We conducted a survey of 1,001 investors, age 55-75, with $250K to $1M in investable assets who currently work with a financial professional. The purpose of this study was to examine the attitudes of these investors following the difficulties of 2022, in which the traditional 60/40 approach to asset allocation failed.
The results we obtained were definitive and compelling. We’ve reproduced the key findings for you here so you can see for yourself that these numbers clearly indicate today’s investors are ready to start the Allocation Conversation!
Investors'
current
conditions
Given recent market volatility and interest rate upheaval, investors are seeking stability.
6 in 10 investors
experienced a decrease in their portfolio in 2022
Of those, almost half experienced a decline greater than 10%. 65% have heard of the 60/40 strategy.
Today...
92%
of investors are concerned about volatility, recession or high interest.
And...
70%
have discussed putting a portion of their portfolio into a product that protects their investment.
But only...
50%
believe they are adequately protected from a market downturn.
What
investors
want
Respondents say their top priority is creating or utilizing a retirement income plan that provides lifetime income.
86%
86%
say PROTECTING investments to limit downside risk is important overall.
64%
64%
say PROTECTING assets is most important.
36%
36%
say GROWING assets is most important.
Breakdown: Here’s what they consider most important for meeting their retirement goals…
90%
Investments that provide a consistent, stable rate of return
88%
Protection of initial investment (principal protection)
87%
Investments that provide a steady income stream in retirement
86%
Guaranteed income (other than a pension or Social Security)
86%
Protection from declines in the market
32%
Investments that have growth potential, but with higher risk
What
investors
are doing
Today's investors are looking for allocation strategies that can add certainty to their portfolio.
66%
of investors
have discussed a strategy that insulates from investment loss with their financial professional.
Nearly
70%
of investors have had their financial professional talk to them about diversifying their portfolio beyond stocks.
About
50%
of respondents have talked to their advisor about annuities in the past year.
Of those,
57%
either purchased an annuity or allocated more to an existing annuity.
“Gave me sound advice on how to protect my investment...”
“Actually told us how to protect our investments, and we did what he said.”
From investors
The best thing my financial professional did or said in 2022...
“Helped me to allocate more to fixed income equity and less to the high-risk portfolio...”
“Switched my asset to fixed annuity. Since the interest has risen, I am making more than I had before.”
“Said…you’ve got to hold and wait. As you pull money out of a down market, you are locking in the loss.”
Start a conversation with us!
For more information about our fixed index annuity strategies and client resources, contact your wholesaler or request a call.