Ameriprise Study: Investors Across Five Decades Feel Confident About Their Financial Journey, Despite Setbacks and Fears
March 14 2018 - 6:00AM
Business Wire
Top three financial fears include health
challenges, job loss and market volatility
American investors across five age groups are optimistic about
their finances, even though they’ve faced challenges along the road
to success. According to the Ages, Stages & Money study
released today by Ameriprise Financial (NYSE: AMP), the vast
majority (95%) of investors with at least $100,000 in investable
assets report feeling confident about their financial future. While
confidence is high, most (8 in 10) say they’ve experienced
significant setbacks that have negatively impacted their financial
journey. And respondents are concerned about future challenges that
have the potential to hinder their success down the road.
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Investors across five different decades
share their feelings about money including their biggest
milestones, potential pitfalls and secrets to success. (Graphic:
Ameriprise Financial)
The study, which surveyed more than 3,000 Americans ages 30 to
79, reveals the top financial setback for individuals in their
30’s-40’s is a job loss or career issue, while market loss is the
leading derailer cited by older respondents. Though most
respondents (62 percent) have fully recovered from these events,
they’re still afraid of potential bumps down the road. For example,
younger respondents (in their 30’s-40’s) say their biggest
financial fear is job loss, while those who are older most fear
health challenges.
“Investors at various ages and stages of life who are taking
action to manage their money feel financially confident despite the
obstacles they’ve faced,” says Marcy Keckler, vice president of
Financial Advice Strategy at Ameriprise Financial. “While everyone
has unique goals, needs and challenges that change throughout their
lifetime, an important factor remains the same - planning for both
today and tomorrow reinforces their sense of security and their
long-term financial success.”
A Positive Look ForwardIt is clear investors aren’t
letting fear overshadow how they feel about their finances. Only 7
percent say they feel “stressed,” which isn’t surprising given most
respondents (78 percent) report having more than enough money to
cover essential expenses. Also, the majority (78 percent) say
they’re doing better financially than others their age. When asked
what financial success means to them, “having a sense of security”
is mentioned most often followed by “being able to provide for my
family.”
Steps toward SuccessEven though all respondents have
achieved the milestone of at least $100,000 in investable household
assets, a third (34 percent) have a household income below
$100,000, underscoring the proactive approach they’ve taken to
saving and investing their money. Living within their means is the
leading factor respondents credit for their financial situation.
Additionally, most people (75 percent) say they’re diversifying
investments and 61 percent say they’re paying down debt. The
majority (66 percent) also take advantage of retirement accounts
such as 401(k)s and started participating early— 55 percent started
in their 20’s.
Major Milestones and Financial GoalsThe Ages, Stages
& Money study reveals that age has a lot to do with the
personal milestones investors say had the biggest financial impact
on them over the last five years. For those in their 30’s buying a
home tops the list, while starting/changing jobs is number one for
those in their 40’s. Supporting their children’s accomplishments is
the top milestone for those in their 50’s; respondents in their
60’s and 70’s cite retirement. Across every age group, respondents
align on their number one financial goal for the near future:
achieve a point where they no longer have to worry about money.
Financial Life StagesInterestingly, age seems to be less
of a factor when people identify which financial life stage best
describes their situation. Rather, the Ameriprise study reveals
investors view their current financial stage through the lens of
the financial priorities they are currently focused on managing.
Only 17 percent of respondents say they are in the early stage, 48
percent identify with the middle phase and 35 percent say they are
in the later period:
- Asset Accumulator - In the early
financial stage, investors are looking to balance accumulating
financial assets with managing debt. Nearly half of respondents in
their 30’s (49 percent) and a quarter in their 40’s categorize
themselves as Accumulators. Roughly 10 percent of respondents older
than 50 identify with this life stage.
- Asset Maximizer - In the middle stage,
optimizing savings and investments is a priority. Maximizers have
accumulated a reasonable amount of assets and are focusing on
growing assets in retirement accounts and achieving other long-term
goals. A substantial mix of investors across all age groups say
they’re in this stage: 30’s (51 percent), 40’s (73 percent), and
50’s (75 percent) identify themselves as an Maximizer. And 31
percent in their 60’s identify with this stage.
- Asset Sustainer - In the later
financial stage, investors have achieved retirement and their
priorities include determining draw-down strategies and adjusting
investments to make their money last. The majority of people in
their 70’s (90 percent) and 60’s (67 percent) identify with this
stage, while 17 percent of people in their 50’s say they’re in this
stage.
Potential PitfallsRegardless of age, certain decisions
have the potential to hinder investors’ financial futures. Nearly a
quarter (23 percent) of respondents who have a 401(k) or other
retirement account admit to borrowing or taking an early withdrawal
from it. This move can have a lasting impact on investors’
retirement plans and subject them to tax penalties. Fortunately,
the vast majority who took a loan (93 percent) say they’ve paid it
back. While health issues top the list of the biggest financial
fears for most respondents, few are preparing for this challenge.
Only 28 percent have long term-disability insurance and a quarter
have long-term care insurance.
“Even investors who have a good handle on managing their money
have opportunities to strengthen their financial future. An advisor
can be an important resource to help you navigate different life
stages, avoid mistakes and address hiccups along your financial
journey,” says Keckler.
For more information about the study, please visit our research
page at Ameriprise.com/ages
About the surveyThe Ages, Stages & Money study was
created by Ameriprise Financial, Inc. and conducted online by
Artemis Strategy Group December 8-21, 2017 among 3,019 U.S. adults
between the ages of 30-79 with at least $100,000 in investable
assets. For further information and details about the study,
including verification of data that may not be published as part of
this report, please contact Ameriprise Financial or go to
Ameriprise.com/ages.
About Artemis Strategy GroupArtemis Strategy Group
(www.Artemissg.com) is a communications strategy research firm
specializing in brand positioning, thought leadership and policy
issues.
About Ameriprise FinancialAt Ameriprise Financial, we
have been helping people feel confident about their financial
future for more than 120 years. With extensive asset management,
advisory and insurance capabilities and a nationwide network of
approximately 10,000 financial advisors, we have the strength and
expertise to serve the full range of individual and institutional
investors' financial needs. For more information, or to find an
Ameriprise financial advisor, visit ameriprise.com.
Ameriprise Financial Services, Inc. Member FINRA and SIPC.© 2018
Ameriprise Financial, Inc. All rights reserved.
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Ameriprise Financial, Inc.Cassandra Osei, Media Relations,
212-437-8682cassandra.osei@ampf.com
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