Survey: Many consumers may not be thinking long-term

Jul 08, 2011

A report says older Americans may be thinking too short-term when assessing their financial future

A survey of financial planners reveals many American consumers may be taking too short-term an approach when it comes to dealing with financial matters, such as retirement planning and life insurance.

According to a report from Russell Investments, advisors said most of the clients they've dealt with in recent months have started investment conversations about short-term concerns, such as market volatility, government policy and global events. Advisors say they've more often than not had to steer the conversation toward long-term matters such as estate planning and inflation, issues that could have more of an affect on retirees' long-term financial health.

It could be many Americans are simply distracted by hot-button topics and disinterested in more pressing matters, said the report.

"The latest survey results underscore that the advisor has a critical role to play when it comes to helping clients focus and avoid becoming distracted by short-term market moves and big news stories," said Kristin Gibson, director of strategic distribution partnerships for Russell Investments.

The purchase of a term life insurance policy can help seniors get on the right step toward fruitful retirement planning, and a financial advisor can provide guidance on investment methods one might undertake to enhance that purchase.

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