Mass-affluent investors are concerned about the impact of increased taxes on their investments and are open to learning more about annuities, 401(k)s and other tax-advantaged products, according to a recent poll by Nationwide Financial.
Investors with $150,000 to $249,000 in income are especially receptive to learning about annuities. Half of the investors in this income bracket said they want more education on the products, compared with 41% of the broader mass-affluent segment, as defined in the poll as those investors having investable asset of more than $250,000.
They are also more open to making portfolio adjustments, with 52% believing that changes can be made to prepare their portfolio for the anticipated tax increases. Only 36% of all respondents believed they can make adjustments to their portfolio to prepare for the tax code changes.
“According to our survey data, men and women 35-64 with income of $150,000-$249,000 may represent the ripest sales opportunities,” says Eric Henderson, senior vice president of Life Insurance and Annuities for Nationwide Financial.
Middle-aged investors ages 35 to 54 are more likely than older investors to want more education on annuities, life insurance, and 401(k) plans, the survey finds. They are also less resistant to making portfolio adjustments, with only 31% saying they won’t make any portfolio adjustments as a result of new taxes compared to 45% of investors 55 or older.
Women may also represent an interesting demographic. While women were less worried than men about the impact of the tax changes on their household income or asset values, they expressed far less confidence than men about their knowledge of the tax advantages of annuities, life insurance and 401(k) plans. They were also less likely than men to have met with a financial adviser to talk about how taxes may impact their portfolio, with just 5% having done so at the time of the survey, compared with 13% for men.
Margarida Correia is Associate Editor of
