Investing still scares many

With the Great Recession just a few years behind us, Americans are still spooked by investing, despite the continuing stock market rally.

According to a new Nationwide Financial survey of potential investors with at least $100,000 in investible assets, 83% fear another financial crisis and 62% are scared of investing in the stock market. That is more than the 58% who fear death and the 57% who fear public speaking.

The only fear that evokes similar distress is skydiving (81%).

“There doesn't seem to be much understanding of the recovery. There was a double-digit return on the equity markets in 2012,” said Michael Spangler, president of Nationwide Funds, Nationwide Financial's fund business.

Meanwhile, younger investors, in particular, also shun turning to advisers for help.

GENERATION GAP

Millennials and Generation Xers are more likely to use websites as their primary financial planning resources (58% and 48%, respectively) as opposed to using an adviser (51% and 43%). Retirees and high-net-worth investors, by contrast, are most likely to use a financial adviser as their primary financial planning resource (78% and 61%, respectively).

Millennials and Gen Xers are also more afraid than others that they won't be able to retire (66% and 65%, respectively), compared with 57% of pre-retirees.

Other financial-related fears for respondents are the prospects of unmanageable health care costs (72%) and the inability to pay for their children's education (71%).

“While it's important that Americans take an active role in planning, it's critical they are looking not only at retirement but their entire financial picture,” Mr. Spangler said.

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