The following questions pertain to consumer views about money and investing.

Transcription

1 Millennial and Baby Boomer Investors Survey: Data Report Securian Financial Group June 2016 The following questions pertain to consumer views about money and investing. 1. Do you have investments outside an employer sponsored retirement plan/401(k)? (Choose One) Yes 100.0% % % 957 No 0.0% 0 0.0% 0 0.0% 0 Total Responses 100% % % Do you currently invest in any of the following? (Choose all that apply) Mutual funds 57.6% % % 565 Employer sponsored retirement plan/401(k) 65.6% % % 565 Individual stocks 58.1% % % 601 Money market funds 39.8% % % 427 Fixed income (including individual bonds or bond 24.0% % % 234 mutual funds International investments (any type, stock, mutual 20.0% % % 157 funds, etc.) Certificate of deposit (CDs) 40.2% % % 344 Exchange traded funds (ETFs) 22.2% % % 170 Investment in real estate properties or Real Estate 20.7% % % 180 Investment Trusts (REITs) Cash value life insurance policy or individual annuity 30.8% % % 332 1

2 Individual Retirement Account (IRA) or Roth Individual Retirement Account (IRA) Other investments (e.g., hedge funds, private equity) 61.5% % % % % % 56 Total Responses Answers piped in from Q2: 3. Please rank your investments according to your return expectations, with "1" being the type of investment you count on the most for a successful return, "2" being the second highest return, and so on. Top 4 Investments Total Millennials Baby Boomers (Rank 1, 2 or 3) Employer sponsored retirement plan/401(k) 49.8% % % 426 Individual retirement Account (IRA) or Roth Individual Retirement 41.8% % % 489 Account (IRA) Mutual Funds 41.4% % % 428 Individual Stocks 41.2% % % 420 Total Responses

3 Mutual funds Employer sponsored retirement plan/401(k) Individual stocks Money market funds Fixed income (including individual bonds or bond mutual funds International investments (any type, stock, mutual funds, etc.) Certificate of deposit (CDs) Exchange traded funds (ETFs) Investment in real estate properties or Real Estate Investment Trusts (REITs) Total Responses Count % by Row 29.0% 27.8% 16.4% 11.0% 7.3% 4.2% 1.9% 1.3% 0.4% 0.5% 0.3% 0.0% 100.0% Count % by Row 43.6% 19.0% 14.1% 11.4% 4.9% 2.9% 1.4% 1.2% 0.8% 0.3% 0.3% 0.0% 100.0% Count % by Row 32.9% 22.4% 16.8% 11.6% 8.6% 3.6% 2.1% 1.1% 0.4% 0.1% 0.4% 0.0% 100.0% Count % by Row 10.1% 13.7% 18.9% 14.6% 14.2% 9.3% 8.5% 4.8% 3.0% 2.1% 0.8% 0.0% 100.0% Count % by Row 10.7% 13.1% 14.6% 14.3% 15.6% 10.7% 9.6% 6.2% 2.1% 1.7% 1.1% 0.2% 100.0% Count % by Row 13.2% 19.1% 19.9% 16.3% 10.3% 8.5% 5.9% 2.8% 1.3% 1.6% 1.0% 0.0% 100.0% Count % by Row 9.2% 17.3% 18.0% 14.4% 13.4% 10.3% 8.7% 4.5% 2.4% 1.3% 0.5% 0.0% 100.0% Count % by Row 11.6% 22.3% 22.7% 13.2% 10.0% 9.5% 4.2% 3.5% 1.9% 0.9% 0.2% 0.0% 100.0% Count % by Row 18.6% 18.9% 19.9% 13.6% 10.4% 5.2% 6.0% 3.0% 2.2% 1.0% 1.2% 0.0% 100.0% 3

4 Cash value life insurance policy or individual annuity Individual Retirement Account (IRA) or Roth Individual Retirement Account (IRA) Other investments (e.g., hedge funds, private equity) Total Responses Count % by Row 6.8% 13.9% 15.9% 15.9% 13.3% 12.8% 7.6% 6.1% 5.0% 1.7% 1.0% 0.0% 100.0% Count % by Row 22.9% 25.4% 20.7% 13.7% 7.3% 4.5% 2.9% 1.4% 0.7% 0.4% 0.2% 0.0% 100.0% Count % by Row 35.0% 19.0% 12.0% 13.0% 7.0% 6.0% 1.0% 3.0% 2.0% 2.0% 0.0% 0.0% 100.0% 4. Which of the following best describes your level of investment knowledge? (Choose One) You are very knowledgeable about investments You are fairly knowledgeable, but not entirely comfortable with all aspects of investing You are not very knowledgeable about investments, but you do understand some things You are not at all knowledgeable about investments 30.2% % % % % % % % % % % 9 2.3% 22 Total Responses 100% % % 957 4

5 5. To feel secure in retirement, how much money do you believe you will need to save? (Open-ended) $0 to $10, % % % 15 $10,001 to $50, % % % 6 $50,001 to $100, % % % 27 $100,001 to $200, % % % 32 $200,001 to $300, % % % 50 $300,001 to $400, % % % 21 $400,001 to $500, % % % 157 $500,001 to $600, % % 9 1.5% 14 $600,001 to $700, % % 7 1.2% 11 $700,001 to $800, % % % 68 $800,001 to $900, % % % 13 $900,001 to $1,000, % % % 255 $1,000,001 to $1,500, % % % 65 $1,500,001 to $2,000, % % % 94 $2,000,001 to $3,000, % % % 45 $3,000,001 to $4,000, % % % 6 $4,000,001 to $5,000, % % % 23 $5,000,001 to $6,000, % 2 0.2% 2 0.0% 0 $6,000,001 to $7,000, % 7 0.6% 6 0.1% 1 $7,000,001 to $8,000, % 3 0.3% 3 0.0% 0 $8,000,001 to $9,000, % 4 0.3% 3 0.1% 1 $9,000,001 to $10,000, % % % 11 $10,000,001 to $50,000, % % % 12 $50,000,001 to $100,000, % % 3 0.8% 8 $100,000,001 and above 1.5% % % 16 Total Responses 100% % % 951 5

6 Not Answered Mode $1,000,000 $1,000,000 $1,000,000 Median $1,000,000 $800,000 $1,000, How confident are you in your ability to reach this savings amount by retirement? (Scale 0 to 10) Not at all confident 3.2% % % % % % % % % % % % % % % % % % % % % % % % % % % % % % 95 Very confident 16.8% % % 157 Total Responses 100% % % 943 Not Answered Top 3 Box 48.7% % % 421 Mean Median

7 7. What sources do you turn to for investment advice? (Choose all that apply) Financial advisor 64.8% % % 617 Stock broker 18.4% % % 94 Bank 28.0% % % 138 Family 41.6% % % 273 Friends 29.1% % % 176 Blogs 16.3% % % 65 Money managements websites (e.g., Mint, 39.3% % % 278 E*Trade) Financial services companies' websites (e.g., bank websites, 35.2% % % 321 insurance company websites) Print and online news outlets (e.g., The Wall street Journal, Kiplinger's 32.5% % % 371 Personal Finance, Money) Social media sites (e.g., Facebook, LinkedIn, 7.9% % % 28 YouTube) Other, please specify* 2.0% % 2 3.9% 37 Total Responses Not Answered

8 8. Which of the following ranges best describes the approximate amount of your current investable assets (including 401(k))? (Choose One) Less than $100, % % % 89 $100,000 to less than $500, % % % 417 $500,000 to less than $1 million 25.6% % % 289 $1 million to less than $5 million 12.1% % % 149 $5 million or more 1.2% % % 11 Total Responses 100% % % 955 Not Answered Which of the following best describes your investment style? (Choose One) Very conservative investor: You are very concerned by short-term fluctuations in your account value and wish to protect your account value from loss. Conservative investor: You may be worried by significant short-term fluctuations in your account value and may prefer slow but steady, long-term growth. Moderate investor: You are able to tolerate some fluctuation in your account value. You are concerned with the safety of your money but want investment returns that can outpace inflation. 11.4% % % % % % % % % 461 8

9 Aggressive investor: You are able to tolerate significant short-term fluctuations in your account value and seek long-term growth. Very aggressive investor: You seek maximum longterm growth and are very comfortable with significant short-term fluctuations. 14.0% % % % % % 12 Total Responses 100% % % 909 Not Answered What is your current level of confidence in the stock market? (Scale 0 to 10) Not at all confident 1.0% % 2 1.9% % % 4 1.3% % % % % % % % % % % % % % % % % % % % % % % % % 30 Very confident 6.9% % % 16 Total Responses 100% % % 940 Not Answered Top 3 Box 31.2% % % 188 Mean Median

10 11. How often do you check your investment portfolio? (Choose One) Annually 6.7% % % 51 Quarterly 21.5% % % 221 Monthly 29.5% % % 264 Weekly 28.0% % % 256 Daily 13.3% % % 148 Never 1.0% % 6 1.5% 14 Total Responses 100% % % 954 Not Answered How often do you rebalance or make investment portfolio changes? (Choose One) Annually 24.9% % % 301 Quarterly 36.2% % % 362 Monthly 22.1% % % 146 Weekly 8.7% % % 39 Daily 1.9% % % 16 Never 6.1% % % 92 Total Responses 100% % % 956 Not Answered

11 13. If you received a gift or inheritance of $10,000, what would you do with it? (Choose all that apply) Invest all or some of the money Save the money in a savings account at the bank Spend all or some of the money Make a charitable contribution Give a gift to family members 69.1% % % % % % % % % % % % % % % 105 Other, please specify 3.5% % % 46 Total Responses If you received a gift or inheritance of $50,000, what would you do with it? (Choose all that apply) Invest all or some of the money Save the money in a savings account at the bank Spend all or some of the money Make a charitable contribution Give a gift to family members 73.8% % % % % % % % % % % % % % % 181 Other, please specify 4.7% % % 56 Total Responses

12 15. What is your personal definition of a volatile market? Open ended question; common terms in responses included unpredictable, instability, up and down, swings, large movements and rapid movements 16. Please indicate your level of concern around: (Scale 0 to 10) Recent market volatility No concern at all 1.4% % % % % % % % % % % % % % % % % % % % % % % % % % % % % % 54 High level of concern 9.8% % % 66 Total Responses 100% % % 929 Not Answered Top 3 Box 36.1% % % 272 Mean Median

13 Future market volatility affecting your ability to reach your financial goals No concern at all 1.2% % % % % 7 0.9% % % % % % % % % % % % % % % % % % % % % % % % % 92 High level of concern 12.5% % % 98 Total Responses 100% % % 924 Not Answered Top 3 Box 44.2% % % 364 Mean Median

14 Protecting yourself from a volatile market No concern at all 0.9% % 7 1.2% % % 5 0.7% % % % % % % % % % % % % % % % % % % % % % % % % 92 High level of concern 16.1% % % 131 Total Responses 100% % % 916 Not Answered Top 3 Box 48.9% % % 398 Mean Median

15 Understanding the reasons behind a volatile market No concern at all 1.0% % 7 1.4% % % 7 1.3% % % % % % % % % % % % % % % % % % % % % % % % % 77 High level of concern 12.4% % % 91 Total Responses 100% % % 904 Not Answered Top 3 Box 44.4% % % 335 Mean Median

16 17. When it comes to making investment decisions, which of the following most typically describes you? (Choose one) You rely on a financial advisor or broker to make most or all investment decisions You regularly consult with a financial advisor regarding investment needs, but make most of the final decisions You make most of your own decisions, but use a financial advisor for specialized needs such as retirement planning, asset allocation advice or selecting alternative investments You conduct research online, and make your decision based on the information you find You consult online money management sites (e.g., Mint, E*Trade) to determine investment decisions You make investment decisions on your own Other, please specify* 20.3% % % % % % % % % % % % % 0 0.0% 0 0.0% 0 7.2% % % % % 2 0.8% 8 Total Responses 100% % %

17 Q18 and Q19 asked if responder chose A, B or C in Q How confident are you in your financial advisor/broker's ability to help you manage market volatility? ( Scale 0 to 10) Not at all confident 0.1% 2 0.1% 1 0.1% % 7 0.2% 2 0.7% % 5 0.2% 2 0.4% % 8 0.4% 3 0.7% % % % % % % % % % % % % % % % % % % 93 Very confident 11.5% % % 52 Total Responses 100% % % 687 Not Answered Top 3 Box 54.9% % % 345 Mean Median

18 19. How likely are you to follow your financial advisor/broker's advice during a volatile market? (Choose one) Very unlikely 4.4% % % 32 Somewhat unlikely 9.1% % % 48 Somewhat likely 51.6% % % 372 Very likely 35.0% % % 247 Total Responses 100% % % 699 Not Answered Mean Median How do you typically react to a falling market? (Choose one) Sell my shares 9.2% % % 15 Leave my shares (no change) 47.3% % % 563 Buy more shares 21.8% % % 184 Shift existing shares to different investments Other, please specify* 18.7% % % % % % 42 Total Responses 100% % % 953 Not Answered

19 21. If the market experienced a large number of losses in a short period, at what point would you take action on your investments? (Scale Loss 0% to 100%) 0-4% 4.5% % % % 3.1% % % % 8.4% % % % 5.6% % % % 14.2% % % % 9.7% % % % 9.2% % % % 1.9% % % % 7.1% % % % 1.4% % % % 15.3% % % % 0.7% % 8 0.5% % 4.5% % % % 1.1% % % % 2.6% % % % 3.6% % % % 2.4% % % % 0.5% % 8 0.2% % 1.0% % % % 1.0% % % 3 100% 1.7% % % 13 Other* 0.5% % 8 0.2% 2 Total Responses 100% % % 950 Not Answered Mode

20 22. How do you typically react to a rising market? (Choose one) Sell my shares 15.0% % % 72 Leave my shares (no change) 49.6% % % 575 Buy more shares 19.8% % % 128 Shift existing shares to different investments Other, please specify* 13.3% % % % % % 35 Total Responses 100% % % 949 Not Answered If the market experienced a large number of gains in a short period, at what point would you take action on your investments? (Scale Gain 0% to 100%) 0-4% 6.3% % % % 2.9% % % % 7.5% % % % 5.7% % % % 11.3% % % % 10.4% % % % 9.1% % % % 2.3% % % % 5.2% % % % 1.3% % % % 16.5% % % % 0.8% % % % 3.7% % % % 0.6% % 8 0.3% 3 20

21 70-74% 1.9% % % % 3.5% % % % 2.2% % % % 0.8% % % % 1.7% % % % 0.6% % 8 0.3% 3 100% 5.0% % % 34 Other* 0.9% % % 5 Total Responses 100% % % 948 Not Answered Mode What kind of market do you anticipate over the next 1 to 3 years? (Choose one) Bull market: A prolonged period in which investment prices rise faster than their historical average Bear Market: A prolonged period in which investment prices fall, accompanied by widespread pessimism 60.8% % % % % % 475 Total Responses 100% % % 951 Not Answered

22 Demographic Questions A. Gender Male 48.8% % % 448 Female 51.2% % % 509 Total Responses 100% % % 957 B. What is your age? (Choose One) Response Frequency Count 18 to % % % % % % % % or older 0.0% 0 Total Responses 100% 1997 C. Which of following best describes your marital status? Single, never married 10.5% % % 45 Married 78.9% % % 777 Divorced/Separated 4.3% % % 72 Widowed 1.6% % 4 2.9% 28 Unmarried, living with partner 4.7% % % 35 22

23 Prefer not to say 0.1% 1 0.1% 1 0.0% 0 Total Responses 100% % % 957 D. What is the highest degree or level of school you have completed? High school graduate, diploma or the equivalent (e.g. GED) Some college credit, no degree 5.1% % % % % % 148 Associate degree 9.4% % % 105 Bachelor's degree 43.3% % % 389 Master's degree 24.0% % % 194 Doctorate degree 7.2% % % 54 Prefer not to say 0.1% 2 0.1% 2 0.0% 0 Total Responses 100% % % 957 E. Which of the following best describes your employment status? Employed full time 69.3% % % 487 Employed part time 6.9% % % 80 Self employed 7.2% % % 104 Retired 11.7% % % 233 Out of work, but not currently looking for work 4.6% % % 48 Prefer not to say 0.4% 7 0.2% 2 0.5% 5 Total Responses 100% % %

24 F. What is your total annual household income? (Choose One) Less than $50, % 0 0.0% 0 0.0% 0 $50,000 - $74, % % % 0 $75,000 - $124, % % % 611 $125,000 - $199, % % % 289 $200,000 - $300, % % % 43 Over $300, % % % 14 Total Responses 100% % % 957 G. What is your current level of retirement savings? Less than $25, % % % 8 $25,000 - $49, % % % 14 $50,000 - $99, % % % 94 $100,000 - $249, % % % 200 $250,000 - $499, % % % 211 $500,999 - $999, % % % 253 $1 million to less than $5 million 9.5% % % 141 $5 million or more 1.0% % 9 1.0% 10 Unsure 0.4% 8 0.3% 3 0.5% 5 Prefer not to say 1.7% % % 21 Total Responses 100% % %

25 H. What state do you live in? Response Frequency Count Alabama 1.1% 21 Alaska 0.5% 9 Arizona 1.5% 30 Arkansas 0.4% 8 California 13.9% 278 Colorado 1.5% 30 Connecticut 1.5% 30 Delaware 0.4% 8 District of Columbia 0.2% 3 Florida 7.7% 154 Georgia 2.9% 57 Hawaii 0.7% 13 Idaho 0.3% 5 Illinois 4.2% 83 Indiana 1.5% 29 Iowa 1.1% 21 Kansas 0.8% 15 Kentucky 0.8% 16 Louisiana 0.8% 15 Maine 0.6% 11 Maryland 2.4% 48 Massachusetts 2.2% 43 Michigan 3.0% 60 Minnesota 1.4% 27 Mississippi 0.3% 6 Missouri 2.0% 40 Montana 0.2% 4 Nebraska 0.6% 12 25

26 Nevada 0.7% 13 New Hampshire 0.8% 15 New Jersey 4.6% 91 New Mexico 0.3% 6 New York 10.6% 212 North Carolina 2.6% 52 North Dakota 0.2% 3 Ohio 3.5% 70 Oklahoma 0.9% 17 Oregon 0.8% 16 Pennsylvania 5.1% 102 Rhode Island 0.3% 6 South Carolina 1.0% 19 South Dakota 0.3% 5 Tennessee 1.5% 30 Texas 5.5% 110 Utah 0.7% 13 Vermont 0.2% 3 Virginia 3.0% 59 Washington 1.9% 38 West Virginia 0.3% 5 Wisconsin 1.7% 33 Wyoming 0.2% 3 Total Responses 100%