The number of advisors discussing alternative investments with their clients has more than doubled in the last year, according to the Natixis Global Asset Management’s Global Investor Insights Survey.
Seventy-four percent of those surveyed say their advisors are talking to them about alternative investments, compared with 35 percent last year and 19 percent in 2011. At the same time, 72 percent say they would consider alternative investments if their advisors recommended them.
Most investors (61 percent) surveyed say they do not believe the traditional mix of equities and bonds for portfolio allocation is the best way to pursue returns and manage investments.
Natixis, an asset manager based in Boston and Paris with $783.3 billion in assets under management, questioned 750 U.S. investors with at least $200,000 in assets.
The survey also asked respondents for their feelings about their finances and found that 53 percent are expecting their financial situations to improve over the next 12 months. Even more (89 percent) are confident that their current investment strategy has them on pace to meet their retirement savings goals.
That confidence came in spite of the fact that 54 percent say they do not have a financial plan and 45 percent say they do not even have clear financial goals.
Those who do have a financial plan estimate on average that they will need 62 percent of their pre-retirement income to live on in retirement—significantly less than the 70 percent to 80 percent commonly used for planning purposes, Natixis says.
Several things worry those who are looking ahead to retirement, and top among the worries, according to the survey, are long-term care costs that are not covered by insurance, with 40 percent listing it as their top concern. Market volatility that could cause a significant reduction in retirement savings or investments is second.
Other issues that worry investors include not having enough money from a defined contribution plan, being physically unable to work, the cost of caring for or educating children and grandchildren and the cost of caring for elderly family members.
If their retirement funds fall short and they are incapable of supporting themselves, 40 percent of investors say they will rely on family members to fill the gap, and 38 percent will look to government programs. Nineteen percent say they will go back to work.