Have you ever signed up to run a marathon? Have you ever thought about your long-term investment plans? These two topics might seem worlds apart, but the similarities between training and planning are closer than you think.
In May 2021, I ran my third marathon. On paper, any challenge seems achievable and even, dare I say it, enjoyable. Knowing the daunting journey I had ahead of me I began with my light training regime to build stamina, remind my muscles and mindset about long running sessions, and prepare myself for the challenge ahead.
With investments, I spend a good chunk of time working with my clients on the planning section, so they are fully prepared. We could call this their ‘light training’ into long-term financial investments.
Nobody would dream of running a marathon without a specific training schedule in place. The top athletes worldwide start setting their goals and then working out an action plan to help them achieve that.
Financial planning is no different. Setting goals is the foundation of planning; without it, you will never know when you have succeeded.
Planning for the life you want is as important to Brazil Financial as it is to you, and our client’s goals are always at the core of everything we offer. Finding out what matters the most is the first step in financial planning.
Whenever I put together my marathon action plans, I always set the end date in my calendar and work backwards. I knew the goal – to cross the finish line within a specific time – and I knew when I wanted this goal to be complete (May 2021).
Let’s say you want to buy a second property as a long-term investment. Homes for rental or holiday lets are an attractive way to invest your finances. Why do you want this second property? Is it for your family to use, such as a holiday home, or is it a business move and you plan to rent it out and make an income? The answer to these questions is your goal.
Once you know your goal, you can begin to work on the journey to achieving what you want. For me, it was a personalised training schedule. For you, it would be checking your current financial status and understanding precisely what you have in assets, portfolios, and other investments.
We outline a detailed strategy and fund performance illustrations with all our investment clients to ensure they align with your goals. We also provide an annual review meeting, so you have an accountability partner with you throughout your planning and investment journey.
If you want it, you must plan for it!
As with most things in life, you can come up against a challenge or two.
I was thwarted by an injury when I was well into my training schedule. This set my training back by nearly four weeks. As those days passed, I began to feel the bubbling sensation of uncertainty. Would I be still able to run? Would I be able to reach the finish line?
Financial planning and investment can also present you with challenges. Instead of leaving you feeling uncertain, we review and analyse a wide range of financial scenarios and recommend the best ones to match your goals.
Taking risks with your finances isn’t something many people are overly comfortable with, especially with current global equity markets. That’s why we complete a comprehensive risk profiling and review, so you know your investment is tailored around your capacity for risk.
Anticipating any challenges can help you overcome them without too much disruption. I knew that missing four weeks of training could impact my time across the finish line, but I also knew I had a plan to pick up (slowly) where I left off.
The uncertainty I’d felt weeks earlier came back in a wave as I stood on the starting line, but I was determined to achieve my goal.
I was pleased with my progress during the first half of the marathon. I may have even thought, ‘this is easy!’, but as I reached the halfway mark, my pace began to slow. The group I was running with started moving ahead of me until I ran solo.
All of a sudden, it wasn’t easy at all, and I began to struggle physically and mentally. At this point, I remembered the goal I had set for myself. I understood that my finish time might not be what I had set initially but finishing the race would be a great achievement after dealing with an injury.
I knew I’d hit a metaphorical wall, but from deep within, I could find the resilience to push myself and keep going.
When you begin your financial investment journey, you are essentially building financial resilience, including planning (goal setting), reviewing your assets, and the investment opportunities available to you.
A strong mindset is as valuable to your financial planning as it was for my marathon.
The entire ethos behind financial planning and investment is to be able to reap the rewards later in life. Whether your goal is to retire early, buy a holiday home, support your children or grandchildren, or something else.
I crossed the finish line in 3.51, and although that wasn’t my original goal, I was delighted to run and complete a Sub 4 Hour Marathon.
Helping my clients reap the rewards of their investments is important to me, but that first beer after the marathon was equally satisfying! I’ve signed up for my fourth marathon later in the year, so watch this space.
At Brazil Financial, we aim to inspire you through a mix of financial planning and coaching to make positive changes in your life. We use our DREAM methodology to look at your finances from your values, dreams, and objectives.
Discover – Where are you today, and where do you want to be in the future?
Realise – Identify your priorities and visualise your goals
Everest –There will be challenges, but we help you overcome them
Action – Agree and implement the financial plan to get you to where you want to be
Mentorship – Bringing together the financial and life plans of you and your family
If you’re ready to retire early, start building a financial plan, and live the DREAM, get in touch for a chat
Create your own dream financial plan with Rory, a Certified Financial Planner CPF® and Registered Life Planner RLP®
Financial Life Planning sessions are conducted face to face or over Zoom/Skype/Teams. Book your call today HERE.
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