While it may be easy to assume that Millionaires feel well prepared for retirement, it seems that they are equally concerned about making sure they have made the correct investment choices. In fact, regardless of age, millionaires want to make sure that when it is time to retire, they will be assured of a specific guaranteed income.
In research just released from Spectrem Group regarding Retirement Attitudes of Millionaires, 72% of Millionaires indicated they wanted to have a guaranteed monthly income during retirement. Opinions were relatively similar regardless of age. How are they going to achieve this guaranteed income?
Sixty nine percent of Millionaires were confident that the choice of investments that they had made within their retirement plan would produce a good return. Additionally, the same percentage felt they had a well defined plan for their retirement plan assets. Younger Millionaires were slightly less confident.
Only 47% of Millionaires want a guaranteed return on their retirement plan investments. They don’t want to take a chance of losing money. Interestingly, younger investors were more concerned about losing money than older investors.
What should non-Millionaires do to plan for retirement?
1. Discuss with your investment advisor how your retirement plan assets are invested. Make sure it is complementary to the rest of your investment portfolio.
2. Dependent upon the type of business you may be involved in, make sure that you are maximizing the amount that can be contributed to a retirement plan. Are you a small business owner? Would a Keogh be appropriate?
3. Show your advisor the investments available within your plan. He or she may be able to identify if some better options are available from the available menu.
4. Work to identify the appropriate income strategy that works for you. Your advisor should be able to recommend several available options.