By Khanyi Nzukuma, Chief Executive
This past weekend – 14 & 15 September – saw Capetonians take to the tar in their droves to take part in the annual Sanlam Cape Town Marathon. The first Cape Town Marathon (in its current format) was run in September 2007. In 2014 the name changed to the Sanlam Cape Town Marathon and it has become a highlight on the calendar of both serious and amateur runners alike.
Running along the Sea Point Promenade and breathing in the ocean air got me thinking about the many similarities between marathon running and investing.
- First and foremost, investing is a marathon, not a sprint. Building up an emergency fund or paying off high-interest debt could be seen as a sprint – but building a nest-egg and becoming financially free doesn’t happen overnight. Don’t worry if people overtake you along the way, either when running or investing. They’ve either trained harder and longer, or their personal circumstances are different. Keep your pace and stay the course. You’re running your race, not theirs.
- There’s something for everyone. While experienced runners line up to tackle the 42.2km race, those looking for a fun day in the sun can opt for the more leisurely 10km or even the 5km routes. Likewise with investing – there’s something for everyone and different products to suit different circumstances and requirements. You can start investing a small amount and increase your contributions as you go along. Similarly, you can start investing in products you’re familiar with, and branch out as you become more comfortable with the world of investing. The important thing is just to start, and as soon as possible.
- It’s not always plain sailing. Some days you seem to glide to the finish line and other days your legs don’t seem to want to take you further than a few kilometres. Your investment performance will show similar characteristics. Periods of outperformance can be followed by periods where the market returns are minimal – as we’ve seen locally over the past few years. The secret is not to be discouraged and to keep going no matter what. The reward ultimately goes to those who keep to their long-term investment strategy and ignore the short-term market movements along the way.
- Keep your goal in mind. It can be easy to get side-tracked. Having reached the mid-point of the race and then running along the route back to the finish area, my focus shifted from the race to the ocean on my left. As I watched the waves rolling in I realised my mind was no longer on the race and I wasn’t keeping track of my time. While it’s good to leave your investments to grow and not monitor the performance too frequently, it is equally important to know where you are on your journey and if you’re on track to realise your goals. Meeting with a qualified and objective financial adviser once a year to review your portfolio is a good way to ensure you stay on track.
- Lastly, remember to have fun. Investing for your future financial freedom shouldn’t be seen as a grudge purchase – it’s your future after all. Reward yourself along the way as you reach mini goals you’ve set for yourself. It’s not only about the medal – it’s about enjoying the journey as well.
To find out how Glacier by Sanlam can help you on your investment journey, speak to your adviser or visit www.glacier.co.za
For more information on the Sanlam Cape Town Marathon, visit www.capetownmarathon.com
