual Fund or ETF Shareholder Report.”
Too often investors get in the way of themselves and their goals by simply mismanaging their wealth. Don’t be your biggest hindrance – just as you would train for any physical challenge, you can train yourself for financial discipline. And don’t forget to do a celebratory dance when you cross that finish line!
Philip Tull recently received his Master of Financial Planning from Kansas State University, and will soon sit for the CFP® exam. He is a skilled soccer player and coach, an avid snowboarder, and a fearless fisherman. One of his goals is to make sure his Millennial peers don’t spend the rest of their lives living in basements – whether real or proverbial.
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