As investment experts and analysts try to anticipate how 2011 develops in regards to the markets and the economy, it appears that investors are also in wait-and-see mode.

“According to the Russell Financial Health Index, investors’ confidence in their financial health remained just about even,” says Fred Pinto, managing director of distribution services at Russell Investments Canada Ltd.

Based on an online calculator that gauges the overall financial health of Canadian investors, the current index stands at 48 points, unchanged from the last time it was measured in the third quarter of 2010.

The index was at 51 points at the start of 2010. Higher points indicate greater financial optimism.

“The lack of change in investor confidence is common at this time of the year, due to a lack of major economic or market indicators pointing investors in a certain direction. This is where the value of a trusted advisor and expert investment advice comes in handy,” explains Pinto.

The index was able to identify investors’ areas of financial concern on a more personal level.

The three greatest financial concerns for Canadians relate to:
> having sufficient income for a desired lifestyle;
> having a reliable source of income; and
> leading a active and healthy lifestyle in retirement.

The issue of having a tangible, realistic financial plan was the fastest growing concern. Maximizing the tax-efficiency of investments was also listed as a growing issue for Canadians.

The Russell index gathers its data from a confidential web survey, which takes approximately five minutes to complete. Based on a user’s answers, a financial health score is assigned, which can be measured against the scores of other Canadian investors who have used the tool.