Bruised investors seek guarantees, survey shows

After watching their portfolios get battered, investors are looking for investments that promise guaranteed returns for retirement, a survey found.
Fully 74% of respondents said a guarantee was “very” or “extremely” important in choosing an investment, according to the online survey conducted in May by Financial Research Corp. of Boston.
The strategy is perhaps a natural response to the 25% drop in asset values that survey participants reported experiencing in the last year.
The survey reflected the views of 1,500 consumers and is scheduled for release in July.
A concurrent study of 1,200 advisers, which was also conducted in May, showed that 94% of respondents reported that clients were asking about guarantees, said Margaret Rorick, senior vice president and market research director at FRC in Boston.
The results of both studies were shared yesterday at FRC’s annual conference.

Related Topics: IN Research