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Despite Setbacks, American Investors Are Confident

March 16, 2018

The majority of American investors who’ve put away at least $100,000 have had to deal with a major setback such as losing their job — but 95% of such investors are confident about their future nonetheless, according to a recent survey by Ameriprise Financial.

Eight in 10 Americans with $100,000 or more in liquid assets have had to face a major challenge such as a job loss or another type of career issue or, especially among older investors, a market loss, according to the survey of more than 3,000 Americans ages 30 to 79 conducted by Ameriprise.

Sixty-two percent of respondents say they have fully recovered from such adversity, Ameriprise found.

Just 7% of respondents are “stressed” about the future, although most respondents have some concern about potential job loss or a health issue that could jeopardize their finances, according to the survey.

Nonetheless, 78% of people with at least $100,000 in liquid holdings feel like they have enough to cover their essentials, and the same percentage believe they’re doing better than others their own age, Ameriprise found.

Financial advisors have a role to play with investors in this group across the age spectrum, particularly because they see their financial life stage as more relevant to their priorities than their age.

Seventeen percent of respondents overall — and 49% of those in their 30s — say they’re in the asset accumulation stage, according to the survey.

Meanwhile, 48% identify themselves as being in the asset maximization stage, in which they’re focused on boosting their retirement accounts and working toward long-term goals.

Seventy-three percent of respondents in their 40s identify themselves with this stage, as do 51% of those in their 30s, Ameriprise found.

Finally, about 35% of respondents say they’re in the asset sustaining stage, in which they’re figuring out how to ensure their money lasts, according to the survey. Ninety percent of those in their 70s and 17% of people in their 50s identify with this stage, Ameriprise found.

By Alex Padalka