Novice investors’ reactions to stock market volatility present an endless and intriguing field of study for behavioral economists, but for financial advisers, poor client decisionmaking is a serious issue.
CPA financial planners say Americans are also concerned about maintaining their lifestyle and not being able to meet rising health care costs.
Despite a global economic slowdown and increased trade tensions, most major asset managers are not predicting an imminent recession—instead they are urging clients to embrace diversification and stick to long-term strategies.
They also foresee continued volatility in the stock market, but are turning to active management and alternative strategies to mitigate its risk.
And a majority, 65%, say it is tougher now to get ahead financially than it was before the financial crisis, Natixis found in a survey.
They have also become more inclined to work with an adviser since the Great Recession of 2008.
More advisers are turning to alternatives, according to a report from BNY Mellon | Pershing.
An Allianz Life study found that while there was an increase in comfort with the market, workers continue to worry about their retirement savings.
Besides providing investment advice, 88% of advisers think they need to guide clients through emotional decisions.
Paying off debt is their second greatest fear, Franklin Templeton found in a survey.
While 80% of investors say their adviser discusses risk tolerance, only 50% say they bring up the subject of guaranteed lifetime income.
EBRI's longer-term 401(k) account balance statistics offer hope for participants to help them withstand market volatility.
Turning to opportunistic allocations and alternative investments, they expect average returns of 7.2% this year, Natixis found in a survey.