CONTACT US
Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.
Craig Lundquist, MBA, ChFC®, CRPC®
VP of Wealth Management
651-773-2757
Kristin Becker
Senior Administrative Assistant
651-773-2821
Ideal Wealth Advisors
Located at Ideal Credit Union
8499 Tamarack Road
Woodbury, MN 55125
CRPC conferred by College for Financial Planning
January/February 2024
Can You Be Too Confident About Retirement?
Not that anyone should stay awake nights worrying about their retirement security, but overconfidence in the assets you project you’ll have for retirement can be your disadvantage. A 2023 study from the Center for Retirement Research at Boston College examined households’ self-assessed retirement preparedness and how it can influence retirement saving habits. The study used households in the National Retirement Risk Index.
Key Findings
Most households in the study had a good sense of whether they were on track for retirement, with 40% in good shape and knowing it and 20% in trouble and knowing it. That leaves another 40% in the “too worried” (mostly lower-income households) or "overconfident” categories. Both these groups aren’t saving enough. And it may come as a surprise that a third of higher-income families fell in the “overconfident” group. Why? Primarily, they’re misjudging how much their retirement income their assets can provide.Mistakes Made by Higher Income Households
Relying too Heavily on Home Value— The mistake is looking at the rising value of their home without considering how much they still owe on it. This was especially true for higher-earning households with more expensive houses. 23.8% of high-income households were affected by this factor, compared to only 7.6% of middle-income households.Discounting the Importance of Both Spouses Saving— If you and your spouse are employed and want to continue your standard of living into retirement, you’ll have to replace both incomes. Even if one of you works part-time, both of you need to participate in a retirement plan—either at work, if eligible, or with a traditional IRA. This factor is most prevalent among high-income households. With the start of the new year, it may be a good time to contact your financial professional to review your retirement planning for overconfidence or retirement investment opportunities you may be missing.
505521-2
Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Ideal Credit Union and Ideal Wealth Advisors are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using Ideal Wealth Advisors, and may also be employees of Ideal Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of Ideal Credit Union or Ideal Wealth Advisors. Securities and insurance offered through LPL or its affiliates are:
The sender and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.
The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.