'Transformative events' shape client's financial thinking, survey finds

Even a solid income and respectable household net worth aren't always enough to keep investors from worrying about the future, according to the results of a new survey. A Citibank study of more than 600 U.S. adults with household incomes of at least $150,000 and liquid net worth of at least $250,000 found that the stress increases the further out investors look. While three-quarters of the respondents considered themselves optimistic about the next 12 months, 40% were concerned about retiring comfortably. A third said they're worried about maintaining their current lifestyle, 35% are worried about elder care and 23% cited leaving a legacy as a major concern. “Our clients tell us that what matters most to them are the transformative moments in life; these life events impact wealth planning and financial goals,” said Venu Krishnamurthy, president of Citigold, a provider of Citibank services. He added that when a longer-term approach to investing is considered, it is often very conservative. The lingering effects of the financial crisis have 42% of respondents identifying themselves as somewhat or extremely conservative in their financial planning. A full 95% of respondents said they are “financially conservative today to ensure security in the future.” In taking steps to meet their financial goals, the survey respondents said market volatility (73%), low saving rates (72%), and problems relying on a financial adviser or broker (29%) are their greatest challenges. “The poll mirrors what we hear from our clients — that they are less concerned about acquiring material things, but would rather have a future grounded in long-term security and a legacy for their children,” Mr. Krishnamurthy said.