Natixis Sees a Lack of Realism in Individual Investor Expectations

Natixis published its fourth Global Survey of Individual Investors today. They reached 7,000 investors in 17 countries.,0.pdf

Many of the findings show that individuals are unrealistic and confused. Individual investors say they need 9.7% returns above inflation to meet their goals, which is higher than last year, although 84% said they would choose safety over performance, also higher than last year.

Among respondents, 57% said they had NO financial goals, 67% have NO financial plans, and 77% rely on gut instincts to make investment decisions. Despite this admitted lack of planning, 66% of respondents claimed strong knowledge of the income they would need in retirement: namely, 63% of pre-retirement income, which is less than the 75% to 80% that many advisers recommend.

Friends, if you would have answered the same way on any of these questions, call or email me. We can help you plan for the future. If costs are an issue, these findings show that the only thing more expensive than a financial adviser is the lack of a financial adviser.

It is no wonder that Natixis draws one clear conclusion from the survey:

One thing is clear: Now is the time to help investors set clear goals and plans, while also enhancing their knowledge and understanding of markets, investments and strategies to help them meet their goals.

PAR Wealth Management employs goals-based planning and asset allocation to help you define and reach your goals. PAR Wealth Management offers you access to Money Guide Pro, the top goals-based planning software for advisers and their clients, and Yodlee, a leading account aggregation tool, so that you can see all of your assets and real-time progress toward your goals with one login (marketable securities are updated real time across all accounts no matter where the assets are held).

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