Half of GenX investors, 46 percent of Boomers and 45 percent of Matures believe they "need the help of professionals," up roughly 10 percent across the board from 2004. According to the survey, investors also acknowledge the need for more comprehensive financial planning. Among investors who do not currently have a financial plan, 56 percent of GenXers and 39 percent of Boomers expect to need one in the future, up from 50 percent and 35 percent respectively in 2004.

Five years after the peak of the dot-com investing era, more investors admit they need help to save and to plan for those savings. While "not having enough discretionary income" is the most frequently cited reason for not saving or investing more -- mentioned by approximately half of all survey respondents -- a significant percentage of investors procrastinate and/or lack confidence.

More than one in ten of the GenXers (11 percent) and Boomers (10 percent) surveyed say they simply "haven't gotten around to" saving/investing more; and 14 percent of GenXers and Boomers admit they "don't have enough time/financial knowledge to make prudent investment decisions."

Today, approximately half of GenXers work with an investment professional of some kind. In addition, roughly one in five (21 percent) expects to begin working with a financial advisor over the next three to five years, as do 14 percent of Boomers.

The survey also found that GenX and Baby Boomer investors -- a combined population nearly 133 million strong -- are holding cash out of the market. Thirty-seven percent of GenXers, 32 percent of Boomers and 23 percent of Matures have moved cash to the sidelines over the past six months. 

"The fact that many of them are stashing their cash represents a challenge for financial advisors to get them to take action," according to Beverly Moore, Managing Director of Wealth Strategies at MainStay Investments. "While nearly half of all investors recognize that they need help from investment professionals, a significant number of GenX and Boomer investors have not yet sought out that advice," said Moore.

Finally, the survey found a reversing the trends of 2004, investors across all age groups are seeking out more conservative investment options. An exuberant market in the twelve months preceding the survey in 2004 (S&P 500 return March '03 through February '04: 38.54%) may have led investors to feel comfortable with a more aggressive approach.

"Investors who change their investment approach -- and shift assets as a result -- based on the recent history in the capital markets are far more likely to do damage to their long-term financial well-being than those who follow a comprehensive financial plan," said Moore. "We're seeing a real disconnect between investors' attitudes and their lifetime goals. They're driving by the rear-view mirror."

For a copy of the "MainStay Investments Across Generations 2005 Survey" white paper, which provides the highlights of investment attitudes and behaviors of GenXers, Baby Boomers and Matures, contact Meghan Lantier, Bliss, Gouverneur & Associates at (212) 840-1661 or via email at Meghan@blisspr.com