Investors With Formal Plan Have More Peace Of Mind, Says Survey

By

Many individuals who obtained significant wealth in the boom of the 1990s are suffering from inertia in todays bear market. What once seemed so easy about achieving their long-term financial goals is no longer as simple as collecting returns on investments.

But, according to a survey commissioned by The Phoenix Companies Inc., Hartford, having a formal, written financial plan in place can help wealthy investors move forward with confidence in an unpredictable market. The survey was conducted by Harris Interactive Inc., Rochester, N.Y.

And advisors who seek out investors who are unsure what to do next can “provide themselves some job security,” says Stephen Gresham, executive vice president and chief sales and marketing officer, Phoenix Investment Partners.

“Our survey shows us that in the overall group, a full 77% reported making no allocations to their portfolio, whether to increase or decrease risk as a result of economic impact of 9/11.

“Advisors who seek out the fiscally frozen can offer a recovery plan to get them moving and may even provide themselves with some financial security,” Gresham explains.

The annual Phoenix Wealth Management Survey says that 36% of wealthy investors have a formal plan and have fared better than investors who dont.

“Faring better” does not mean those investors have earned more money, says Walt Zultowski, Phoenix senior vice president, marketing and market research. It means that they experienced more peace of mind than investors who lack a plan, he says.

Phoenix refers to these two groups as the “planners” and the “fiscally frozen.”

“When we asked how are you doing on achieving a range of goals, the planners were already near achieving many of them, and have an especially comfortable standard of living during retirement,” Zultowski says.