Investors like you are now more concerned about affording long-term care than being able to retire securely

ubsDustin A. Smith
Senior Vice President-Investments
Corporate Stock Benefit Consultant
Smith Wealth Management Group
UBS Financial Services |
Toll Free: (800)237-8682 | Direct: (239)254-7122 |
Investor concerns always evolve with the changing economic landscape. But recently, the converging factors of rising healthcare costs and increased life expectancy have resulted in the primary worry being the financial consequences of supporting themselves in old age. And, for the first time ever, long-term care issues are more pressing than retirement.
In a recent survey of over 2,000 affluent investors reported in UBS Investor Watch—a quarterly research publication that tracks the trends of current investor sentiment—26% of investors indicated their largest personal concern was affording long-term care. That was more than those who indicated their biggest worry was retirement (14%). And in a sweeping nod to the growing importance of this issue, younger investors, ages 25-49, reported seeing long-term care as more important than their older counterparts, ages 60 and older (33% vs. 18%).
“We’re beginning to see a major shift in what investors see as their most important personal issues,” Mike RyaChief Investment Strategist for Wealth Management Americas and Regional CIO for the U.S., said as he unveiled the new report. “The impact of growing long-term and healthcare costs cannot be disputed,” he concluded.
Other anxieties about the macro environment persisted, including concerns about an increasingly intractable political situation in Washington. Seventysix percent of investors are highly concerned about the political climate in Washington, surpassing concerns about rising healthcare costs (67% were “extremely / very worried”) and the size of U.S. national debt (66% were “extremely / very worried”).
Mike Ryan commented, “We see today’s investors as adaptive creatures. In this environment, neither euphoric nor despondent, they are more pragmatic and practical. They’ve tempered return expectations, but acknowledge participating in the markets is necessary to grow wealth.”
While there’s no shortage of issues to be concerned about, the report found that overall confidence is higher among investors and significantly higher among those who create and follow a financial plan. Seventy-three percent of investors who consistently follow a financial plan feel “excellent / very good” about their financial situation and the ability to reach their goals, as opposed to 31% who feel “excellent / very good” and don’t have a plan. Furthermore, advice was shown as central to helping investors feel more confident, with 68% saying “receiving good advice to make smart financial decisions” is “very / extremely important.” If the trend toward higher healthcare costs and longterm care costs continues, as most would expect, the need for planning for the future will become more important than ever. If you’re an investor who shares these concerns and has the desire to create a plan to move forward with more confidence, connect with The Smith Wealth Management Group today.
Provided by
Dustin A. Smith
Senior Vice President-Investments
Corporate Stock Benefit Consultant
Smith Wealth Management Group
UBS Financial Services
Toll Free: (800)237-8682
Direct: (239)254-7122
“Insurance products are issued by unaffiliated third-party insurance companies and made available through insurance agency subsidiaries of UBS Financial Services Inc. As a firm providing wealth management services to clients, we offer both investment advisory and brokerage services. These services are separate and distinct, differ in material ways and are governed by different laws and separate contracts. For more information on the distinctions between our brokerage and investment advisory services, please speak with your Financial Advisor or visit our website at ©UBS 2013. The key symbol and UBS are among the registered and unregistered trademarks of UBS. All rights reserved. UBS Financial Services Inc. is a subsidiary of UBS AG. Member SIPC

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