The Blessing and Curse of "Great Benefits"

The Blessing and Curse of "Great Benefits"

January 09, 2022

ARCHIVED BLOG, PLEASE NOTE:  The information below was posted prior to any affiliation with LPL Financial and is posted here for historical purposes only

The Blessing and Curse of “Great Benefits”

One of the most significant advantages of working at the University of Michigan is the exceptional benefits and retirement package. One of the most significant DISadvantages of working at the University of Michigan is the exceptional benefits and retirement package provided.

The challenge with great benefits is that it creates a false perception for many employees that they “don’t need to worry.” I have had countless conversations with individuals that have never done any long-term planning their whole careers because they were under the presumption that working at UofM eliminated the need for this type of planning. They have heard from their colleagues for years and, in some cases decades, that they will be “ok” just because of their great benefits.

It is undoubtedly true that having a 2 for 1 match puts you in a better position to retire than individuals working at an employer with little or no match. However, you may not end up at your desired destination without proper planning. Simply being “retirement eligible” does not indicate whether you are on track to retire the way you WANT to retire. If retiring at age 62 meant you had to live on $500/month less than you are used to while working, would you still want to retire? For some people, the answer is yes. Others would instead work a little longer to eliminate the need to take a “pay cut.” Wouldn’t it be helpful to know your options before making such a significant decision?

If you were to build a custom home, would you have blind faith in your builder to start throwing up walls, or would you meet with an architect as many times as needed to get the house designed the way you WANT it designed? While this seems intuitive when building a home, most people overlook the importance of planning similarly for something as crucial as their upcoming retirement.

While none of us have the power to go back in time and start planning sooner, we ALL have control over what we decide to do today. If you are interested in learning how the DNA Process can bring clarity to your financial picture, please reach out to for a complimentary consultation.

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