Investors Favor Annuities, Protection Over 60/40 Allocation: Survey
December 14, 2021 by Michael S. Fischer
As part of a new study, Alliance for Lifetime Income and CANNEX asked investors to build their own hypothetical $1 million portfolio. Here’s what respondents came up with.
Investors allocated 20% of their portfolio to dividend-paying stocks, $200,000; 14% to real estate, about $145,000; and 13% to annuities, $136,000. They rounded out their top five asset category choices by allocating 11% to bank CDs and 10% to bonds.
They allocated only 3% to 4% to “trending” investment opportunities, such as cryptocurrency and special purpose acquisition companies.
According to the alliance and CANNEX, the findings contradict the long-standing 60/40 strategy in which 60% of a retirement portfolio’s assets are invested in stocks, while the remaining 40% are invested in bonds — an approach originally designed to simultaneously grow assets and provide income.