Investors Look to Financial Advisors for Help in Navigating Risks

Investors are eager for more help and education regarding income investment planning, and their advisors can play a key role in helping them guard their gains, according to a new survey.

As part of an ongoing effort to assess the scope and complexity of investors’ needs and desired outcomes, Nuveen conducted a survey of more than 1,000 high-net-worth investors, which found that a majority of investors (58%) has a positive economic outlook heading into 2018 — similar to the 57% who had a positive outlook for 2017 and a substantial improvement from the 38% cited in 2015.

Many investor respondents believe they have done well financially, in part because of the stock market boom of 2017. Moreover, 67% of respondents have a positive outlook on their household financial situation, compared to 54% in 2015.

But against this backdrop, investor respondents also revealed that their greatest concern centered on the loss of their income due to investment risk. The vast majority of investors (77%) agree that the broader economic situation is making investing more complex.

Moreover, 56% of investor respondents indicated that in the next six months they would like to discuss with their financial advisors pursuing a portfolio that can generate a steady stream of cash income while seeking to preserve capital.

When it comes to portfolio risk, 80% of investors either always or sometimes pay attention to investment risk. But that concern appears to decline when it comes to considering ways to guard income investment gains by addressing other portfolio risks:

  • 72% consider inflation risk as it applies to their portfolios;
  • 69% of investors consider income volatility;
  • 68% of investors cited interest rate risk;
  • 66% expressed concern over uncertainty associated with taxes; and
  • 46% of investors consider credit risk.

The study also notes that 77% of investor respondents rely on a financial advisor to either a moderate or a great degree to help with retirement income planning, and that by addressing these risks they could help guard their client’s portfolio gains.

“Financial advisors are uniquely positioned to help clients understand and address the various risks that can chip away at the gains made in their clients’ income-focused portfolios, not just protect against loss,” the study emphasizes.

The survey was conducted online by The Harris Poll on behalf of Nuveen within the U.S. between Feb. 22 and March 8, 2018, among 1,010 U.S. adults aged 21+ with at least $100,000 in investable assets.

Post a Comment

Your email is never published nor shared. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Send this to a friend