The ambitious investor
IG clients say their investing is a means of providing for their retirement and making themselves financially independent rather than funding a luxury lifestyle or increasing their social status.
Over half those surveyed said that saving for retirement was their main goal, followed by becoming financially independent, with other goals such as saving for children's education and for holidays goals for significant minorities. There is a generational split, with younger clients more likely to be saving for a property.
In this period of higher interest rates and rising inflation, which have put a squeeze on consumer incomes around the globe, it is hardly surprising that IG clients view investing as a means of supporting and indeed boosting their lifestyle, while also looking to become self-sufficient. 'Peace of mind' and 'providing for my family' also rank very highly, something that will no doubt feature more heavily in years to come as house prices rise and the young find themselves having to find the money to get on the housing ladder.
IG clients value the independence and intellectual challenge of choosing their own investments, and the potential to outperform both market 'experts' and benchmark indices like the S&P 500. In addition, the cost of fees and their impact on returns feature highly, as awareness of low-cost investment vehicles like exchange traded funds (ETFs) spreads. Fees and commissions eat into returns, and the shift to ETFs has helped individual investors to improve their returns over the long-term.
The vast majority of those surveyed think that education, knowledge and planning are crucial to success , and only a small minority believe that success in investing is down to luck. This reflects the importance placed on education at IG, through its Academy and its series of seminars, webinars and other client events.
Similarly, clients know that patience and self-discipline, both key elements in IG's education programme, are crucial for investing success. Too many investors don’t take the time to learn about discipline and risk management, but those that do find the markets much more rewarding as a result.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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