Thursday, 17 October 2013
Survey Shows Quarter of Investors Do Not Have Financial Plan
Among other things, it would seem that a genuine lack of interest is one of the biggest reasons why this portion of investors have done little to no financial planning. For the most part, Americans (for example) are primarily concerned with paying for health care costs, retirement readiness and saving for their children's education. Moreover, when shocks in the stock market and events such as the American government shutdown and the threat of a U.S. government debt default make investors apprehensive, they second-guess traditional investment offerings.
Whether it can be attributed to political uncertainty, disruptions in the financial markets and/or having no desire to pay fees, many investors have failed to establish a financial plan for the future. The survey by Nationwide funds shows us that astonishingly one-in-four investors do not have a financial plan, and are not likely to develop one soon. Luckily for them, the emergence of alternative investments has introduced opportunities that are much easier to understand, than stock and bond markets, interest rates and international politics. Although these options are no substitute for sound financial planning and a well-diversified portfolio, they do offer steady investment returns with much less associated risk, for investors who feel confident to make investing decisions on their own.