One would think that wealthy people who retire are set for a long and happy retirement. But because many of them invest their nest eggs too conservatively, even they could be ill-prepared for a retirement that could last as long as 30 years, Reuters reports, citing survey by Opinion Research.
Thirty-eight percent of the 500 high-net-worth people in their 60s said they would invest more conservatively during retirement, and only 29% are invested in stocks or equity funds. The study also found that many wealthy Americans are prone to decrease their savings through generous gifts to their children, with 43% saying they plan to help them with down payments on a house.
"If people will spend 30 years in retirement, they will need enough capital to invest for the sake of growth to keep their purchasing power intact," said Jim Bell, founder and president of Bell Investment Advisors, which commissioned the study.