A recent poll commissioned by Nuveen, TIAA’s investment manager, found high-net-worth investors well aware that inflation and interest rate risks could affect their investment income.
At the same time, many investors had a different understanding of how those factors might influence their investment portfolio and what they could do in a rising-rate, high-inflation environment.
The Harris Poll conducted an online survey in the late winter among 1,010 U.S. adults 21 and older with at least $100,000 in investable assets who were primary or shared decision makers on finances for themselves or their family, and were currently working with a financial advisor.
In a statement, Nuveen noted that the survey findings, released Tuesday, were the latest extract from the study, and followed the release in July of findings that focused on avoiding loss and guarding gains.
The new survey results showed that three-quarters of investors trusted their personal experience of inflation more than statistics calculated by the Labor Department.
How reliable is this gut feeling?
Most respondents said they carefully monitored inflation as they planned for retirement, invested or spent money.
Some seven in 10 investors correctly recognized that inflation was low at present, and they largely understood that retirees experienced higher inflation rates than the norm.
Yet, 60% incorrectly said the U.S. inflation rate was 5% or higher or admitted that they were not sure. Only 32% came near the real number of 2% to 3%.