Advisers Boost Retirement Confidence
Art by Andrea Chronopoulos
According to the Legg Mason Global Investment Survey 2018, investors who work with a financial adviser are more than twice as confident as are self-directed investors that they will have the money to afford a comfortable life in retirement.
Further, advised investors said they are more confident their investments will perform well in the coming year. They also reported having more diversified portfolios, less reliance on U.S. stocks and greater willingness to invest in environmental, social and governance (ESG) products than did “DIY [do-it-yourself] investors.”
Still, only 39% of investors with an adviser said they are “very confident” about affording a comfortable retirement, compared with 13% of those without one. Among the less confident group overall, 20% without an adviser were “very concerned” as to affording a secure retirement, compared with only 11% of those with an adviser.
Forty-four percent of advised investors said they view volatility, if managed properly, as a positive. Only 27% of DIY investors shared this view.
Seventy-two percent of investors with an adviser said they are confident about their investments for the next 12 months, with 32% saying “very confident.” Only 52% of the DIY group claimed to be confident about their investments and a mere 7%, “very confident.” Sixty-one percent of the advised group said they plan to increase their contributions over the next five years, true for only 34% of the DIY group.
Additionally, 60% of advised investors responded that U.S. equities will offer the best opportunity over the next 12 months, compared with 44% of the DIYers.
Advised investors are also more likely than DIY investors to diversify their portfolio. Thirty-one percent vs. 18%, respectively, said they have money in real estate; 24% vs. 13% in domestic bonds; 21% vs. 11% in gold and metals; and 14% vs. 1% in international bonds.
How Investors Gain by Working With an Adviser
