The remarkably strong stock market rebound may have caused some improvement in those numbers, but it hasn't been accompanied by a similar change in attitude. When the mass affluent are asked when they will decide the recession is over, 70% say the signal will be a drop in unemployment rates. Only 30% think it will be a rise in stock market averages.
A prolonged economic downturn remains the mass affluent's top fear, with 82% citing it as a financial concern. Next on the list is maintaining their current financial position and having enough money set aside for retirement, mentioned by 74% and 71% of those surveyed, respectively. Fully 49% fear that they or their spouse could lose their job.
Baby boomers are the most challenged investor segment, and 42% of mass affluent individuals aged 51 to 64 years old say they are delaying their retirements. But almost half of all mass affluent investors say they are saving more, a trend that is particularly pronounced among younger investors under 50 years old, of whom 59% say they are saving more.
Protection of principal is a goal that now encompasses almost two-thirds of all the mass affluent people surveyed, or 64%. Remarkably, as many as 54% of the under-50 age group now feel it is important, while 58% of over-50 investors want guaranteed returns on their retirement investments.
What about advisors? Of the 69% of investors in the Spectrem survey who use advisors, only 61% currently are satisfied with who they use. Responsiveness, or the lack of it, tops the list of complaints about advisors.
Clients who are professionals can be particularly demanding. "Doctors and lawyers expect a response within three hours, even on Sunday-or especially on Sunday, and they'll use e-mail," Walper observed.
There was one notable bright spot of sorts for advisors. Fewer than 30% of all investors surveyed by Spectrem think their fees are too high. In fact, the average amount that respondents thought they were paying in fees was 3.1%, and investors under 50 thought they were paying 3.7%.
When asked what fee structure their advisor should use, 50% said their current arrangement was fair, while 23% wanted performance-based fees. And 28% said their advisor should not charge any fee unless the account was growing.
Investors' attitude toward new financial products was mixed. About 56% of respondents saw a need for new products, while 44% did not. Asked to rate what attributes they considered important in new product development, more than 90% cited performance, security, safety and ease of understanding as features they'd like to see.
