Saving Is A Marathon, Not A Sprint

Saving Is A Marathon, Not A Sprint

This week more than 35,000 runners – and nearly a million volunteers and spectators – congregated in Massachusetts for the 118th Boston Athletic Association Marathon.  After last year’s marathon was scarred by the tragic bombings that killed three and injured more than 260, the runners, the nation and the world have returned to Boston to take back the finish line with renewed passion, united under the slogan Boston Strong.

Some runners began their journey with the hope of losing weight, while some may have set their sights on completing a fun run with friends. Others set out with a dream to run a full 26.2-mile marathon, or to qualify for a prestigious race such as the Boston Marathon.

Both runners and retirement investors alike should aim for their finish line goals by viewing them as a long-term effort. In investing, just like in running, the course will have its ups and downs. The past month has seen the stock markets swinging hundreds of points a day in either direction, just as drastic weather adjustments have impacted runners’ training schedules.

Gauge your investment progress in intervals of years or decades instead of monitoring your investments continuously to avoid impulse reactions or fatigue. Even elite runners have a bad race from time to time, but that doesn’t make them any less capable of running or meeting their goals at their race.

Runners will typically adjust their training plans when facing a life-changing event or injury. Similarly, you should review your retirement plan when experiencing the birth of a child, an empty nest, retirement, divorce, widowhood, illness, disability or the death of a spouse, parent or child. That doesn’t mean you give up on your goals; you just readjust them for the next race life hands you.

Model after the pros, stick to strict training schedules and employ a coach to help create a plan that meets your individual goals. If you’re looking for one-on-one guidance, call your financial advisor today for an appointment or review of your retirement plan. With the right passion, discipline and coach, you’ll be well on your way to reaching your retirement marathon finish line.

FINANCIAL FACTS

Sign Up – If your 65th birthday is today (e.g., DOB April 21, 1949), you may sign up for Medicare. Your initial Medicare enrollment period is seven months long, running from three months before your birthday month (April in this example) to three months after your birthday month, i.e., the seven months from Jan. 1, 2014, to July 31, 2014 (source: Medicare, BTN Research). 

Backstop – There are guarantee associations in all 50 states to protect policyholders in the event a life insurance company becomes insolvent. Most states guarantee life insurance death benefits up to $300,000 (source: National Organization of Life and Health Insurance Guaranty Associations, BTN Research). 

For One Year? – The average private college costs $40,917 for tuition, fees, room and board for the current school year (2013-14), more than a two and a half times increase over the $15,795 average cost from 20 years ago (1993-94 school year). If the same rate of inflation (4.9 percent per year) over the past 20 years occurs over the next 20 years, an average private college will cost $105,996 for the single school year of 2033-2034 (source: College Board, BTN Research).