Nearly all Americans with $100,000 in investable assets are feeling good about their financial future, according to Ameriprise Financial. In its Ages, Stages & Money study, Ameriprise surveyed 3,000 30- to 79-year-old investors. Around 95 percent report being confident about money.
In fact, to say they’re a self-assured bunch is almost putting it mildly. Their confidence is likely somewhat bolstered by having more than enough money to cover essentials (78 percent reported as much) and doing better financially than their peers (again, 78 percent felt this way).
But even in the face of financial setbacks, which eight in 10 report experiencing, only seven percent of respondents indicate feeling money-related stress.
“Investors at various ages and stages of life who are taking action to manage their money feel financially confident despite the obstacles they’ve faced,” Marcy Keckler, vice president of Financial Advice Strategy at Ameriprise Financial, said in a statement. “While everyone has unique goals, needs and challenges that change throughout their lifetime, an important factor remains the same—planning for both today and tomorrow reinforces their sense of security and their long-term financial success.”
Examining the financial life stage to which respondents best identified, Ameriprise was surprised to find that results had less to do with age and more to do with financial priorities. According to the survey, “only 17 percent of respondents say they are in the early stage, 48 percent identify with the middle phase and 35 percent say they are in the later period.”
Early-stage retirement savers, called Asset Accumulators, are focused on both building up assets and paying down debt. Almost 50 percent of 30-somethings identified with this category, while 25 percent of 40-somethings and 10 percent of 50-somethings responded this way.
Middle-stagers, referred to as Asset Maximizers, are zeroing in on optimization. They’ve accumulated some wealth and are looking to grow assets and achieve long-term financial goals. “A substantial mix of investors across all age groups say they’re in this stage: 30’s (51 percent), 40’s (73 percent) and 50’s (75 percent) identify themselves as a Maximizer. And 31 percent in their 60’s identify with this stage.”
Late-stage investors, termed Asset Sustainers, want to make money last. Those who identify with this cohort are retired and considering the best ways to drawdown savings or modify investments so that they don’t outlive their assets. Ninety percent of Sustainers are in their 70’s, 67 percent are in their 60’s and 17 percent are in their 50’s.
“Even investors who have a good handle on managing their money have opportunities to strengthen their financial future,” Keckler adds.
For instance, most respondents are somewhat fearful health issues could have a negative impact on finances at some point. Yet only 28 percent say they have long-term disability insurance. Just 25 percent have long-term care insurance.
Fortunately, these investors appear resilient. Of those who reported borrowing from a retirement savings account, 93 percent paid it back. Among those who faced a job loss or significant market loss, 62 percent say they’ve fully recovered.
“When asked what financial success means to them, ‘having a sense of security’ is mentioned most often followed by ‘being able to provide for my family,’” according to Ameriprise.
Surveyed investors seem well on their way to ticking both of those items off their to-do list, as well as accomplishing the top financial goal of respondents in every age group: “to achieve a point where they no longer have to worry about money.”