Thrill of investing replaced by fear, trepidation, survey finds; 'constant worry'
Investing just isn't as much fun as it used to be for baby boomers, even for those who have plenty of money stashed away.
For those with $5 million to $25 million in net worth, excluding their home, a bare majority at 52% said they enjoy investing and would not want to give it up. Those with less money are even less likely to enjoy playing the market, with only 43% of those with $1 million to $5 million calling it enjoyable and only a third of those with $1 million or less enjoying investing.
That might have something to do with nagging concerns about personal finances as well as “investor fatigue” from the last several years of volatile markets, said Randy Wostratzky, director of the researcher Spectrem Group.
“Investors have almost become tired of the constant worry that comes from being so involved, and many just can't seem to find strategies that they're happy with,” Mr. Wostratzky said.
Spectrem Group, which frequently surveys affluent investors, noted a marked decrease in enthusiasm about investing from a few years ago, when two-thirds of the wealthier investors said they enjoyed investing. Spectrum's most recent online survey of around 1,900 affluent and wealthy investors was conducted between October 2011 and March 2012.
The volatility of the last few years has left even affluent investors worried about whether they have enough. About three-fourths of those with $1 million or less said they worry about maintaining their current financial position. About 60% of ultrahigh-net-worth investors — those with $25 million or more — share that concern.
More than half of those with less than $5 million worry whether they will have enough money for retirement and whether they will be able to retire on schedule. Spectrum also expects baby boomers to become increasingly concerned about taxes in coming years.