Just in time for Halloween, it’s a fright to scare us all (yet it’s also another reason why advisors are so critically important).
A new survey from online trading platform Ally Invest finds that nearly two-thirds of survey respondents find investing in the stock market to be scary and/or intimidating, up from 61 percent in a similar survey during the same time last year.
Fear is highest among Gen Z and millennial consumers: 69 percent for those between the ages of 18 and 23, and 66 percent for those ages 24 to 37.
Most U.S. adults say they worry about whether they are doing the right thing. In addition to concerns around investing, most respondents say they’ll rely on Social Security in retirement but have doubts the program will still be available in the future.
So what, specifically, are they scared of?
- Making a wrong call: Over half of those polled are scared of the thought of making a bad investment and losing money.
- Trusting the wrong source: One-third of respondents are scared of not knowing whom to trust for advice.
- Lacking the funds: One-third find the amount of money required to invest scary.
- Knowing where to start: Over one-quarter are scared about not knowing how to get started.
- Having the time: 19 percent are scared about the time it takes to invest properly.
- Timing it wrong: 17 percent are scared the market has passed them by and is going to go down.
What sources are people currently planning to rely on for retirement?
- Social Security: Three in five
- Savings: Over two in five
- 401k: One-third
- Pension: Nearly one-quarter
- Investments in stocks and bonds: Nearly one-quarter
- IRA: One in five
- Real Estate/Home Sale: One in 10
Perhaps most frightening, one in 10 say “nothing,” and they will rely on none of these because they are not planning to retire.