We all make assumptions about investors, but what does the data actually say? Today we take a look at recent studies and publications to get more insight into the mind of investors.

Increase in Social Responsibility

Big investment firms and banks are embracing corporate social responsibility, both in their own organization and in their investing. Since the United Nations supported the Principles for Responsible Investment Initiative, there has been a growing network of international investors fighting to practice responsible investing. This new network represents $59 trillion in assets. (source)

Sharkey, Howes & Javer Blog | Financial Planners in Denver, CO | What Data is Telling Us

Ready for Retirement

Baby Boomers, who make up the largest population group in the United States, are transitioning into retirement. Experts anticipate that 20% of the population will be over age 65 by 2030, up from 12.4% in 2003. With high numbers moving into retirement, we are likely to see Boomers begin the process of turning their investments into income streams. (source)

Sharkey, Howes & Javer Blog | Financial Planners in Denver, CO | What Data is Telling Us

Increase in Female Investors

75% of women report not working with a financial advisor, although women control over $11.2 trillion of the United States’ wealth. As millennials begin investing, we are likely to see an increase in female investors. More women are starting their own businesses and becoming financially savvy, making them more likely to start investing earlier than previous generations. (source)

Low Financial Literacy

29% of United States households own only retirement accounts and 38% of households have no investment accounts. In a survey to understand the financial literacy of investors, it was found that households with only retirement accounts or with no accounts are significantly less knowledgeable than households with taxable accounts. Even among households with taxable accounts, only 60% are considered to have high financial literacy. (source)

Data about investing and investors is fascinating to us. What is equally fascinating is deciding how the data should or should not influence investment strategies. If you are struggling to develop an investment strategy, reach out today for a complimentary consultation. We would love to talk data and investments with you!

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