E*TRADE Study Reveals Investors Satisfied with Portfolio Decisions amid 2018 Volatility
December 13 2018 - 7:05AM
Business Wire
As the New Year approaches, investors focus on
the long-term despite near-term market noise
E*TRADE Financial Corporation (NASDAQ:ETFC) today announced
results from the most recent wave of StreetWise, the E*TRADE
quarterly tracking study of experienced investors, in which
respondents reflected on 2018 and their resolutions for the New
Year.
- Wide majority are satisfied with
their investing decisions. Despite a year of heightened
volatility, 87% of investors surveyed at the beginning of the
fourth quarter said they were satisfied with how they managed their
investments this year, statistically tied with satisfaction levels
at the same period in 2017.
- They are keeping their focus on the
long-term. Investors chose increasing retirement plan
contributions as their top resolution for 2019, in line with last
year. Gen X investors remain particularly focused on the long-term,
with one out of two (50%) choosing increased plan contributions as
their top resolution and less than one out of three (31%) choosing
reallocating their portfolio to reflect market conditions.
- Millennials choose knowledge.
The top resolution among Millennials was to learn more about
investing, trading, and the markets (51%).
“This year marked a turning point in the financial
markets—punctuated by volatility, trade wars, rising interest
rates, and a shifting political dynamic,” said Mike Loewengart, VP
of Investment Strategy at E*TRADE Financial. “The data suggest that
in the face of market headwinds and uncertainty, investors are
demonstrating some pretty sophisticated thinking when it comes to
their portfolio decisions, looking past the near-term noise and
focusing on their goals. They seem to take to heart that the single
most important aspect of investing you can control is how much you
put into your nest egg.”
Mr. Loewengart offered additional insights for investors to
consider as they kick off the New Year:
- Create or refresh a retirement
plan: It’s important for investors to revisit their retirement
plan annually. By reviewing goals and objectives, investors can
understand how much they may need in retirement, where they
currently stand, and make any adjustments to stay on track.
- Make a 2018 IRA contribution:
Investors who maximize allowable annual contributions for their
retirement account can put the potential power of tax-deferred
compounding on their side.
- Review gains, losses, and
expenses: Investors can evaluate their annual transactions
before year-end to uncover opportunities to help reduce their tax
bill. A tax or financial advisor can also offer insight into
potential tax implications of portfolio holdings, as well as what
to consider with any future investments.
E*TRADE aims to enhance the financial independence of traders
and investors through a powerful digital offering and professional
guidance. To learn more about E*TRADE’s trading and investing
platforms and tools, visit etrade.com.
For useful trading and investing insights from E*TRADE, follow
the company on Twitter, @ETRADE.
About the Survey
This wave of the survey was conducted from October 1 to October
9 of 2018 among an online US sample of 956 self-directed active
investors who manage at least $10,000 in an online brokerage
account. The survey has a margin of error of ±3.20 percent at the
95 percent confidence level. It was fielded and administered by
Research Now. The panel is broken into thirds of active (trade more
than once a week), swing (trade less than once a week but more than
once a month), and passive (trade less than once a month). The
panel is 60% male and 40% female, with an even distribution across
online brokerages, geographic regions, and age bands.
Referenced Data
In 2019, my financial resolution is to… (Top 2)
Y/Y AGE Total
Total Q4’18
Q4’17 25–34 35–54 55+
...increase the amount I contribute tomy
retirement plan
36% 40% 43% 50% 18%
...change my asset allocation to better
reflectmarket conditions
35% 38% 18% 31% 54%
...learn more about investing, trading,and
the markets
35% 35% 51% 33% 23%
...use online tools more often to make
sure I amproperly diversified and meeting my goals
34% 34% 37% 33% 31%
...seek the help of investing
professionalswhen I need it
33% 28% 42% 29% 26% ...not make any changes to how I am investing
23% 24% 8% 21% 41% Other 4% 1% 1% 3% 7%
In
looking back on 2018, would you say you are…with
how you managed your investments this year?
AGE
Q4 ‘18
Total Q4 ’18 Total Q4 ’17 25–34
35–54 55+ Satisfied (Top 3 Box)
87% 91% 84% 86% 90%
Neutral 9% -- 10% 11% 7%
Dissatisfied (Bottom 3 Box) 4%
9% 6% 3%
3%
“Millennial” defined as age 25–34 // “Gen X”
defined as age 35–54 //“Baby Boomer” defined as age
55+
About E*TRADE Financial and Important Notices
E*TRADE Financial and its subsidiaries provide financial
services including brokerage and banking products and services to
retail customers. Securities products and services are offered by
E*TRADE Securities LLC (Member FINRA/SIPC). Commodity futures and
options on futures products and services are offered by E*TRADE
Futures LLC (Member NFA). Managed Account Solutions are offered
through E*TRADE Capital Management, LLC, a Registered Investment
Adviser. Bank products and services are offered by E*TRADE
Bank, and RIA custody solutions are offered by E*TRADE Savings
Bank, both of which are national federal savings banks (Members
FDIC). More information is available at www.etrade.com.
E*TRADE Financial Corporation and its affiliates do not
provide tax advice, and you always should consult your own tax
advisor regarding your personal circumstances before taking any
action that may have tax consequences.
The information provided herein is for general informational
purposes only and should not be considered investment advice. Past
performance does not guarantee future results.
E*TRADE Financial, E*TRADE, and the E*TRADE logo are trademarks
or registered trademarks of E*TRADE Financial Corporation.
ETFC-G
© 2018 E*TRADE Financial Corporation. All rights reserved.
E*TRADE Financial Corporation and Research Now are separate
companies that are not affiliated. E*TRADE Financial Corporation
engages Research Now to program, field, and tabulate the study.
Research Now Group, Inc. provides digital research data and has
locations in the Americas, Europe, the Middle East and
Asia-Pacific. For more information, please go to
www.researchnow.com.
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