The Keep Your Money Yours survey, underwritten by Wilmington Trust for Chief Executive magazine found that:
- only 41% of CEOs rely strongly on professionals to help them meet their financial goals
- 38% turn to financial advisors some of the time
- one in five consult these professionals rarely or not at all.
Top Job, Top Goals
The survey also reveals that:
- some 64% list funding retirement as their top financial goal
- followed by family protection, cited by 45%
- building a sizable portfolio was listed by 32%
- some 17% mentioned funding their children’s education
- minimizing taxes was cited by 16%
- just over 10% listed leaving an estate.
Many executives fail to minimize taxes on savings and investments, with only 28% deferring ordinary income.
Fewer than 50% buy government bonds, maximize their adjusted gross income, use tax-deferred investments or offset capital gains with losses and just over half maximize tax deductions and consult professionals for tax advice. However, more than two-thirds make IRA or 401(k) contributions.
Retirement is a primary concern for survey respondents since their golden years are fast approaching:
- one in five respondents is within three years of retirement
- two-fifths have three to nine years until retirement
- about one-third have 10 or more years to go.
Almost half expect their retirement needs to remain in line with their current income levels. However, employer-sponsored retirement plans are no longer expected to fund the bulk of their retirement needs, with more than half saying it will cover less than 40% of required income.