Lookout, the do-it-yourselfers are back. A new Wells Fargo Affluent Investor survey finds a majority of affluent investors say they are feeling good about their financial health and their ability to manage and invest their money. The silver lining is that many have less confidence on managing their money during market turbulence.
With much of their wealth in the stock market, more than half (54%) worry about losing money due to fluctuations in the market. The affluent are heavily invested in with a median of $450,000 in the market. One in five of all affluent investors are not sure how much they have in the stock market.
Four in 10 (39%) affluent investors don’t trust themselves to manage their own investments during market turbulence. This jumps to nearly half (49%) for affluent women and a third for men. Two-thirds (65%) of affluent investors look to a financial professional as the most trusted source for financial guidance or advice.
“A financial advisor’s ability to recognize and acknowledge a client’s natural response to market volatility is the key to making sure that rational perspective prevails, and that’s something that investors say they appreciate,” said Joe Nadreau, head of Innovation and Strategy for Wells Fargo Advisors.
Six in ten (61%) of the affluent currently work with a financial advisor. The advisor relationship is seen as a valued partnership. Nearly nine out of 10 with an advisor want their FA to be a partner in their financial planning, instead of just telling them what to do with their money. Seven in 10 say their financial advisor is as important to them as their doctor.
Despite their and confidence, affluent investors say there are a few things they wish they’d done better or differently when it comes to money. In looking back over 10 years, the most common regret was not “having made better investments.” Thirty-seven percent of the affluent agreed with that statement. The next two regrets showed contrasting views the affluent have on wealth. They regretted “not saving more and spending less” (29%) and “not having enjoyed their money more” (15%).
News:
- Major Retirement Fail: 80 Percent of Americans Can’t Pass Basic Quiz
- Survey Shows Hispanics Need Boost In Retirement Planning Knowledge
- LifeLock Introduces 401(k) Theft Protection for the Workplace
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
