'Investor fatigue' setting in as boomers tire of stock game

'Investor fatigue' setting in as boomers tire of stock game
Thrill of investing replaced by fear, trepidation, survey finds; 'constant worry'
JUL 09, 2012
Investing just isn't as much fun as it used to be for baby boomers, even for those who have plenty of money stashed away. For those with $5 million to $25 million in net worth, excluding their home, a bare majority at 52% said they enjoy investing and would not want to give it up. Those with less money are even less likely to enjoy playing the market, with only 43% of those with $1 million to $5 million calling it enjoyable and only a third of those with $1 million or less enjoying investing. That might have something to do with nagging concerns about personal finances as well as “investor fatigue” from the last several years of volatile markets, said Randy Wostratzky, director of the researcher Spectrem Group. “Investors have almost become tired of the constant worry that comes from being so involved, and many just can't seem to find strategies that they're happy with,” Mr. Wostratzky said. Spectrem Group, which frequently surveys affluent investors, noted a marked decrease in enthusiasm about investing from a few years ago, when two-thirds of the wealthier investors said they enjoyed investing. Spectrum's most recent online survey of around 1,900 affluent and wealthy investors was conducted between October 2011 and March 2012. The volatility of the last few years has left even affluent investors worried about whether they have enough. About three-fourths of those with $1 million or less said they worry about maintaining their current financial position. About 60% of ultrahigh-net-worth investors — those with $25 million or more — share that concern. More than half of those with less than $5 million worry whether they will have enough money for retirement and whether they will be able to retire on schedule. Spectrum also expects baby boomers to become increasingly concerned about taxes in coming years.

Latest News

SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees
SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees

Eliseo Prisno, a former Merrill advisor, allegedly collected unapproved fees from Filipino clients by secretly accessing their accounts at two separate brokerages.

Apella Wealth comes to Washington with Independence Wealth Advisors
Apella Wealth comes to Washington with Independence Wealth Advisors

The Harford, Connecticut-based RIA is expanding into a new market in the mid-Atlantic region while crossing another billion-dollar milestone.

Citi's Sieg sees rich clients pivoting from US to UK
Citi's Sieg sees rich clients pivoting from US to UK

The Wall Street giant's global wealth head says affluent clients are shifting away from America amid growing fallout from President Donald Trump's hardline politics.

US employment report reactions: Overall better than expected, but concerns with underlying data
US employment report reactions: Overall better than expected, but concerns with underlying data

Chief economists, advisors, and chief investment officers share their reactions to the June US employment report.

Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading
Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading

"This shouldn’t be hard to ban, but neither party will do it. So offensive to the people they serve," RIA titan Peter Mallouk said in a post that referenced Nancy Pelosi's reported stock gains.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.