Running a Marathon
No one knows how long we are going to live, but what we do know is that we will be sprinting through certain parts of it, leisurely strolling at other times, and embarking on several marathons along the way.
The first marathon in ancient Greece is said to have taken place in 490 BC, when Pheidippides ran from the battlefield at Marathon to Athens to announce the Athenian victory over the Persians.
All marathon runners know that they have to pace themselves so they can cross the finish line in a reasonable amount of time. If they run too fast, they might run out of steam, and if they go too slow, they will never finish.
The modern distance for a marathon of 26.219 miles was set by the International Amateur Athletic Federation (IAAF) in May 1921 directly from the length used at the 1908 Summer Olympics in London. Fortunately, life marathons are not measured by distance but rather in time measured in years instead, so there is far less pressure. This gives us the time to plan, train and make adjustments along the way if we have to. We can even set our own distance. The key is simply, to finish.
Retirement planning is one such life marathon, and the one that most of us will have to participate in - like it or not. Depending on when we start, it can be slow and leisurely, or if we start too late, treacherously painful and grueling, and full of potholes and pitfalls along the way. The beauty about this marathon though, is that you can decide on both the distance (the calendar year) and the end goal (choice of lifestyle measured in $).
The potholes and pitfalls include times when the financial markets go through a downturn or when there is the temptation of taking on more risk, thinking that you might get there faster. A WARNING - there are no shortcuts in this marathon. As your trainer, coach and guide, our job is to help you design the course, calculate the distance, and set the pace to make sure you get there with enough resources to spare, to take on the next challenge, whatever that might be.
One final word of advice - every once in a while there will be times when the market will get way ahead of itself and create the illusion that it will maintain this momentum forever. Believe me, it won’t. So be prepared to encounter a pothole or two while it takes some time out. As an example, here we are with the S&P/TSX up over 15% knowing full well that we will probably have to give some of this back before the end of year.
It’s okay…remember, this is a marathon you are running.
David J. Angas, CEA®
Senior Vice President, Financial Advisor
Family Wealth Counsel Advisor Group/Raymond James Ltd.
The views are those of the author, David Angas, and not necessarily those of Raymond James Ltd. Investors considering any investment should consult with their Investment Advisor to ensure that it is suitable for the investor’s circumstances and risk tolerance before making any investment decision. Raymond James Ltd. is a Member - Canadian Investor Protection Fund.
