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New Research: Investors Anxious About Market Volatility But Taking Wrong Steps to Alleviate Concerns

January 9, 2020 GMT
Kiplinger-Personal Capital survey shows investors are anxious about market volatility as they stockpile cash and consider delaying retirement.
Kiplinger-Personal Capital survey shows investors are anxious about market volatility as they stockpile cash and consider delaying retirement.

WASHINGTON, Jan. 9, 2020 /PRNewswire/ -- Even on the heels of a largely successful stock year, investors fear market volatility and have reported stockpiling cash, considering reducing investments in stocks and even delaying retirement, according to new research from Kiplinger’s Personal Finance magazine and digital wealth management company Personal Capital.

At the same time, most investors say they know the value of having a long-term financial plan to get them through the ups and downs of the stock market, which is nearing its eleventh anniversary as a bull market.

“While most people saving for retirement need to increase their stock holdings to reach their savings goals, many who were scarred by the Great Recession are now nervous about the economy and the bull market’s longevity. They want to reduce their risk as much as possible,” said Mark Solheim, editor of Kiplinger’s Personal Finance. “This survey shows that market volatility is a genuine concern for investors, especially those who are nearing retirement age.”

An overview of survey results featuring graphics can be found here. A copy of the feature story in Kiplinger’s Personal Finance February 2020 edition can be found here.

Kiplinger and Personal Capital found that in response to anxiety about a bear market, investors are considering:

The survey also shows that there are opportunities for many Americans to consider the kind of personal financial advice that would help them through any turbulent times. For instance, the study found only two out of ten investors (18.6%) say they are currently seeking the advice of a professional advisor to address market volatility.

“It’s encouraging to see so many Americans prioritizing retirement savings and working with a professional to build long-term financial plans,” said Kyle Ryan, Executive Vice President of Advisory Services at Personal Capital. “Your trusted advisor should work with you to create a holistic, long-term financial plan that is built to weather market cycles over time, including volatile ones. When volatility inevitably hits, or even if you’re just feeling anxious enough about volatility to consider knee-jerk changes that could impact your long-term goals, your first call should be to your advisor. A trusted advisor will help keep you from making emotional decisions and make sure you stay on track toward growing your net worth.”

Methodology

The Kiplinger-Personal Capital national poll about The Impact of Market Volatility on Retirement Planning was conducted on October 17-21, 2019, with 850 respondents. The online survey has a +/- 3% margin of error and a 95% confidence level.

Respondents were screened for age, household income, and investible household assets with an equal male/female split. Those participating had a minimum age of 40, a minimum $50,000 annual household income before taxes, and a minimum $100,000 combined household net worth, excluding primary residence.

About Kiplinger’s Personal Finance

For a century, the Kiplinger organization has led the way in personal finance and business forecasting. Founded in 1920 by W.M. Kiplinger, the company developed one of the nation’s first successful newsletters in modern times. The Kiplinger Letter, launched in 1923, remains the longest continuously published newsletter in the United States. In 1947, Kiplinger created the nation’s first personal finance magazine. Today, The Kiplinger Washington Editors, Inc., is a wholly-owned subsidiary of Dennis Publishing, Ltd.

Located in the heart of our nation’s capital, the Kiplinger editors remain dedicated to delivering sound, unbiased advice for your family and your business in clear, concise language. Become a fan of Kiplinger on Facebook or Kiplinger.com and follow Kiplinger on Twitter, LinkedIn, and Tumblr.

About Personal Capital

Personal Capital is an industry-leading digital wealth management company. We do the right thing by the everyday investor by taking a holistic, 360-degree approach to money management. Our award-winning tools and technology provide investors with a complete financial picture and our registered investment advisors provide guidance and logical strategies, based on a personal understanding of an investor’s financial picture and goals. We currently manage more than $11 billion in assets and have offices across the United States. For more information, please visit http://www.personalcapital.com or connect with us on Facebook,Twitter,Instagram or Linkedin.

Advisory services are offered for a fee by Personal Capital Advisors Corporation, a wholly owned subsidiary of Personal Capital Corporation. Personal Capital Advisors Corporation is a registered investment advisor with the Securities and Exchange Commission (“SEC”). SEC registration does not imply a certain level of skill or training. Investing involves risk. Past performance is not a guarantee or indicative of future returns. The value of your investment will fluctuate, and you may gain or lose money.

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SOURCE The Kiplinger Washington Editors Inc.