Study Links Good Financial Habits to Achieving Happiness

Morgan Stanley’s Investor Pulse poll highlights that while most investors hold an optimistic outlook-worries about their financial futures remain.

Courtesy of: Michael L. Beers, CIMA(R), CRPS(R)
Senior Vice President
Family Wealth Advisor
Corporate Retirement Director
Morgan Stanley Easton
Phone Number: 614.269.3401
Web Address: fa.morganstanley.com/fortis

From record-breaking stock market returns to falling unemployment, the U.S. has no shortage of positive economic indicators, and the majority of investors say they feel confident about achieving both their short-and long-term goals, according to the latest “Morgan Stanley Investor Pulse Poll,” which surveyed more than 1,200 investors age 25 to 75 with over $100,000 in assets. About one in four (29%) – or 36 million – U.S. households fall into this category.

Mostly Sunny, With Some Clouds
Investors are upbeat overall, with about 9 in 10 either “somewhat” or “very” happy with their financial situation today. Also, nearly 9 in 10 expect their portfolios to stay strong or improve in the coming year. Most (91%) believe they’re solidly on track to realize long-term goals like:

  • Saving for retirement
  • Paying off a mortgage
  • Transferring their wealth to the next generation
  • Paying for a child’s or grandchild’s education

Nearly all (93%) are confident they’ll achieve short-term goals like paying for travel, home and car expenditures.

Still, the investors polled aren’t entirely carefree. More than two-thirds (67%) fear running out of money in their lifetime and 56% are uneasy about being able to maintain their standard of living.

Having enough money to manage retirement and unexpected medical costs are key concerns shared by more than half (56% and 52% respectively) of investors, and two-thirds (69%) are concerned about how the political climate will affect their finances.

Even Millennials polled say they are worried about retirement, with 72% of them concerned about having adequate funds, while 69% are uneasy about making that money last a lifetime.

Of investors ages 45 and above, about 9 in 10 wish say they wished they had started saving for their goals earlier, with nearly half highlighting retirement in particular.

What can explain this apparent paradox between investor optimism and concern? In a nutshell: a lack of planning. Many investors admit they need help with finances, but fail to seek it.

The Advantage of Planning with a Financial Advisor
Roughly half of all investors working with a professional are looking for help with a written plan that includes budgeting, expenditures, and investments. Still, only one in three investors has a professionally prepared financial plan. Many apply a do-it-yourself approach (27%) or have no plan at all (36%).

Of the 36% of investors who do opt for a professionally prepared, goal-driven plan, 80% credit their financial advisors with their financial success.

Happier Investors Practice Good Financial Habits
Investors surveyed who reported being happiest overall also say they are less troubled by financial worries than their peers. They’re less concerned about issues like having enough money for retirement or unexpected medical expenses.

What’s their secret? They practice healthy financial habits like having a financial plan in place, meeting short-term and long-term goals, and discussing finances with their significant other.

Working with a trusted professional familiar with your financial situation to develop a personalized plan driven by your goals can help build financial confidence in good times and bad. When those plans are combined with good financial habits, investors can move toward goals including buying a home, retirement, travel or paying for education. Contact me via the information below to build your plans today.

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Sources/Disclaimer
This material has been prepared for informational purposes only. It does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. Morgan Stanley Smith Barney LLC (“Morgan Stanley”) recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a Morgan Stanley Financial Advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.

Article by Morgan Stanley and provided courtesy of Michael L. Beers, Morgan Stanley Financial Advisor

If you’d like to learn more, please contact:
Michael L. Beers
Senior Vice President
Family Wealth Advisor
Corporate Retirement Director
The Fortis Group at Morgan Stanley
4449 Easton Way, Suite 300
Columbus, OH 43212
(P) 614.269.3401
(E) Michael.Beers@morganstanley.com
(W) fa.morganstanley.com/fortis

By providing this third party publication, we are not implying an affiliation, sponsorship, endorsement, approval, investigation, verification or monitoring by Morgan Stanley of any information contained in the publication.

Michael L. Beers may only transact business, follow-up with individualized responses, or render personalized investment advice for compensation, in states where [he/she] is registered or excluded or exempted from registration, fa.morganstanley.com/fortis

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