"Millennials, even with time on their side, would rather preserve what they have and avoid the market. We are concerned that investors, boomers and millennials alike, are maintaining asset allocations inconsistent with their true risk tolerances and investment time horizons," said Orton.
"The U.S. stock market has nearly tripled in value since the market bottom of March 2009, while interest rates have remained historically low," he said. "We need to start preparing investors for the expected -- interest rates rise and recessions occur -- not the unexpected.
"To be prepared, investors must discuss their mind set and current allocations with their financial advisors. Regardless of age, investors, along with their advisors, need to understand the risks that come with asset allocations that do not match investment time horizons."
MFS, through Research Collaborative, sponsored the online survey of 623 licensed financial advisors and 951 investors with $100,000 or more in household investable (nonretirement) assets.