Individuals who have more of their investments in employer-sponsored retirement plans are more interested in solution-oriented products, such as lifecycle funds, according to a study from Financial Research Corp. The study is based on a survey of 669 investors over the age of 30 with varying levels of invested wealth.
Individuals with more of their investments in personal accounts such as IRAs are more likely to use adviser services, including IRAs and taxable investment accounts. “Solution-oriented products and services are beginning to influence the way investors think about investing. Gone are the days when broad-based products and services and vague marketing messages will win assets,” FRC President Michael Evans said in a news release.
The study also found that more investors thought model portfolios created by manager research teams would result in the optimal portfolio, instead of financial advisers choosing from all available options.
Separately, investors are most likely to be motivated to find information about investment products because of their desire to be knowledgeable about their finances, according to the study. But age did play a factor. Investors age 30 to 40 were more motivated to seek out information about investment products because of fear or anxiety about their financial futures, while investors 70 and older were motivated more by a sense of opportunity, the study found.
