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 indicate that even during a year
of rising volatility, investors remain optimistic, with 89 percent
agreeing that they will reach their retirement goals.
That said, tracking data throughout 2014 suggest that investors are
struggling with being disciplined about retirement saving:
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Many deprioritize retirement. Two out of five (40 percent) investors
(and 58 percent of those under 34) agree that saving for retirement is
difficult because they would rather spend on themselves today. And
investors plan to use less than a third (28 percent) of their year-end
bonuses to save for retirement.
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They are pulling from their primary source of retirement saving.
Almost half (47 percent) of all investors under 34 have made early
withdrawals from their 401(k), and half of this population relies on
it as their sole retirement account.
“The end of the year is a natural time to review your retirement goals
and the progress you made in achieving them,” says Lena Haas, SVP,
Retirement, Investing and Saving at E*TRADE Financial. “Making
disciplined contributions is the key to success —and may be the most
significant factor in the health of your retirement account.
Fortunately, there are a number of actions investors can take to create
a systematic approach to saving for retirement.”
Ms. Haas offered the following New Year’s resolutions for investors
looking to boost their retirement saving in 2015:
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Automate the burden. Setting up automatic contributions removes
the guesswork from how much you will contribute each period.
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Look under the hood. Either on your own or with a financial
professional, dig into the particulars of your plan. Review the
critical components like asset allocation and fee structures, but also
some of the lesser-known features. For example, some plans offer the
ability to draw loans, which will give you options if you have a
short-term setback. Additionally, for those 50 or older, several
retirement plans offer increased contribution amounts, or 'catch-ups.’
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Harvest losers. Tax season is around the corner. Review your
portfolio and consider selling positions that have lost value in order
to offset capital gains from the year, and reinvest the proceeds in
better performing positions.
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Do not leave money on the table. A variety of plans offer cash
incentives. For instance, many employers offer 401(k) plans
with a contribution match. For those with IRAs, make sure to
contribute the annual maximum ($5,500 for those under 50, and $6,500
for those 50 or over) to take advantage of the potential pre-tax
dollar benefit.
E*TRADE empowers smarter investing by balancing today’s needs with
tomorrow’s goals through access to curated content and insights with
actionable tools — complemented by professional guidance — online and
from seasoned financial consultants. To learn more about E*TRADE’s
trading and investing platforms and tools, visit etrade.com.
For useful insight from E*TRADE and third-party investment
professionals, follow the company on Twitter, @ETRADE.
Systematic investing does not assure a profit or protect your portfolio
against a loss in declining markets.
About E*TRADE Financial
E*TRADE Financial and its subsidiaries provide financial services
including online brokerage and related banking products and services to
retail investors. Specific business segments include Trading and
Investing and Balance Sheet Management. Securities products and
services, including retirement accounts, 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.
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
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To find out more or begin a conversation, visit www.researchnow.com.
About the Survey
This wave of the survey was conducted from Sept. 29 to Oct. 6 of 2014
among an online U.S. sample of 925 self-directed active investors who
manage at least $10,000 in an online brokerage account. The survey has a
margin of error of ±3.6 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.
Important Notices
E*TRADE Financial, E*TRADE and the E*TRADE logo are trademarks or
registered trademarks of E*TRADE Financial Corporation.
© 2014 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.
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Copyright Business Wire 2014