Highly effective investors are twice as likely as other Americans to be confident they are making the right savings and investing decisions. They are also twice as likely to say they enjoy managing their investments. And they have more than 2.5 times the retirement savings of other Americans.
So concludes the investment management firm BlackRock in its 2nd annual "BlackRock Global Investor Pulse Survey" of 27,500 people worldwide. Findings respecting U.S. investors are based on interviews with 4,000 Americans, ages 25 to 74.
The report identifies 7 key habits of highly effective investors. They:
- Regularly review finances
- Spend time to get informed
- Seek financial advice
- Manage debt
- Prioritize saving for retirement
- Diversify their portfolios; and
- Plan for big moments.
The report adds that Americans identify saving for retirement as their number two priority, right behind the more general "saving money." For affluent Americans (those with more than $250,000 in investable assets), saving for retirement is their most important priority.
Despite the U.S. economic recovery in the years following the Great Recession, many Americans haven't experienced an improvement in their own financial well being. Lacking confidence in their ability to fund retirement needs, they are deferring financial decisions and planning.
"When looking at what American pre-retirees have saved for retirement compared to the annual retirement income they say they want, they only have enough to fully fund less than three years of retirement," the report states. "Looking specifically at affluent pre-retirees, they only have enough to last less than seven years for a retirement that could last 20–30 years."
The infographics starting on page 2 recap highlights from the report.
The report indicates that highly effective investors are active learners who invest the time to manage their money and build their financial knowledge. Most use financial professionals to help craft a good financial plan and the right portfolio.
