Investor Confidence Still Low

The improving economy and the strong stock market we've seen don't seem to be having much of an effect on investor confidence. A recent study from Northstar Research found that 41 percent of all investors describe themselves as "conservative." Three years ago, in 2008, that number was only 22 percent. Over half of the surveyed investors said they were focused primarily on preserving their principal, while only 39 percent say they're focused on long-term growth.

Not surprisingly, these investors don't have a whole lot of optimism about reaching their long-term goals. Only 19 percent describe themselves as "very confident" that they'll meet their financial and retirement goals.

In the end, these two attitudes reinforce each other: Investors who have switched to short-term, crisis mode are not likely to meet their long-term financial goals. Investors under the age of 45 report that they keep 42 percent of their portfolios in short-term instruments such as CDs and money market accounts. That's not likely to lead to a comfortable retirement.