Market Overview

Investors Feel Financially Confident, but Worry About the Next Generation in Their Family, Ameriprise Study Reveals

Share:

Study finds parents are providing more financial support to their
adult children than they received from their own parents

The research also uncovers shifting attitudes on homeownership and
talking about money

Modern Money, a new study released today by Ameriprise Financial
(NYSE:AMP), reveals 78 percent of investors say achieving financial
success has been the same or easier for them than it was for their
parents at the same age, but over half (51 percent) think it will be
harder for the next generation in their family to feel comfortable
financially. The study, which surveyed more than 3,000 U.S. investors
ages 30 to 69 with at least $100,000 in investable assets, explores how
attitudes toward conventional financial goals such as homeownership,
supporting children, and retirement have shifted across generations. The
study also sheds light on how these changes impact investors'
relationship with money.

This press release features multimedia. View the full release here:
https://www.businesswire.com/news/home/20190410005432/en/

Modern Money infographic (Graphic: Business Wire)

Modern Money infographic (Graphic: Business Wire)

Parental Financial Support

Many of today's investors are providing financial support to their
children at a higher rate than they received from their own parents.
Nearly two-thirds (64 percent) of respondents say their parents helped
them pay for their college education. When it comes to helping their own
children pay for college, 87 percent of respondents say they have or
plan to assist with this milestone. Surprisingly, one out of three (33
percent) respondents say they have delayed their own retirement or would
do so to help their kids with this expense; however, only 10 percent of
respondents say their parents made this same sacrifice for them.

"Parents delaying their retirement to pay for their children's college
education could be a potential red flag," says Marcy Keckler, vice
president of Financial Advice Strategy at Ameriprise Financial. "As
individuals juggle competing financial goals, they should have a plan in
place to ensure they're not sacrificing their financial future in order
to fund other priorities. You only get one shot at saving for
retirement, so it's critical to keep it front-and-center."

More than half (54 percent) of respondents say their parents helped pay
for their first car, but an even greater percentage (80 percent) say
they either intend to or have already helped pay for their own
children's first vehicle. What's more, the study shows that financial
support from modern parents often continues in adulthood. Investors have
assisted or plan to assist their kids financially with wedding expenses
(78 percent) and first home purchase (40 percent). Comparatively, when
reflecting back on their experiences as young adults, 51 percent of
respondents say they received help from their parents for their nuptials
and only 19 percent received help from their parents for their first
home.

Modern Attitudes Toward Homeownership

Most investors (70 percent) say owning a home is as good of an
investment as it was a decade ago. In fact, the clear majority (92
percent) of respondents are homeowners. Despite many viewing
homeownership as a good investment, it is not the primary reason they
bought their home – the No. 1 driver is that it gives them "a sense of
pride in being a homeowner."

The remaining eight percent of respondents who identify as renters say
the top reason they don't own is that renting provides more flexibility.
These investors are applying the money they could have used to buy a
home toward other financial goals – 71 percent are using the money to
save for retirement and 55 percent say they are allocating it toward
traveling.

Mum about Money

Half (51 percent) of investors think discussions around money are still
as taboo today as they were a decade ago, but this sentiment is
gradually shifting. The Modern Money study reveals younger
generations are more open to discussing money matters with others. For
example, 26 percent of Millennials surveyed said they talk with their
friends about how much they spent on a major purchase, compared with 18
percent of Gen X and 12 percent of Boomers. Millennials are also more
likely to talk with their friends about their salary and how much money
they have invested, compared with Gen X and Boomers.

Among those who have conversations about money, they say they do so
because it helps them learn more about managing their finances and they
can help others by teaching them what they know.

"Talking about money pays off," says Keckler. "Our research finds that
investors who have more financial confidence are more likely to speak
with others about money. Consulting a financial professional may be a
good place to start, especially for those who find this topic difficult
to discuss."

For more information about the study, please visit our research page at Ameriprise.com/modernmoney

About the survey

The Modern Money study was created by Ameriprise Financial, Inc. and
conducted online by Artemis Strategy Group December 11-25, 2018 among
3,008 U.S. adults between the ages of 30-69 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/modernmoney.

About Artemis Strategy Group

Artemis Strategy Group (www.Artemissg.com)
is a communications strategy research firm specializing in brand
positioning, thought leadership and policy issues.

About Ameriprise Financial

At 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.

© 2019 Ameriprise Financial, Inc. All rights reserved.

View Comments and Join the Discussion!
 
Fastest Market News Application
You'll Hear It First On Pro
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com