The fear and confusion that tormented American investors after the financial crisis struck in 2008 has in many cases given way to cautious optimism and a more disciplined approach to handling money, a survey by Fidelity Investments has found.
Investors have stashed more money in retirement plans – until recently, bond funds were the big winners – along with paying down debt, according to the survey from the big mutual-fund company.
Two-thirds of the 1,154 respondents reported being scared or confused in the aftermath of the crisis, Fidelity said. Nearly half said their household assets dropped significantly, with an average decline of 34%. One out of six heads of households lost their jobs, and one in three families experienced a large drop in income.
Despite that turmoil, 56% of the investors said they were no longer so fearful and have made positive changes in their financial mindset and behavior. Well over half said they feel better prepared for retirement than they did before the crisis.