Retirement Savings Worry Looms Large
June 30 2015 - 04:05PM
Business Wire
More than a third of all investors say “living
for today” impedes saving for the future
E*TRADE Financial Corporation (NASDAQ:ETFC) today announced
results from the most recent wave of StreetWise, E*TRADE’s
quarterly tracking study of experienced investors. Results show
that investors worry more frequently about saving for retirement
than they do about their personal relationship issues, potential
job loss, or physical injury. Yet, at the same time, they admit
that short-term expenses hinder their long-term savings efforts,
not the least of which includes emotional spending.
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According to the study, investors cite wanting to “live for
today” as a major barrier to saving for retirement — behind only
health care, and statistically tied for second with housing costs
and day-to-day living expenses like food or utilities.
“Investors have the all-too-human tendency to prioritize today’s
expenses over future security," says Lena Haas, SVP, Retirement,
Investing, and Savings at E*TRADE Financial. "The key to combatting
this emotional decision-making is in how we contribute to our
long-term plan. We must remove emotion from the equation — and we
can do that through automation.”
Ms. Haas offered the following tips for creating a more
automated investing approach to saving for retirement:
- Automate your 401(k) and get the
match. Setting up contributions to automatically deduct
from each paycheck will help instill discipline and erase emotional
financial decision-making. Additionally, many employers offer
401(k) plans with a contribution match. Learn the facts about your
employer’s plan and determine if you can take advantage of a
matching feature, as not doing so is akin to leaving money on the
table.
- Set up an AIP and employ dollar cost
averaging. For those without a 401(k) option, or who also have
a Roth or Traditional IRA, Automatic Investing Programs (AIPs) make
investing routine. Dollar cost averaging allows investors to put
even small sums of money to work by buying a fixed amount of a
given security every week, month, quarter, or however often they
decide to invest.
- Put cash to work. Emotional
decision-making can also cause investors to keep too much cash in
their investing accounts. Asset allocation tools, like E*TRADE’s
Online Portfolio Advisor, can help investors with planning for
retirement. For investors with dividend-paying securities, consider
Dividend Reinvestment Programs (DRIPs), which offer a way to
automatically reinvest any cash earned from dividends.
E*TRADE is a partner in helping investors balance today’s needs
with tomorrow’s goals through pioneering digital tools and
personalized, smart guidance, both online and from nearly 300
seasoned financial consultants on the phone or in-person at
branches throughout the U.S. To learn more about how E*TRADE helps
investors make retirement easier, visit etrade.com/retirement.
For useful insight from E*TRADE and third-party investment
professionals, follow the company on Twitter, @ETRADE.
About E*TRADE Financial
E*TRADE Financial and its subsidiaries provide financial
services including online brokerage and banking products and
services to retail customers. Specific business segments include
Trading and Investing and Balance Sheet Management. Securities
products and services, including stocks, bonds, mutual funds, ETFs,
education, and online tools are offered by E*TRADE Securities LLC
(Member FINRA/SIPC). Managed Account Solutions are offered through
E*TRADE Capital Management, LLC, an investment adviser registered
with the Securities and Exchange Commission. Bank products and
services are offered by E*TRADE Bank, a Federal savings bank,
Member FDIC, or its subsidiaries and affiliates. More information
is available at www.etrade.com. Dollar cost averaging does not
assure a profit and does not protect against a loss in declining
markets. ETFC-G
About ResearchNow
ResearchNow, a leading digital data collection provider, powers
market research insights. They enable companies to listen to and
interact with the world’s consumers and business professionals
through online panels, as well as mobile, digital, and social media
technologies. Their team operates in over 20 offices globally and
is recognized as the market research industry’s leader in client
satisfaction. They foster a socially responsible culture by
empowering their employees to give back. To find out more or begin
a conversation, visit www.researchnow.com.
About the Survey
This wave of the survey was conducted from March 31 to April 10
of 2015 among an online U.S. sample of 1,002 self-directed active
investors who manage at least $10,000 in an online brokerage
account. The survey has a margin of error of ±3.1 percent at the 95
percent confidence level. It was fielded and administered by
ResearchNow. The panel is 65 percent male and 35 percent female
with an even distribution across online brokerages, geographic
regions, and age bands.
Referenced Data
How often, if at all, do you worry
about each of the following? (%=Always/Frequently)
Not having enough saved for retirement 30% Loss of a loved
one 30% Not understanding how to invest smartly 22% Personal
relationship issues 20% Loss of a job 18% Physical injury
17%
When it comes to saving
what you want for retirement, how much of a barrier is each of the
following?
(%=Very/Somewhat significant)
Healthcare costs for your family 45% Rent or mortgage 38%
Wanting to live for today 37% Day-to-day living expenses like food
or utilities 35% Education costs for your children 32% Childcare
20% Paying down student loans 20%
Important Notices
E*TRADE Financial, E*TRADE and the E*TRADE logo are trademarks
or registered trademarks of E*TRADE Financial Corporation.
© 2015 E*TRADE Financial Corporation. All rights reserved.
E*TRADE Financial Corporation and ResearchNow are separate
companies that are not affiliated. E*TRADE Financial Corporation
engages ResearchNow to program, field and tabulate the study.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150630006339/en/
E*TRADE Media
RelationsThayer Fox,
646-521-4418thayer.fox@etrade.comorE*TRADE Investor RelationsBrett Goodman,
646-521-4406brett.goodman@etrade.com
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