Investing as an Employed Investor


One of the primary reasons an investor starts a professional relationship with a financial advisor is to plan for retirement. But the wise investor begins that planning years before he or she intends to retire.

 Today, the working world is an entirely different place than it was one year ago. Investors who are employed have seen much of their work routine impacted by the coronavirus, and they are likely to have an entirely different set of questions and concerns regarding investments and investing than they had one year ago.

Spectrem’s new study Working with the Working Investor examines the mindset of investors who is still gainfully employed, and who have an entirely unique set of pressures to deal with than that of retired investors.

The following are some of the ways working investors approach the task of investing, with an eye toward the day they are no longer working:

  • A majority of working investors like to be actively involved in management of their investments, and enjoy the process. But they may find it difficult to manage their portfolio and their work at the same time. Investors can maintain their interest in investing by working with their advisors to understand how a routine of checking account balances and regular communication can produce better return rates on investments.
  • Working investors are performing a balancing act with their portfolio and investable assets. While paying for their immediate needs, which includes a mortgage and perhaps a child’s education, they are also attempting to create a retirement income stream they can access when they are no longer working. It’s all a bit much to handle, and very difficult to maintain a watchful eye on every angle of your investing strategy. Ask your advisor to assist you in understanding when your investment needs change and how current events can impact future returns.

  • Personal concerns for working investors change as the investor ages. Millennials and Gen X investors are likely thinking about paying for their children’s education, but some may already be considering the health care needs of their aging parents. These concerns change over time, and investors need to recognize when their situation changes, and discuss those changes with their advisor to make certain their investments are pointed in the correct direction.

The Spectrem study examines working investors from all possible angles of their investing and financial needs and interests, and occasionally compares them to retired clients to indicate how those two groups differ.

No matter where you are in your work life, your investing needs and strategies can change from day to day, or from time to time. Make it a habit to reconsider your situation with your advisor on a regular basis to make sure you are up to date with your needs based on your current and future employment focus.