By D. Bruce Johnston, President, DBJ Associates

Investors aged 28-52 in the prime saving and asset accumulation phase of life are more likely to consider themselves their primary source of investment information and advice than any other source, including financial professionals or their employees, according to a new research report, Capturing the Heart & Wallets™ of Peak Accumulators™, which addresses investing habits and attitudes of the mid-career workforce.

The survey, which polled Core Workforce households in the fall of 2008, confirms that middle-aged investors feel very much alone:

Fact 1:  54% find it “difficult” or “very difficult” to “find the right resources for getting help with financial questions

Fact 2:  Only 18% work primarily with a financial professional, such as a broker, registered investment advisor, insurance, banking, mutual fund or on-line brokerage representative

Fact 3:  78% consult friends and family at least “sometimes”, but only 28% say “my friends seem to know how to invest”

Fact 4:  84% are “concerned” or “very concerned” about the “future of Social Security”

Fact 5:  Only 5% “agree strongly” that “my employer is responsible for providing for my retirement”

Fact 6:  Only 9% “agree strongly” that “I’m on track to accumulating the savings I’ll need to retire.”

Despite being the engine of future economic productivity, the report finds that middle-aged investors, or the so called Core Workforce, are largely being overlooked by the investment industry, including asset managers, insurance companies, banks and brokerage houses.  The 57 million households in this population segment currently have $5.2 trillion in investable assets across bank, taxable brokerage and retirement accounts.  Assets are currently concentrated among the 9 million most affluent households, which represent $4.0 trillion of that asset base.

According to the report, Younger Boomers (age 43-53) have more in common financially with Generation X  (age 28-42) than with Older Boomers (age 54-62).  Yet a 2007 survey of over 30 firms with $14 Trillion in assets conducted by Mast Hill Consulting found that 60% of industry “effort and investment” is directed to pre– and post-retirees, especially Older Boomers, while only 12% of industry “effort and investment” is dedicated to Generation X.

The report segments middle-aged investors into three behavioral groups.  The most attractive segment, Peak Accumulators, engages in six constructive financial behaviors: they spend less that they make, have an emergency fund, contribute something to a retirement plan each year, own their own home, have their insurance needs covered, and have little or no credit card debt.  The Hearts & Wallet report recommends that financial services providers actively build programs for Core Workforce investors that creatively dovetail with these behaviors.

“While others focus on serving Older Boomers, there is a terrific opportunity for nimble, forward thinking service providers to re-connect with this audience and establish a first-mover advantage,” concludes the reports sponsors, Boston based Mast Hill Consulting and Sway Research, LLC.

Additional information about the study is available through DBJ Associates.  Please contact Bruce Johnston at www.bruce@dbjassociates.com.