Affluent investors are looking for “financial peace of mind,” but that, said Sallie Krawcheck, “is missing,” for many investors. On a conference call on Wednesday, July 28, Krawcheck, president of Bank of America Global Wealth & Investment Management (GWIM), revealed the results of the Merrill Lynch Wealth Management Affluent Insights Quarterly survey of 1,000 affluent investors–which Merrill Lynch defines as those with $250,000 or more in investable assets. Some investors are worried about a double-dip recession, “or Japan type of scenario,” Krawcheck added.
The concerns these investors have appear to be growing broader and stronger. What do they worry about most? Many, 42%, are concerned about “maintaining their family’s standard of living,” and 40% worry about “health care costs,” according to the survey. It is the basic things, such as “saving/investing for retirement,” that concern 37%; “replenishing savings to pre-recession levels” (35%); “daily/monthly expenses” (33%); “college education costs/savings” (31%); and “mortgage payments,” (25%).
Many affluent investors cited family obligations: they had “added financial responsibilities,” such as “caring for an elderly parent or relative,” (45%), or an “adult child,” (36%), said Dean Athanasia, head of GWIM Banking and Merrill Edge, also on the call.
Krawcheck added that now, more affluent investors, 45%, “expect to retire later” than they had anticipated. That’s way up from last quarter, when 31% said that, and 29% who indicated that in January, she explained.