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E * TRADE study suggests young investors want professional advice as much as digital content | Business


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ARLINGTON, Va .– (BUSINESS WIRE) – Sep 28, 2021–

E * TRADE Financial Holdings, LLC today announced the results of the latest wave of StreetWise, the E * TRADE quarterly tracking study of experienced investors. As more and more young investors enter the market, the results reveal that the interest in professional investment advice matches the interest in learning digital tools:

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210928006079/en/

(Graphic: Business Wire)

  • Young investors are looking for both professional advice and DIY digital tools. Investors under 34 report that the best ways they have found to learn about investing are with a financial advisor or investment professional (56%), followed closely by the online educational content and tools (55%). And interest in both has grown: more than half (57%) said that in the past three months, they have become more likely to use sophisticated software as a dedicated trading platform. and almost half (49%) said they are more likely to seek professionals. Investment advice.
  • And taking a course in the market interests them more than any other finance subject. For the first time in the history of the issue, young investors are most interested in taking a course in the markets (43%) rather than a course in retirement savings (38%). This change of opinion comes against a backdrop of increased engagement of young retail investors.
  • But the financial jargon continues to confuse. Almost three in four (74%) of Gen Z and Millennial investors note that financial jargon hinders their ability to invest on their own, increasing 8 percentage points from last year.
  • And the barriers to saving are looming on the horizon. Almost two in three young investors (61%) said that education fees or paying off student loans are the biggest barriers to retirement, linked to health care costs (61%).

“Young investors are true digital natives and have high expectations for any web or mobile experience, but it’s clear they’re also open to a little more traditional support when it comes to their finances,” Mike said. Loewengart, Managing Director of Investment Strategy. at E * TRADE Financial. “So while it’s encouraging to see the next generation take more interest in the market, it’s critical that they understand the basics before they go all out. After building a solid financial and knowledge base, investing a little can go a long way for this generation, especially with time on their side.

Mr. Loewengart offered additional advice to young investors who are in the early stages of their financial journey:

  • Take stock of your risk tolerance and goals. It’s easy to get carried away by the latest stock market fad, so controlling your emotions and staying aligned with long-term goals is essential. Risk tolerance will change over time, so it is important to review it periodically, especially after major life events.
  • Don’t try to time the market. The pursuit of performance is a risky business: you always look in the rearview mirror. While historical data can be useful, it bears repeating that past performance is no guarantee of future results. So while we have mostly experienced a bull market over the past year, consider that the market cannot go up indefinitely. And ultimately, market volatility is part of a healthy market, so feeling comfortable with the ups and downs is crucial.
  • Think about automatic investing. One way to develop good financial habits is to set up automatic deposits in a retirement or brokerage account. While you cannot control the market or your returns on investment, you can control how much you add to your account. By enabling automatic investing, you can also reduce your portfolio risk through averaging dollar costs, potentially taking advantage of inevitable market fluctuations. 1

About the survey

This wave of the survey was conducted from July 1 to July 9, 2021 with an online US sample of 898 active self-directed 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 aligned and administered by Dynata. The panel is divided into active thirds (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 made up of 60% men and 40% women, with a uniform distribution among online brokerage firms, geographic regions and age groups. The

About E * TRADE Financial Holdings, LLC and Important Notices

E * TRADE Financial Holdings, LLC and its subsidiaries provide financial services, including brokerage and banking products and services to retail clients. Securities products and services are offered by E * TRADE Securities LLC (SIPC member). Commodity futures contracts and options on futures products and services are offered by E * TRADE Futures LLC (NFA member). Managed account solutions are offered by E * TRADE Capital Management, LLC, a registered investment advisor. Banking 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 (FDIC members). More information is available at www.etrade.com.

  1. Automatic investing and average dollar costs do not guarantee profit or protect against loss in falling markets. Investors should consider their financial ability to continue shopping during times of low price levels.

The information provided in this document is for general information purposes only and should not be construed as investment advice. Past performance is no guarantee of future results.

E * TRADE Financial, E * TRADE and the E * TRADE logo are registered trademarks of E * TRADE Financial Holdings, LLC. ETFC-G

© 2021 E * TRADE Financial Holdings, LLC, a Morgan Stanley company. All rights reserved.

E * TRADE Financial engages Dynata to schedule, set up and compile the study. Dynata provides digital research data and has locations in the Americas, Europe, the Middle East and Asia-Pacific. For more information, visit www.dynata.com.

Referenced data:

Which of the following have you personally found to be the best way to learn more about investing? (Select the first 3)

AGE

Q3’21

From a financial advisor or other investment professional

56%

Online through content or educational tools

55%

Alone by trial and error

40%

From a trusted friend, family member or colleague

40%

Professional follow-up

30%

Online via social media

27%

Online via news or blogs

26%

Listen to podcasts

15%

Through traditional printed materials such as books or magazines

9%

From a formal classroom in person to school or otherwise

4%

Other

In the last three months of the pandemic, when it comes to managing your accounts, have you found yourself … (Top 2)

AGE

Q3’21

More likely to rely on a mobile app to trade

67%

More likely to use sophisticated software such as a dedicated trading platform

57%

More likely to seek financial advice from an investment professional

49%

More likely to use an automated investment solution like a robot advisor

15%

Nothing

6%

Other

If you could take a finance course, which one would you take?

AGE

Q3’18

Q3’19

Q3’20

Q3’21

Understanding the markets

25%

27%

28%

43%

Saving for retirement

37%

42%

44%

33%

Active trade 101

27%

23%

18%

14%

Introduction to asset classes and derivatives

9%

7%

9%

8%

Other

2%

1%

1%

2%

Please rate your level of agreement with the following statement: Financial lingo hinders my ability to understand how to invest on my own.

AGE

Q3’20

Q3’21

Top 2

66%

74%

Totally agree

28%

31%

Somewhat agree

38%

43%

Somewhat disagree

24%

20%

not agree at all

ten%

6%

Bottom 2

34%

26%

When it comes to your personal ability to save for retirement, how much of a barrier are each of the following?

AGE

Q3’21

Health care costs

61%

Education fees or student loan repayment

61%

Living expenses like food or utilities

54%

Want to live for today

52%

Rent or mortgage

51%

Have a parent living with you

50%

Retail shopping and / or dining out

49%

Have an older child living with you

48%

Childcare

48%

Gen Z and Millennials (young investors) are defined as 18-34 years old

ETFC

See the source version on businesswire.com: https://www.businesswire.com/news/home/20210928006079/en/

CONTACT: E * TRADE Media Relations

646-521-4418

[email protected]

KEYWORD: UNITED STATES NORTH AMERICA VIRGINIA

INDUSTRY KEYWORD: PROFESSIONAL SERVICES TECHNOLOGY MOBILE / WIRELESS INTERNET FINANCING SOFTWARE

SOURCE: E * TRADE Financial Holdings, LLC

Copyright Business Wire 2021.

PUB: 09/28/2021 4:05 PM / DISC: 09/28/2021 4:06 PM

http://www.businesswire.com/news/home/20210928006079/en

Copyright Business Wire 2021.

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