Investors anxious about market volatility are taking all the wrong steps to alleviate their concerns.
Or at least so says a recent survey conducted by Personal Capital and Kiplinger’s Personal Finance Magazine.
According to the survey, investors—and especially those nearing retirement—are increasing cash holdings; respondents to the survey are holding 18% of their portfolios in cash, which is about six times the average.
What’s more, those surveyed said a downturn in the markets would cause them to consider 1) reducing investments in stocks; 2) claiming Social Security early; and 3) delaying retirement.
The survey also found that only two out of 10 investors say they are currently seeking the advice of a professional adviser to address market volatility—even though it would likely help them avoid making mistakes.
In an interview, Kyle Ryan, executive vice president of advisory services at Personal Capital, said advisers can help prevent investors from making mistakes with their money. And, when searching for and selecting an adviser, he recommends working only with a fiduciary as well as someone who will deal with you “holistically” for all your financial decisions, and someone who has great access to technology.
|Top worries about retirement||%|
High health care bills
Running out of money when I'm older
Not having enough money to live
Not being able to travel
Finding new activities to fill my time
Not getting a regular paycheck
Not being able to retire when I want
Leaving a job I enjoy
Having to rely on my adult children
To find out what Ryan has to say more on this, listen to our podcast.
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