Affluent Americans are worried about the future of their finances and many are turning to financial advisors for help, according to a new survey.
Investors are most worried about factors outside of their control: 62% cite economic recession among their top threats, while 55% cite market volatility, 50% cite rising healthcare costs and 44% cite the continuation of the coronavirus pandemic, Bank of America found in a survey of 2,000 U.S. respondents, in which those aged 18 to 24 had investable assets between $50,000 and $1 million and those 25 and over had between $100,000 and $1 million in assets. The survey was fielded from October 28 to November 5.
Overall, meanwhile, 50% of affluent Americans are more pessimistic about the economy than they were at the start of the year, with the figure rising to 64% among baby boomers and 66% among seniors, Bank of America says.
Nonetheless, many affluent Americans are trying to prepare themselves: 81% say they’ve taken the money they would typically spend on entertainment, dining and travel and put it toward savings accounts, emergency funds or other savings vehicles, the survey found. And 46% of respondents say they’re using this time to organize their finances, with 37% saying they’re now actively managing or optimizing their finances more frequently than before, Bank of America says.
Financial advisors remain the primary source of information about the market and investment management for affluent Americans, cited by 45% of the survey’s respondents, followed by online investment management platforms, which were cited by 37%, the survey found. In addition, 32% of respondents say they turn to websites or blogs when looking for financial information and 30% cite their family and friends, Bank of America says.
However, older generations are more likely to tap a human advisor for market insights: 59% of baby boomers and 65% of seniors say they prefer human advisors over online investment platforms, but only 51% of Gen Z and millennial investors do, the survey found.
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