Even the Rich Worry about Retirement Wealth
Published on January 25, 2016
Even the wealthy among us have concerns about what their financial lives will be like when they retire. Seems hard to imagine that someone of high net worth would be in that position but a LIMRA Secure Retirement Institute study reports that respondents at three different levels of wealth ($500,000 to $999,999, $1 million to $3.5 million, and $3.5 million-plus) were not fully confident about maintaining their lifestyle during retirement. The study revealed that only 40 percent of respondents were “strongly confident” that they’d be able to sustain their current lifestyle once they stop working.
What’s got these wealthy folks worried?
- Market volatility – the turbulence in the world economy is affecting markets everywhere and the US stock markets have been on a real roller coaster in recent weeks.
- Rising inflation
- Longer lifespans in retirement –Americans are living longer and may have 20 years of retirement to pay for.
- Unexpected events that will use up savings and lead to lower standard of living – medical expenses and long term care are just one cost of living factor that can eat up retirement savings.
The study also asked respondents about whether or not they have a financial plan—only about half of them said yes. Of those with a written financial plan, 30 percent reported feeling “extremely well prepared” for retirement, and 54 percent said they feel “very confident” about life in retirement.
Stop worrying … and start self-directing your retirement
Having a strong financial plan is one important way to prepare for your retirement years, regardless of your income level. Another great way to plan for your future—and avert the market volatility of stocks, bonds and mutual funds—is to include alternative assets in a self-directed retirement plan.
For savvy investors who might already be investing in these assets outside of their regular retirement plan, self-direction can be a great way to ease retirement worries by taking control of your investments. Self-directed investors make all their own investment decisions, based on assets they already know and understand, and they have the potential to build a more lucrative retirement nest egg (and certainly a more eclectic investment portfolio).
So, money doesn’t buy happiness and based on this study, it doesn’t buy peace of mind regarding retirement savings, either. But those investors who wish to control their futures through a self-directed IRA can eliminate some of the worry by investing in a broad array of nontraditional investments.
Even better, the professionals at Next Generation Trust Services are here to make your self-directed investing experience a happy one. Our transaction specialists will ensure you are investing within IRS guidelines and will expedite your transactions efficiently. Our helpful staff is cross-trained so everyone can answer your questions and get you to the right person to help you as needed. And our Starter Kits and other online tools make opening a new account easy.
Have a question about self-directed retirement plans? Contact Next Generation Trust Services at 888-857-8058 or Info@NextGenerationTrust.com