When I ran the Columbus Marathon in 2008, I was Coming Home!  I grew up in Columbus and graduated from Ohio University in Athens, but I moved to Florida right after graduation…which was a L-O-N-G time ago.  I've been back for some family events and Buckeye football games, but haven't spent much time there in a long time.

My "bucket list" includes completing a marathon in all 50 states.  When our small running group was deciding on an event for last fall, I was able to get them to choose Columbus.  Going home!   See some old friends and family, show my wife where I grew up, and literally run down Memory Lane…through the streets of where I spent my early life. 

In the introduction to this "Investing for the Long Run" series, I touched on the similarities between investing and running a marathon.  Goals, a plan, discipline, pain and rewards were the broad ideas.  I promised to touch on each one in follow up articles.  For now, I want to discuss goals. 

I had a specific, measurable goal for my Columbus Marathon.  I wanted to PR (Personal Record) on my "home" course with my old friends and family there.  I didn't care if I beat my previous best by one minute, I just wanted to PR.  Some might say the goal wasn't specific enough.  In 14 marathons before this one, my previous best was 4 hours, 29 minutes (I didn't say I was fast!).  My goal was 4:28 or better.  It was pretty specific for me. 

When you are investing, goals are also important.  Important, but too often they are very vague.  "I'm saving for retirement" is pretty vague.  When do you want to retire?  How much will you need to retire?  What rate of return do you need to get you there? 

Instead, you might say…"I plan to retire on my 65th birthday.  I need $75,000 a year in income to maintain my lifestyle.  With what I have now, and my future savings, I need to earn an average of 6% on my portfolio."  That's a much more specific goal. 

When you have a specific goal, in running or investing, you can develop a plan with step-by-step (pun intended) actions to get you there.    

When I ran Columbus, I knew that I had to average a 10 minute and 13 second per mile pace for the 26.2 miles.  So, my training included long runs at marathon pace, tempo runs to teach my body to run faster, and interval training sessions to increase fitness and endurance. 

In your retirement goal example above, your plan may include action steps like increasing the amount you are saving and making sure you are allocating your investments properly to increase the odds of reaching your 6% return goal, while avoiding unnecessary risk.  

During the marathon, I was constantly monitoring how I felt, both physically and emotionally; the conditions on the course; and my pace at different checkpoints.  It works the same way in investing.  As you monitor your portfolio, you will see if you are ahead of plan, or behind.  You'll see when your portfolio gets out of balance and needs adjustment.  Life will change your plan, but if you focus on your goal, and adjust accordingly, you increase your odds of having a successful investment experience. 

And when you are running a marathon, if you stay focused on your goal during training and your event, you may have to adjust your plan along the way, but you will increase your odds of having a successful marathon experience. 

So, did I PR?  I'll let you know later in this series.  Next week, we'll discuss how following a marathon training plan is similar to following an investment plan.   

Until then, remember that life is not a sprint, it's a marathon!