For more stories like this, sign up for the PLANSPONSOR NEWSDash daily newsletter.
Recession Delays Many Americans' Retirement
According to the latest Quicken Fiscal Literacy Survey, the bad economic times have also prompted 42% of respondents to conserve wealth by increasing the amount of cash in their retirement portfolios.
Another 36% said they’ve chosen to decrease their risk exposure while a third of high-income Americans have left their portfolio alone.
The survey findings also reveal that:
- a quarter of investors have more than 41% in stocks that move independently of market indices,
- about a third decided to diversify by investing in as many as a dozen stocks,
- while 3% of respondents said they would need as many as 50 stocks to do the job
According to the survey, almost two thirds said they’ve left their non-retirement investments alone. Of those who have tinkered with their non-retirement portfolio, 18% moved into less risky investments while 12% expanded their cash positions.
Crystal Ball Gazing
Even though the economy has hurt many Americans, the survey found a high level of optimism about the future. Some 62% predicted a turnaround sometime this year while a quarter of those investors pointed to the third quarter as their expected economic pickup.
In terms of market sectors investors found attractive:
- nearly half or 49% of investors expect high or extremely high growth in the health care sector,
- ranking a close second was the tech sector at 42%,
- consumer goods was the favorite of 17%,
- while retail attracted 15%
Focusing on specific asset classes, investors polled
believe domestic stocks have the best growth potential with
22% favoring value stocks and 21% siding with growth
issues. Only 11% specified international stocks.
The Quicken survey was conducted by International Communications Research in December 2001 among 500 Americans who are active investors and who have an annual household income of $75,000.
You Might Also Like:
« Judge: ERISA Does Not Prevent Participant's Medical Malpractice Claim