'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

Stratos Wealth Holdings closes 11 acquisitions in push for advisory scale
Stratos Wealth Holdings closes 11 acquisitions in push for advisory scale

RIA aggregator adds $4.8 billion in client assets across seven states as demand grows for alternatives to traditional succession models.

Beyond wealth management: Why the future of advice is becoming more human
Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

Shareholder sues FS KKR Capital board, alleges NAV and dividend cover-up
Shareholder sues FS KKR Capital board, alleges NAV and dividend cover-up

Shareholder targets FS KKR Capital's directors over alleged portfolio valuation and dividend missteps.

UBS loses $1.2 million arbitration claim linked to variable annuities and margin
UBS loses $1.2 million arbitration claim linked to variable annuities and margin

UBS has a history of costly litigation stemming from the sale of volatile investment products.

'We are monitoring the situation,' SEC says of private funds
'We are monitoring the situation,' SEC says of private funds

New director David Woodcock puts firms on notice over fees, conflicts, and liquidity risk as private credit shows signs of stress.

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

SPONSORED Durability over scale: What actually defines a great advisory firm

Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline