The Risk Appetite for Destruction

compare annuity ratesIt is no secret that today’s volatile stock market and all-time low interest rate environment make it really tough for both savers and consumers that are trying to get an decent return on their money.  It is probably also no surprise that many consumers, financial advisors, and even pension funds have had to take on much more risk just to achieve any real returns.

 

A recent survey on risk revealed some interesting facts about this predicament that so many people find themselves in today.  Here are some of the results from the Natixis Global Asset Management survey:

 

  • 80 percent of advisors say that they majority of their clients are torn between a desire to increase returns and the need for safety
  • 49 percent of advisors said that a majority of their clients are increasingly willing to take on more risk in search of higher returns
  • 58 percent said that their clients are beginning to place a higher priority on asset growth over protecting principal
  • 33 percent said that a majority of their clients are eager to make up for past losses even if it means taking on more risk

 

These numbers are scary considering another correction like 2008 could potentially be devastating for a baby boomer or retiree that is risk-on vs risk-off.

 

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* nothing is this blog should be construed as investment advice


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