This is the first in a 3-part series on the latest Morgan Stanley Wealth Management Investor Pulse Poll.
Most Americans Say They Are on Track to Realize Their Financial Goals – Are You One of Them?
Americans are confident they are on track to achieve their long-term financial goals, according to the latest Morgan Stanley Wealth Management Investor Pulse Poll. The poll surveyed 1,000 U.S. households of high net worth individuals, a third of which had investible assets of $1 million or more.
Ninety-one percent of those polled believe they are on the right path to achieve their long-term financial goals, the top three being saving for retirement, transitioning wealth to the next generation, and paying off a mortgage.
Among those ages 40+ and more secure vs. 20s
Among those ages 30+
While nearly every high net worth investor is somewhat, if not very, happy with their financial situation today, they, too, have financial concerns like the rest of us. What keeps them up at night? Maintaining wealth throughout their lifetime with the same standard of living, having money for retirement and unexpected medical costs were some of high net worth investors’ top concerns. Nearly 90 percent of middle-aged or older investors wish they would have started saving for their goals sooner— with about half of that pointing to retirement in particular.
The state of the economy and the investment climate
The survey also gauged investors’ sentiment toward the broader economy, especially given we are experiencing fairly strong economic growth in the U.S. and globally. With the market highs and milestones we’ve crossed lately, investors are watching closely to see if the steady growth will change any time soon. Based on Morgan Stanley’s projections, we expect 2018 could be another good year for our economy, though investor sentiment is split.
The Investor Pulse Poll shows investors are almost evenly divided between those believing it will be a good time to invest and those who are neutral, with only a minority predicting this year will be bad for investments.
Erring on the side of caution, Morgan Stanley is advising investors to consider classic performers such as energy, industrials and tech. These sectors have been working well lately thanks, in part, to the return of capital spending and higher oil prices.
Stocks or equities are expected to comprise the biggest part of high net worth investors’ portfolios in 2018, especially in the tech industry. Technology is seen as the leading investment sector of 2018, followed by bio-tech and energy.
Investors continue to rely on and leverage these insights from financial professionals to build out their ideal portfolios.
This is the second in a 3-part series on the latest Morgan Stanley Wealth Management Investor Pulse Poll.
The Importance of Financial Planning – Do You Have a Plan?
More than half of high net worth investors in the U.S. currently work with a financial professional. This is according to the latest Morgan Stanley Wealth Management Investor Pulse Poll, which surveyed 1,000 U.S. households of high net worth individuals, a third of which had investible assets of $1 million or more.
Planning is a critical component of reaching your financial goals. To plan for the rest of 2018, start by asking yourself a few questions:
· Did you meet your 2017 financial goals? Were they feasible? Did anything major distract you from sticking to them that could still be at play?
· Have you had any major financial changes recently (like a new job or a new home) that would impact your financial plan for 2018? How might you need to adjust your planning to accommodate those changes?
Answering these types of questions will help you see where you can make improvements this year. After reviewing your 2017 goals and identifying changes you want to make in 2018, meet with a financial advisor to discuss adjusting your financial plan. Be sure to write down your 2018 goals so you can reevaluate your progress at the end of the year.
More than half of investors polled want a comprehensive financial plan to help them achieve their financial goals, and professional help to create that plan. They also want advice that supplements any information they may receive from online financial planning tools.
Guidance on asset allocation and retirement is most sought out by those working with a financial professional. However, unmet needs remain around topics such as developing a comprehensive financial plan and wealth transfer. Though often overlooked when seeking professional guidance, investors should consider discussing these topics with a financial advisor as well. Granted, they may be less complicated, yet they are equally important to overall financial success.
This is the third in a 3-part series on the latest Morgan Stanley Wealth Management Investor Pulse Poll.
High Net Worth Millennials Confident About Reaching Their Short-Term Financial Goals – What Are They Optimistic About?
While most Americans report they are on track to achieving their long-term financial goals according to the latest Morgan Stanley Wealth Management Investor Pulse Poll, one group is particularly focused on their short-term financial success – Millennials.
There are more than 80 million millennials in the U.S., making them a large and significant cohort. As for their financial confidence, to a greater degree than high net worth investors overall, high net worth Millennials between the ages of 25 and 35 strongly agree they are on track to reach their short-term goals. However, they are a bit less confident when it comes to achieving their long-term goals. A majority of millennials who were polled cite a range of concerns—from savings and risk levels, to costs associated with aging parents and education for future generations.
Interestingly, the survey showed roughly two in three Millennials currently leverage the insight of a financial professional—more so than investors overall. These Millennials are most interested in market analysis and asset allocation. While interested in digital planning tools, they are even more likely to enlist the support of a certified financial planner to supplement online tools.
High net worth Millennials have far more optimistic expectations for global, national, state, and local economies—roughly 20 or more percentage points higher than high net worth investors across the board on expecting improvement in the next 12 months.
Indeed, Millennials are influential themselves. More so than other generations, Millennials believe in their ability to change the world and are demonstrating this credence through their commitment to giving back and their strong desire to make an impact. In fact, they are driving the sustainable investing movement.
Important information about your relationship with your Financial Advisor and Morgan Stanley Smith Barney LLC when using a Financial Planning tool. When your Financial Advisor prepares a Financial Plan, they will be acting in an investment advisory capacity with respect to the delivery of your Financial Plan. To understand the differences between brokerage and advisory relationships, you should consult your Financial Advisor, or review our Understanding Your Brokerage and Investment Advisory Relationships brochure available at www.morganstanley.com/ourcommitment/.
You have sole responsibility for making all investment decisions with respect to the implementation of a Financial Plan. You may implement the Financial Plan at Morgan Stanley Smith Barney LLC or at another firm. If you engage or have engaged Morgan Stanley, it will act as your broker, unless you ask it, in writing, to act as your investment adviser on any particular account.
The Investor Pulse Poll was conducted by GfK Public Communications and Social Science using the GfK KnowledgePanel. In order to qualify for this study, respondents were required to have $100,000 or more in household liquid investable assets, be between the ages of 25 and 75 years old, and be one of the primary decision makers in the household for financial matters. The Investor Pulse Poll surveyed 1,001 investors between August 15, 2017 and September 7, 2017. An oversample of 202 Millennial investors between the ages of 25-35 was also conducted during this timeframe using a blend of samples from the GfK KnowledgePanel and other online panels. High net worth investors account for 95 percent of total U.S. household investable assets by value, according to Federal Reserve data.
Todd Hauer is a Financial Advisor with the Global Wealth Management Division of Morgan Stanley in Denver. The information contained in this interview is not a solicitation to purchase or sell investments. Any information presented is general in nature and not intended to provide individually tailored investment advice. The strategies and/or investments referenced may not be suitable for all investors as the appropriateness of a particular investment or strategy will depend on an investor's individual circumstances and objectives. Investing involves risks and there is always the potential of losing money when you invest. The views expressed herein are those of the author and may not necessarily reflect the views of Morgan Stanley Wealth Management, or its affiliates. Morgan Stanley Smith Barney, LLC, member SIPC. CRC 2005043 1/18