NEW YORK--(BUSINESS WIRE)--Nearly three-quarters of U.S. investors are concerned about a market correction, yet more than a third said they were unsure what they would do with their savings if they pulled it from the stock market. When asked what they would do if they were to take all their money out of the stock market, 44% of investors said they would go more conservative and purchase interest bearing investments, 35% were unsure what to do, 19% said they would purchase an annuity, 13% would cash out funds and 9% would buy gold (Note: respondents could choose multiple options).
These are some of the major findings of a Global Atlantic Financial Group national study of U.S. investors 40 years of age and older regarding stock market risk and investments. The study was conducted in 4th quarter 2017 by Ebiquity, a global market analytics firm, among 1,005 U.S. investors with investments in the stock market through stocks, ETFs, mutual funds, 401Ks or IRAs.
According to the Global Atlantic study, as they get closer to retirement investors value creating a steady stream of income most (39%), followed by protecting the money they have (27%), monetary growth (18%), and having a diversified portfolio (16%). While both men and women valued income and capital protection most, women placed a higher value on both income (43% vs. 34%) and capital protection (30% vs. 23%), compared to men.
“These survey results reinforced our views that investors become more conservative as they approach and enter their retirement years. People closer to retirement tend to place greater value on guaranteed income and allocation strategies that help them lower their exposure to market risk,” said Paula Nelson, President, Retirement at Global Atlantic Financial Group. “Adding annuities to the mix is often an effective way to help achieve these objectives, but not everyone understands the role an annuity can play in their portfolio. With the help of a financial advisor, investors can learn about their options and find a mix of investments to meet their retirement income needs.”
Seventy-four percent (74%) of respondents are concerned about a stock market correction. In fact, fifty-nine percent (59%) of employed investors said that a significant stock market drop would inhibit their ability to retire when they want, while twenty- five (25%) percent of those already in retirement said it would disrupt their retirement.
About Global Atlantic
Global Atlantic Financial Group, through its subsidiaries, offers a broad range of retirement, life and reinsurance products designed to help our customers address financial challenges with confidence. A variety of options help Americans customize a strategy to fulfill their protection, accumulation, income, wealth transfer and end-of-life needs. In addition, Global Atlantic offers custom solutions and responsive service for the capital, risk and legacy-business management of life and annuity insurance companies around the world.
Global Atlantic was founded at Goldman Sachs in 2004 and separated as an independent company in 2013. Its success is driven by a unique heritage that combines deep product and distribution knowledge with insightful investment and risk management capabilities, alongside a strong financial foundation of over $50 billion in assets.
There are a multitude of different products that may be accessed for retirement income needs. For example, stocks, bonds, ETFs, mutual funds, and variable annuities are securities and have different risk/reward characteristics, liquidity properties and tax consequences, particularly when compared to interest bearing products such as CDs, savings accounts, money market accounts, fixed annuities and fixed index annuities. Certificate of Deposits (CDs) are bank products that are FDIC insured. Money Market funds are securities and are not FDIC insured and although these funds seek to preserve the value of an investment at $1.00 per share, there is no guarantee they will maintain this value.
Variable annuities are sold by prospectus. The prospectus contains investment objectives, risks, fees, charges, expenses, and other information regarding the variable annuity contract and the underlying investments, which should be considered carefully before investing money. You can obtain a prospectus from your financial advisor or by visiting globalatlantic.com. Please read the prospectus carefully before you invest or send money.
Annuities are issued by Forethought Life Insurance Company, 10 West Market Street, Suite 2300, Indianapolis, Indiana. Variable annuities are underwritten and distributed by Global Atlantic Distributors, LLC. Products and optional features are subject to state and firm availability.
Global Atlantic Financial Group (Global Atlantic) is the marketing name for Global Atlantic Financial Group Limited and its subsidiaries, including Accordia Life and Annuity Company, Commonwealth Annuity and Life Insurance Company, Forethought Life Insurance Company and Global Atlantic Re Limited. Each subsidiary is responsible for its own financial and contractual obligations.