Denver investors are optimistic about the future

Investor Pulse Poll – Denver: Part 1

High net worth (HNW) investors in Denver are optimistic about the future, both for the country and their own portfolios, according to a new survey commissioned by Morgan Stanley Wealth Management. The poll, conducted from May to July of this year, surveyed 1,008 high-net-worth (HNW) investors across the United States, including 300 from Denver. Individuals who are considered HNW investors have $100,000 or more in investable household financial assets, excluding real estate holdings and retirement accounts.

Highlights from the poll reveal that nearly three-quarters of Denver’s affluent investors feel that the national economy will be the same or better in the next 12 months. Ninety percent expect the local economy to be the same or better, and 92 percent expect their household’s investment portfolios to be the same or better.  Also interesting to note is that many affluent investors expect their own investment portfolios to improve more than they expect the general investment climate to improve.

Outlook for retirement favorable among HNW investors

Confidence among affluent investors remains strong when considering their prospects for retirement. 91 percent of those not yet retired say they are confident in their retirement planning efforts. Among those retirees surveyed, 39 percent indicated their investment portfolio has exceeded their expectations with 45 percent saying it has performed as planned.

This confidence is in spite of the fact that only 20 percent of Denver’s affluent investors surveyed have reached their planned retirement savings goal (100 percent funded). Three quarters estimate they are at most 70-80 percent funded and only 24 percent have a specific retirement date, paving the way for additional planning needs.  Contrast this to current retirees, of whom 44 percent feel they have been able to meet their retirement savings goal.

Affluent investors feel their retirement savings will need to total on average $2.8 million to meet their desired lifestyle at retirement. Should investors discover closer to retirement that their savings is inadequate or less than expected; the majority of affluent investors would rather cut back on discretionary spending (83 percent) or adjust their lifestyle expectations for retirement (75 percent).

Curbing discretionary spending and adjustments to lifestyle supersede changing their charitable contributions (62 percent) or inheritance for their heirs (63 percent). Even fewer would consider moving to a different state (22 percent), changing their living accommodations (21 percent) or selling their vehicle (21 percent).