What Investors Are Thinking
Our Investor Pulse survey sheds new light on what investors are thinking and doing in the current investment environment.
In the face of challenging global economic conditions and a new world of investing, BlackRock wanted to know what was on the minds of investors. How are investors feeling about meeting long-term financial goals, especially retirement? What are key concerns about the current investment environment? How willing are investors to make portfolio adjustments to capture opportunity?
Our annual Investor Pulse survey provides answers to these questions that are on the minds of investors today. We conducted this research in summer and fall of 2013 with 4,000 U.S.-based investors and 500 financial advisors. What we learned might provide some helpful insight as you think about what to do with your clients’ money. Our five findings are presented here.
Squeeze on Household Incomes
After decades of continuous progress, the financial crisis has knocked household finances sideways. U.S. investors surveyed find themselves having to juggle a number of competing financial goals as incomes feel the squeeze. The aspiration to manage long-term finances and prepare for retirement remains strong, however, this aspiration is being dealt a blow as the need to pay off debts takes priority in the short and medium term. The percentage of take-home pay devoted to living costs, bills and debt is particularly high in the U.S. (49%) compared to the global average (40%).
These costs translate into widespread personal savings deficits in the U.S. Americans reported saving, on average, just 16% of their take-home pay each month—compared with the global average of 18%. And when asked what would encourage them to invest more of their cash savings, nearly one in three (32%) respondents indicated "less personal debt."
Strengthen Your Core with iShares ETFs:
In volatile times like these, many investors are looking to the core of their portfolios to do more. How do you help your clients keep more of what they earn?
Apply the Research to Your Practice
Watch BlackRock's Investment and Retirement Education expert discuss the findings from the most recent survey.
Learn More About the Survey
This is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Any opinions expressed are as of October 2013 and may change as subsequent conditions vary. The information and opinions contained in this paper are derived from proprietary and nonproprietary sources deemed by BlackRock to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. This content may contain "forward-looking" information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this paper is at the sole discretion of the reader. The information provided here is neither tax nor legal advice. Investors should speak to their tax professional for specific information regarding their tax situation.
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