American investors remain risk averse overall, but there are signs that tolerance is rising, albeit slowly due to multiple concerns.
A new report published today (October 16) by F&G Annuities & Life shows that 73% of investors polled for its Risk Tolerance Tracker said the events of the last 12 months have made them less likely to take financial risks.
However, this is down from the 78% of respondents who expressed increased risk aversity in 2023 and 2022.
But inflation, recession, and the presidential election are all key concerns (80%, 72%, and 72% respectively) among investors particularly in how these factors impact their financial future, especially retirement plans.
Cybercrime/fraud (63%), geopolitical risks/tensions (61%), historically high debt (59%), stock market volatility (59%) and the impact of Generative AI on finances (50%) are other leading concerns.
Baby Boomers are most likely to feel concern about the election impacting their financial future, with 80% of respondents of this generation saying so compared to 72% of Gen Xers, and 64% of Millennials.
Worries about the impact of recession are more widespread but the two older generations revealed a worrying lack of professional advice, given their close proximity to retirement. More than half of Baby Boomers and almost two thirds of Gen Xers do not have a professional financial advisor.
Despite retirement income – and factors that may reduce it – being a key focus for respondents with 88% citing guaranteed income as important, just 14% said they own an annuity.
“Our fifth annual survey shows that while risk tolerance is modestly increasing, uncertain economic factors continue to weigh on the minds of American investors,” said Chris Blunt, CEO of F&G. “Yet at the same time, many investors are not taking advantage of the tools they need to plan for the long term, such as leveraging an advisor and building a balanced portfolio that includes guaranteed income products. Being proactive now can give investors more peace of mind in the months and years to come.”
A recent survey from Nationwide also highlights concerns about the risk of current factors impacting retirement income with advisors stepping-up portfolio protection strategies amid client election jitters.
The latest father-son additions at Merill include a tandem originally with Wells Fargo and an Iowa-based trio that crossed over from Baird.
Investors say the advisor graded its own assets - then cashed in
Oregon investors allege Norada sold high-yield notes through a Ponzi scheme
Schwab founder Charles Schwab invested in Kalshi in 2021. Now the brokerage is launching binary options on predicting the S&P 500 through Cboe.
With more HNW clients coming to meetings armed with AI research, BNY Wealth report finds advisor expertise is more critical than ever as the final human check.
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.
