Investing Confidence Returning to High Net Worth Investors

Three out of 10 high net worth investors said “I feel more optimistic about my financial future” in 2004, compared to only 18% responding the same last year.   In fact, the latest reading is a reversal of a downward trend in financial confidence that has seen optimism fall from 40% in 2000 to the aforementioned 18% reading, according to the 5th annual Phoenix Wealth Survey, conducted by The Phoenix Companies, Inc.

Even with greater warm fuzzies about their financial situation, high net worth individuals are far from comfortable with their current savings nest egg.   Only 34% said they have achieved their goal of “assuring a comfortable retirement.”    Asked what a comfortable level of income is for retirement, 77% of high net worth individuals said at least 80% of their current income.  

The uneasiness with their retirement savings may have to do with a lack of advisor involvement as nearly half (42%) said their advisor is not helping them with retirement planning and 50% said they make their own decision about money investments.  

“The high net worth often measure themselves in terms of growth in assets. The recent gains in the market translates into affluent clients feeling more confident about their finances and overall investing abilities,” said John Sharry, senior vice president, Marketing and Asset Management Distribution, The Phoenix Companies, Inc. “The irony here is this same group reports they aren’t ready for retirement and the majority don’t have a formal financial plan. There appears to be some resignation among the high net worth that they will have to depend on themselves, even though they really require the services of an advisor to get them moving forward toward their bigger financial goals,” said Sharry.