Investor Sentiment june 2009 SmartMoney empowers our affluent baby boomer audience to make smart investing, saving and spending decisions. SmartMoney’s audience wants to make smart financial decisions to enjoy their lives, prepare for retirement and achieve their dreams. SmartMoney is their trusted source of information to assist them in making financial moves to reach their goals. SmartMoney’s role as a trusted financial authority is more
relevant today than ever before. SmartMoney is a trusted partner and resource for consumers who are looking for guidance as they make sense of the recent economic turmoil and the issues they face in their financial lives. The latest research shows that SmartMoney’s audience is optimistic and prepared for the financial market’s comeback.
Optimistic
73% of SmartMoney investors feel in control of their investments 72% of investors are confident that they will be able to meet their long-term financial goals 98% feel they will be “prepared” when the market and economy start to come back 66% believe the stock market will start to comeback within the next year
Opportunistic Despite the continuing economic volatility, SmartMoney investors still look long-term. 65% are buying stocks to take ad-
21%
vantage of lower market prices, while only 28% are nervous but staying put—a 20 point decrease from our last survey.
SmartMoney investors purchased stocks, mutual funds
and ETFs in the past 6 months. They did move some of their
21%
Increase in value Income from it
58%
Safest place for it
investments into liquid assets as seen in the increase in CDs and Money Market Funds. Moving forward, SmartMoney investors are looking to buy longer-term investments such as stocks, futures, ETFs and international investments.
Investment
Bought in past 12 months
Plan to buy next 12 months
Stocks
92%
65%
Mutual Funds
87%
Bonds
81%
CDs Real Estate
Bought in past 12 months
Plan to buy next 12 months
529 Plans
76%
67%
63%
Annuities
76%
38%
61%
ETFs
79%
75%
87%
50%
Options
72%
78%
46%
66%
Tangible Assets
81%
58%
401(k)
94%
58%
International Investments
83%
73%
Money Market Funds
93%
53%
Hedge Funds
64%
57%
Self-directed IRA
87%
61%
Futures
54%
80%
Contact: Joseph Dressler — National Advertising Director
Investment
212.373.9170
jdressler@smartmoney.com
During these uncertain times, saving for retirement and paying off debt remained top priorities for SmartMoney investors. If they were given $10,000 tax-free, they would use the money towards retirement, paying off debt and investing in the stock market.
Spending Wisely
Retirement
37%
Paying off debt (mortgage, college tuition, etc.)
29%
Speculative investing
26%
Home improvement/remodeling
24%
Travel
18%
Auto
9%
College Savings
6%
Where They Are Spending (Next Six Months)
The ongoing financial crisis has prompted consumer to re-evaluate their spending habits—63% of SmartMoney consumers have changed their spending habits. Aware of the market’s downturn, they recognize how the slowed economy can yield some of the most valuable purchases they’ll ever make. Our audience is spending their hard-earned money on products and services that help them enjoy their lives.
Travel
86%
Computers/Peripherals
59%
Home Furnishings
37%
Electronics
32%
Automobiles
17%
Resourceful SmartMoney investors are relying on more resources and consider research integral to their success. They value SmartMoney and their financial professionals’ advice now more than ever before:
SmartMoney investors look to various sources for investing/ personal finance information and consider the following to be the top sources:
84% feel the need to do more research before making investment decisions
Financial websites
97%
Personal finance/business magazines
92%
Newspapers
73%
TV/Radio
66%
Friends/Colleagues/relatives
49%
63% consider a paid advisor an important source of investing/personal finance information 30% conduct research on their own and then consult with their financial advisor
Investor Demographics
62% of investors use a discount brokerage while 36% use a full-service brokerage
HHI $100,000+
44%
Portfolio value $250,000+
63%
1 in 4 SmartMoney investors are more likely to discuss their financial plans with a financial advisor and 59% are more likely to seek out information from SmartMoney and other trusted resources in this volatile market
C-Level/Top Management
22%
Professional/Managerial
46%
Broker/Financial Advisor/ Planner
3%
Source: SmartMoney Investor Sentiment Survey, June 2009. SmartMoney investors are subscribers or regular readers of SmartMoney magazine and users of SmartMoney.com. 1200 respondents.
Contact: Joseph Dressler — National Advertising Director
212.373.9170
jdressler@smartmoney.com