Wealthy investors confident about finances

Affluent investors are optimistic about their personal finances, with 70% in both Canada and the U.S. agreeing they’re well on their way towards achieving their goals, says a Manulife investor sentiment survey.

Approximately half anticipate their financial position will improve over the next two years. Also, only one-in-five investors conceded they’re behind on their financial goals, though they’re confident they’ll soon catch up.

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The findings are based on a comparison of the results of the latest Manulife Financial and John Hancock Investor Sentiment Index surveys. These surveys measure whether people consider this a good time to invest in a variety of savings and investment vehicles.

Overall, Canadians’ sentiment strengthened in the second half of the year, rising to +31, from +26 in January 2012.

Meanwhile, U.S. investors’ confidence held steady in the fourth quarter of 2012. It ticked upward slightly to +18 from a score of +17 in the third quarter of last year.

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The survey also finds:

• In Canada (31%) and the United States (29%), the top financial-planning related resolution is to trim household budgets.
• Rebalancing portfolios took second place for 19% of Canadians and Americans alike.
• Canadians’ top three priorities are to manage/maintain current lifestyle (32%), pay down debt (18%) and save for retirement (15%).
• Americans say their top priorities are the same, but they differ in order, with maintaining their current lifestyle (35%) topping the list, followed by saving for retirement (29%) and paying down debt (11%).

However, both use the basic steps to ensure their wealth is preserved. They first work with financial professionals, and also save on a regular basis and reduce spending.

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Seven-in-ten works with a financial advisor to achieve their financial goals, while five-in-ten choose to seek advice in the U.S. Both groups mainly use advisors to get better returns.

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