That was one of the conclusions of a study released by New York Life Investment Management (NYLIM) LLC, which found that a third of investors born between 1967 and 1981 say they expect college costs to be out of reach by the time their children graduate high school. That‚s up from 26% last year.
Based on the way college costs have risen over the past decade, investors have reason to worry, say those involved in the study.
"Tuition and fee costs have nearly doubled over the past ten years and, at the current rate of increase, will likely double again in the next ten years," says Beverly J. Moore, managing director of NYLIM Retail Markets.
The study found that all investors of all age groups are startled by the increased costs of higher education. In addition to the "Generation X" respondents, the study found that a third of Baby Boomers and 25% of those aged between 55 and 70 felt college costs were getting out of hand.
Not surprisingly, 63% of Generation Xers say they are saving for their children‚s education, compared to 52% of Baby Boomers. Yet only about 33% of Generation Xers have a comprehensive financial plan, compared to 38% of Baby Boomers and 47% of older investors. GenXers also were the least likely to be working with a financial advisor. About a third had comprehensive financial plans, compared o 38% of Baby Boomers and 47% of those aged 55 to 70.
Clarification
An article in the July issue regarding disability benefits stated that only 3% of UNUM claimants who were denied benefits in 2002 chose to appeal. The article should have said that of all UNUM disability claims closed in 2002, approximately 3% chose to appeal.
Performance Perception Gap Between Advisors And Clients
Having an advisor you trust and get along with may be important, but for many affluent clients the most important thing they want from their advisor is good performance.
That was one conclusion of a recent survey by Fidelity Investments that throws a bit of cold water on the "relationship-is-key" thinking that seems to predominate in the advisory profession nowadays.
The survey, in fact, indicates that there may be a significant gap in how affluent clients and their advisors view the priorities in their relationship.