News

New Hearts & Wallets Study Reveals How Asset Managers Could Significantly Improve Target-Date Offerings

Investor-Oriented Product Innovations Provide Asset Managers Potential to Reclaim Some Control from Distributors

(Hingham, MA) – Asset managers could improve their competitive market position by developing innovative investor-oriented products to address consumer dissatisfaction with current Target-Date offerings – specifically the retirement transition – according to a new study by Hearts & Wallets, LLC, the preeminent financial research resource for understanding consumer savings and investing needs and behaviors.

The study points to how investment manufacturers can potentially reclaim some power lost to distributors over the last decade because of consumer disconnects and product development strategic focus shifts. In the last 15 years, stores (outlets such as broker-dealers or retirement plans where consumers access investments) have gained more influence over investor wallets than products (investment manufacturer offerings). In prior decades, differentiated products through both self- and full-service channels offered true consumer appeal. The current environment suggests products, and manufacturers, could reclaim some of that appeal in the next generation of all-in-one solutions. Read More→

Gen Y Looking for Financial Independence, Not Traditional Retirement

ThinkAdvisor

Affluent Gen Y investors are eschewing defined contribution plans in favor of online brokerages, according to a survey released Tuesday by Hearts & Wallets, a consumer financial research company. The reason, the survey found, is that they value financial independence more than a traditional retirement that puts an expiration date on their career.

Almost three-quarters of Gen Y respondents with at least $100,000 in household assets said they have an online brokerage account, compared with two-thirds who have a defined contribution plan. Hearts & Wallets surveyed more than 5,000 households for the report. Read more…

Affluent Gen Y Prefers Online Brokerage Accounts over DC Plans

Short-Term Goals, Financial Independence Trump Traditional Retirement and Tax-Deferred Savings

(Hingham, MA) – Gen Y[1]’s savings goals drive their preference for liquid investments, reflected in a higher use of online brokerage accounts over defined contribution (DC) plans, according to a new study by Hearts & Wallets, LLC, the preeminent financial research resource for understanding consumer savings and investing needs and behaviors. Gen Y’s investment preferences stem from a desire for financial independence over a traditional leisure retirement, making retirement savings accounts less appealing.

74 percent of Affluent Gen Yers have assets in an online brokerage account versus 67 percent who have assets in a defined contribution plan. Affluent Gen Yers – those with more than $100,000 in household assets – are alone among working age segments in being more likely to invest assets in an online brokerage account than a defined contribution plan. The penalty-free access to capital and far greater investment choices of online brokerage accounts attract Gen Yers, who remain long-term commitment phobic. Read More→