Good points – also, trust is a big thing going forward. And keeping investment principle is more important than returns. Once biten, twice shy….
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Americans Place a Renewed Premium on Trust
In keeping with consumers’ new appetite for security comes greater demand for predictable returns and guarantees. Eight in ten (80%) of those surveyed report that they are now more concerned with guarantees and stability than they are with returns; among Silents and Boomers, the percentages opting for stability over returns climbs to 91% and 84% respectively. While only 17% of Americans have already rebalanced their investment portfolios to reflect heightened appetite for stability, an additional 33% plan to take this step as a result of the financial crisis.
The reputation of financial services organizations — like guarantees — is increasingly important to Americans as they build and/or reinforce their safety nets. More than nine in ten (91%) Americans agree with the statement “It is more important than ever to understand the financial health of the companies I do business with or am considering doing business with,” including 51% who strongly agree.
Despite budgetary pressures, 68% of Americans say they are generally willing to pay more for financial and protection products if they come from a company they trust. Two in ten (20%) Americans strongly support the idea of a “trust premium”; an additional 48% support it somewhat.
