There is nothing typical about the “typical’ Baby Boomer investor. There are 74.9 million Baby Boomers ages 51 to 69. A new Spectrem Group demographic study, “Baby Boomer Investment Personas”, finds five primary character traits that run the gamut from independent to advisor dependent. In part three of our series, we consider Moneybags.
There are Baby Boomers who used a conservative approach to investments to create great personal wealth. In the Spectrem study “Baby Boomer Investment Personas”, these people are called Moneybags.
The Spectrem report focused on Baby Boomers with a net worth of at least $1 million.
Moneybags has an average net worth of $5.4 million, which was accrued in great part through conservative investments, more conservative than the other Baby Boomer Personas. One reason for the conservative approach is that the Moneybags persona is populated by more females than males (53 percent to 47 percent).
There are Moneybags that have a riskier approach to investing, but 89 percent of Moneybags call themselves either conservative or moderate investors. As such, they are far more likely to invest in products that provide a guaranteed rate of return (51 percent) and prefer to invest in products from the United States (76 percent). They are more likely to invest in cash vehicles, real estate and annuities.
87 percent have an advisor, but 83 percent believe their advisor is not looking out for their best interests.
56 percent are concerned about maintaining their financial position. Sixty-three percent express concern over maintaining their current financial situation (to 53 percent of the average investor). The future is also on the mind of Moneybags, who worry about living in a care facility someday (57 percent to 53 percent on average) and worry about the financial situation of their grandchildren (49 percent to 42 percent).
It is also perhaps telling that the more conservative investor like Moneybags would have less interest in using their wealth to help others (20 percent to 26 percent on average).