According to a new survey, millionaires’ confidence in the economy dropped considerably in February. OnWallStreet.com reports that the Spectrem Group, a research firm, revealed that millionaires who had $1 million or more in investable assets had their investment outlook drop 10 points in February, reaching the number 1, according to the Spectrem Affluent Investor Confidence Index. Those with $500,000 or more in investable assets dropped their investment outlook three points, going down to -7.

George Walper, Jr., president of the company, said that “The level of Millionaire investors who indicated they planned to stay on the sidelines and not invest was at its highest since September 2011.”

The company conducts 250 interviews a month “with financial decision-makers who have more than $500,000 of investable assets,” OnWallStreet.com says. The interviews range from bullish to neutral to bearish. A rating of 11 to 51 is bullish, 10 to -10 neutral, and -11 to -51 bearish.

OnWallStreet.com says that what investors expected their household income to be in the future dropped to -9.51, the lowest in nearly four years. Faith in the economy also dropped, to -6.95.

Written by Lisa Swan

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While some financial advisors say that retirees should take out 4% of their retirement savings each year, how many people actually heed that advice? That’s what a recent survey by Edward Jones set out to discover.

OnWallStreet.com reports reportsthat the investment firm asked 1,011 people how much they thought they needed each year during retirement. They found that 34% “have no idea how much they will need to withdraw each year,” the article says, while 25% thought they would spend more than 10% of their retirement funds each year, a drawdown rate significantly larger than that recommended 4% per year. Edward Jones also discovered that of those already retired, 15% are planning to spend more than 10% of the retirement funds each year.

“While it is difficult to estimate exactly how much Americans will spend during their retirement years,” Scott Thoma of Edward Jones says, “there are a number of factors to consider when building a retirement plan, such as healthcare risks, changes in Social Security and the type of lifestyle they want to lead.” Thoma says that “It is important they work with their financial adviser to make sure their savings strategies are in line with their retirement goals, as well as incorporating reasonable expectations for acceptable withdrawal rates, which we believe should start in the neighborhood of 4%.”

Written by Lisa Swan

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