Table of Contents
Overview
-
- What you need to know
- Definition
Executive Summary
-
- The issues
- Women are still behind
-
- Figure 1: Investable assets, by gender, November 2016
- Many still don’t have enough for retirement
-
- Figure 2: Investable assets, by generation, November 2016
- Most know they need to work harder to save
- The opportunities
- Young people are interested – but need to learn
-
- Figure 3: Investing behavior, by gender and age, November 2016
- Robo-advisers should target young investors
-
- Figure 4: Use of robo-adviser, by age and gender, November 2016
- Banks should focus on Millennials as investment customers
-
- Figure 5: Location of investment account(s), by generation, November 2016
- What it means
The Market – What You Need to Know
-
- Increase in mutual fund companies drives increase in investment firms
- Total net assets of investment companies shrinks since 2014
- Equity funds are most popular
- Personal savings is rising faster than disposable income
- The future of the new DOL Fiduciary Rule is murky
Market Size
-
- Number of investment firms still lower than peak
-
- Figure 6: Number of investment firms, 1997-2015
- Total net assets of investment companies tops $18 billion
-
- Figure 7: Total net assets of investment companies, year-end 1998-2015
Market Breakdown
-
- Equity funds are most popular
-
- Figure 8: Breakdown of US mutual fund assets, year-end 2015*
Market Factors
-
- Personal savings is rising faster than disposable income
-
- Figure 9: DPI (disposable personal income), personal savings, personal savings as a percentage of DPI
- Changing demographics will have an effect
-
- Figure 10: Population by generation, 2012-22
- What is the future of the new DOL Fiduciary Rule?
Key Players – What You Need to Know
-
- Features of leading robo-advisers
- Where are the women advisers?
- The challenge for human advisers
- Women still struggle with retirement savings
- Robo-advisers are sure to grow in popularity
- Hybrid advisers will likely be more popular
- Robo-advisers target segments
What’s In?
-
- Features of leading robo-advisers
-
- Figure 11: Comparison of five leading robo-advisers
- Robo-leaders each take a different approach
-
- Figure 12: Vanguard Personal Advisor Services mobile ad, 2016
- Figure 13: Schwab Intelligent Portfolios™ email, 2016
-
- Figure 14: Betterment mobile ad, 2016
- Figure 15: Personal Capital mobile ad, 2015
- How do investors choose?
- Advisers are more important than firms
What’s Struggling?
-
- Where are the women advisers?
- The challenge for human advisers
-
- Figure 16: Attitudes toward investing, by generation, November 2016
- Retirement is still a problem for women
-
- Figure 17: Attitudes toward investing, by gender, November 2016
What’s Next?
-
- The growth and future of robo-advisers
-
- Figure 18: Use robo-adviser, by gender and age, November 2016
- Hybrid advisers will likely be more popular
- Robo-advisers target segments
- True Link – A robo focused on Baby Boomers
- Wealthfront offers a 529 college savings plan
- Betterment offers a 401(k) plan
- Banks will enter the robo-fray
-
- Figure 19: Capital One Investing email ad and landing page, 2016
- Investor attitudes suggest hybrid advisers would be popular
Consumers – What You Need to Know
-
- Many preretirees still don’t have enough to retire
- Men are more active investors outside of retirement
- Opportunities for banks
- Young women need investment education
- Men are more active and engaged investors
- Most investors believe human advisers are better
- Different generations prefer different media channels
- Millennials would rather pay fees than commissions
Investable Assets
-
- Many preretirees still don’t have enough to retire
-
- Figure 20: Household investable assets, by generation, November 2016
- Blacks are at a serious disadvantage
-
- Figure 21: Household investable assets, by race, November 2016
Investment Account Ownership
-
- Men are more likely to be investing outside of retirement
-
- Figure 22: Investment account ownership, by gender, November 2016
- Hispanics more likely to close accounts
-
- Figure 23: Investment account ownership, by Hispanic origin, November 2016
Location of Investment Account
-
- Men are more likely to use several accounts
-
- Figure 24: Location of investment account, by gender, November 2016
- Millennials prefer banks
-
- Figure 25: Location of investment account, by generation, November 2016
- Banks and robo-advisers have advantage with Hispanics
-
- Figure 26: Location of investment account, by Hispanic origin, November 2016
- Investment firms hold the largest accounts
-
- Figure 27: Location of investment account, by household investable assets, November 2016
Reasons for Not Having an Account
-
- Most don’t have the money
-
- Figure 28: Reasons for not having an account, November 2016
- Young women need investment education
-
- Figure 29: Reasons for not having an account, by gender and age, November 2016
Investment Behaviors
-
- Men are more likely to make regular investment contributions
-
- Figure 30: Make regular contributions, by gender, November 2016
- Men are more engaged with investing
-
- Figure 31: Engagement with investing, by gender, November 2016
- Engagement increases with age
-
- Figure 32: Engagement with investing, by generation, November 2016
- Higher-income investors research on their own
-
- Figure 33: Investment behaviors, by household income, November 2016
Robo-adviser or Human Adviser?
-
- Most investors have more faith in human advisers
-
- Figure 34: Robo-advisers vs human advisers, November 2016
- Younger people see more advantages in robo-advisers
-
- Figure 35: Robo-advisers vs human advisers, by gender and age, November 2016
- Hispanics more interested than non-Hispanics
-
- Figure 36: Robo-advisers vs human advisers, by Hispanic origin, November 2016
Source of Information
-
- Men get information from more places
-
- Figure 37: Source of investment information, by gender, November 2016
- Millennials prefer websites, older investors prefer humans
-
- Figure 38: Source of investment information, by generation, November 2016
- Wealthy investors rely heavily on advisers
-
- Figure 39: Source of investment information, by investable assets, November 2016
Attitudes toward Investing
-
- Millennials would rather pay fees than commissions
-
- Figure 40: Attitudes toward investing, by generation, November 2016
- Hispanics may be a good target for hybrid advisers
-
- Figure 41: Attitudes toward investing, by Hispanic origin, November 2016
Cluster Analysis
-
-
- Figure 42: Investment account owner clusters, November 2016
- Cluster 1: Uncomfortable Investors
- Characteristics
- Opportunity
- Cluster 2: Disengaged Investors
- Characteristics
- Opportunity
- Cluster 3: Confident Investors
- Characteristics
- Opportunity
-
Appendix – CHAID Analysis
-
- Methodology
- Young fathers have confidence in robo-advisers
-
- Figure 43: Attitudes toward investing – CHAID – Tree output, November 2016
-
- Figure 44: Attitudes toward investing – CHAID – Table output, November 2016
Appendix – Data Sources and Abbreviations
-
- Data sources
- Sales data
- Consumer survey data
- Consumer qualitative research
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
Back to top