How Seattle residents define and manage their wealth. October 2017

Transcription

1 How Seattle residents define and manage their wealth October 2017

2 Methodology What An online study among a sample of the general public was conducted by Koski Research. When The study was fielded July 24 August 10, Who 761 Seattle area residents aged completed the study. The geographical area of the sample is defined by the Seattle-Tacoma-Bellevue Metropolitan Statistical Area. Quotas were set so that the sample is as demographically representative as possible. The margin of error for the total survey sample is three percentage points. The data have not been weighted. 2

3 Seattle residents define wealth as having a lot of money, being able to afford whatever they want and enjoying life Define Wealth Unaided Having money/lots of money Having material items/being able to afford anything Being comfortable/enjoying life 35% 32% 29% Peace of mind/living stress free Relationships/family/friends/love Freedom/independence Security/stability Happiness/being happy Being healthy Other 19% 13% 8% 7% 6% 5% 5% Q26 Please complete the following sentence: To me, wealth means (Base: = 761) 3

4 Seattle residents lean toward definitions of wealth that money can t buy Self Description of Wealth or Having more money than most people I know 9% 91% Not having to stress over money Having an important job title 14% 86% Having a healthy work/life balance Being able to buy whatever I want now 15% 85% Not having to worry about the future Leaving an inheritance for my family 20% 80% Spending time with my family now Having a lot of money 34% 66% Having good physical health Making lots of money 36% 64% Being with friends Having money 44% 56% Having gratitude Working on my career 46% 54% Building my community Being able to donate my money to a cause I care about 56% 44% Being able to donate my time to a cause I care about Q27 For each pair of statements, please slide the indicator toward the statement that better describes you. To me, having wealth means (Base: = 761) 4

5 Seattle residents say it takes an average of $2.4M to be considered wealthy in their area Net Worth Needed to be Financially Comfortable $575,000 In the Seattle area Average Net Worth Needed to be Wealthy $2.4M In the Seattle area Average Q3 At what level of personal net worth would you say a person in your area could be considered financially comfortable? Q4 At what level of personal net worth would you say a person in your area could be considered wealthy (Base: = 761) 5

6 About the Modern Wealth Index The Modern Wealth Index tracks how well Americans across the wealth spectrum are planning, managing and engaging with their wealth. Developed in partnership with Koski Research and the Schwab Center for Financial Research, the Modern Wealth Index is based on Schwab s Investing Principles and composed of 60 financial behaviors and attitudes each assigned a varying amount of points depending on their importance. The Index broadly assesses Americans across four factors: 1) Goal setting and financial planning 2) Saving and investing 3) Staying on track 4) Confidence in reaching financial goals Based on the total number of points received, respondents were indexed on a scale for each of the four factors and an overall score. 6

7 Seattle residents score highest on having confidence in reaching their financial goals Modern Wealth Index Score Average Modern Wealth Index score 48 Goal setting and financial planning 40 Saving and investing 53 Staying on track 24 Confidence in reaching financial goals 59 The Index broadly assesses Americans across four factors: 1) goal setting and financial planning, 2) saving and investing, 3) staying on track, and 4) confidence in reaching financial goals. Based on the total number of points received, respondents were indexed on a scale for each of the four factors and an overall score. 7

8 Nearly two-thirds of Seattle residents have a financial plan; less than a quarter have plans in writing Have Financial Plan Yes (NET) 63% 66% 59% 60% Yes, and it is in writing 22% 21% 22% 22% Yes, but not in written form 41% 45% 37% 38% No, do not have a financial plan 37% 34% 41% 40% Millennials Gen X Boomers Q10 Do you currently have a financial plan? N=761 N=285 N=221 N=237 8

9 Seattle residents are most likely to make all loan payments on-time each month and have a household budget Self Description I make all my loan payments (e.g. mortgage, student loans) on-time each month/i have no loans 56% I have a household budget I have no credit card debt/i pay my credit card in full each month 37% 41% I have a 401(k) or similar plan available to me at work I have an emergency or rainy day fund that would cover at least 3 months of living expenses I have a monthly savings goal I am keeping my family in mind for the future and have an up-to-date will I have investments outside my 401(k) I have calculated my net worth in the past year I contribute the maximum to my 401(k) or similar plan 30% 29% 28% 24% 22% 21% 15% I receive equity or stock options as part of my compensation at work 5% Q19 When it comes to saving money, which of the following statements apply to you? Q20 Thinking about your finances, which of the following statements apply to you? (Base: = 761) 9

10 Three in five Seattle residents are confident in their ability to reach their main financial goals Confidence in Ability to Achieve Main Financial Goals Very/somewhat confident (NET) Very confident 62% 82% 56% 58% 70% 54% 18% 40% 12% 20% 19% 15% Somewhat confident 44% 44% 50% 39% 39% 42% Not very confident 26% 29% 22% 30% 29% Not at all confident 12% (N=761) 14% 4% Have Written Financial Plan (N=167) 15% Doesn t have Written Financial Plan (N=594) 8% Millennials (N=285) 12% Gen X (N=221) 17% Boomers (N=237) Q7 How confident do you feel that you will be able to reach your main financial goals? 10

11 Disclosures Through its operating subsidiaries, The Corporation (NYSE: SCHW) provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. Its brokerdealer subsidiary, & Co., Inc. (member SIPC, and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; compliance and trade monitoring solutions; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its banking subsidiary, Bank (member FDIC and an Equal Housing Lender), provides banking and lending services and products. Koski Research is not affiliated with the Corporation or its affiliates. More information is available at and Investment Products: Not FDIC Insured No Bank Guarantee May Lose Value. (1017-7G35) 11

12 Thank you