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February 20, 2013 at 06:23 AM
Affluent investors’ understanding of tax-advantaged investments, like annuities, life insurance and 401(k)’s, varies among demographic groups, according to a new poll.
Nationwide Financial reported Tuesday that the results of its recent online survey of 751 mass affluent investors, conducted by Harris Interactive, pointed to an opportunity for advisors to educate clients on the implications of new taxes.
“Our survey suggests that, while some may be very receptive to considering portfolio adjustments, others may need a little more proactive education from their advisor,” Eric Henderson, senior vice president of life insurance and annuities for Nationwide Financial, said in a statement.
The survey showed that women were less likely than men to expect a significant decrease in household income or asset value as a result of tax code changes. Only one in 20 women had met with a financial advisor to talk about how new taxes could affect their portfolio.
Fifty-two percent of female survey respondents said they were somewhat or very concerned that changes to the tax code would negatively affect their portfolio compared with 69% of male respondents who felt that way.
Women expressed less confidence than men that they completely understood the tax advantages of annuities, life insurance or 401(k) plans.
“Time will tell if the comparative optimism of female survey respondents is warranted,” Henderson said. “In the meantime, it’s critical for female investors and their advisors to discuss new taxes.”
He noted that for most married couples, the wife was likelier to outlive her income, making it is important for both spouses to be active in managing their portfolio.
