JC Sterling and Roth Survey: Investor Optimism Surges 21 Points in Q1

Two-thirds of investors say they are not relying on home equity to fund retirement.More than three-quarters of non-retirees confident they will have enough saved for retirement.Investors More Upbeat About the Financial Markets as a Place to Grow Wealth, but Ambivalent About Investing in Stocks for Retirement.

Nearly seven in 10 investors, 68%, believe it’s a good time to invest in the financial markets, similar to the 56% saying this at the end of 2014, up from 52% last July. This is also a switch from several quarters in 2011 and 2012 when the majority said it was not a good time to invest.

More than half of investors (56%) say they have seen a noticeable increase in their retirement account values as the stock market has increased this past year, up from 44% two years ago.

Among non-retired investors, 76% say they are “very confident” or “somewhat confident” they will have enough savings for retirement at the time they choose to retire, up from 62% recorded two years ago.

Investors Not Relying on Home Equity to Fund Retirement

When investors were asked which is a better way to grow wealth, a majority – 64% – say “saving and investing in the stock market” while 31% say “through buying a home.” The preference for investing in the stock market for wealth creation is even stronger among retirees, at 71%, than among non-retirees, at 65%.

The 83% of investors who own their primary residence were asked if they plan to use their home equity as a source for retirement. Among these homeowners, 21% say they will “use some” equity, while 67% say they will not use any home equity to help fund retirement.

“The data is pretty clear that tapping home equity as a retirement strategy is not a choice that a majority of investors plan on making. Saving and investing seem to be the predominant choice for retirement,” said Timothy Kerridge, Market Strategist at JC Sterling & Roth.

“People may have an improving outlook about investing, but when it comes to investing for retirement, there is still wariness and concern about managing their risk,”

J.C. Sterling & Roth develops and manages sophisticated tailor-made investment solutions and wealth advisory services to create lasting value for our clients and partners. www.jcs-roth.com