Attitudes & Sentiments 2024 is an annual look at U.S. household attitudes and behaviors relating to investing, and how goals and concerns have evolved in the past year.

Overall, households are feeling more optimistic about their finances, fueled by strong market performance. However, concerns over the US political environment and data security are very real and jump to the top of the list.  Concern over inflation remains high and continues to grow.  Also, consumers are increasingly seeing value in paying for financial advice, and interest in banking and investing at the same firm is one the rise.  Emerging themes include intergenerational finance and artificial intelligence (AI).

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This Explore Qualitative™ report looks at how consumers combine different financial advice resources in managing their money. Most often a combination of sources and types are used. As observed in Hearts & Wallets’ 2024 focus groups, only about 1 in 5 “fully advised” participants rely on a single advisor. Hear from customers why it is important to categorize advice experiences, and set expectation on what different advice experiences deliver and how they are priced. 

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This report explores which financial tasks consumers find difficult, what they are most likely to seek advice on, and where the biggest advice gaps are. For example, 17% of households today find estate planning difficult but do not seek help. Advice gaps such as this represent an opportunity to provide help on a topic for consumers who find it difficult.

Key Findings include:

• Tasks are most difficult for the young. However, difficulty eases with age and assets. Nationally, the #1 most difficult task is “choosing appropriate investments."
  
• Tasks are not difficult in isolation. Most (68%) households who find one task very difficult also find 3+ tasks very difficult. Clustering of difficulties increases with assets.
  
• Seeking help is up, frequently for multiple tasks. The most avid advice-seekers use combinations of financial professionals and online resources that vary by generation.
  
• The biggest advice gaps in dollars are estate planning, “handling market volatility emotionally,” Roth conversion, buy/sell specific securities, balance goals and RMDs.
  
• Being prepared to help on multiple tasks yields a loyalty premium.

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The 2024 Portrait™ of U.S. Household Wealth reports on the current breakdown of household wealth in America. This report is updated annually. As the number of HHs in America climb and investable assets approach $78T, understanding who controls this wealth increases in importance as you refine strategies and target markets. Use this report to size markets, identify target audiences, understand how real estate equity plays a significant role in total wealth, and the importance of providing advice.

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Exclusively available to Trends™ subscribers. This fusion report draws from all three Hearts & Wallets' databases and is one of the most comprehensive looks at retirement that Hearts & Wallets has assembled. This is a must read for those who are focused on retirement planning & advice, household finance/wellness, and retirement income. Topics explored include: surprises in retirement, the increasing number of income sources in retirement, expectations vs. reality in retirement and the biggest disconnects, addressing real estate equity and living arrangements in retirement advice, and "chunk or nothing" vs. steady distributions.

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This report is our annual review of what customers want from the stores they do business with, how satisfied they are with these stores, and evolving trends in pricing. Wants and Pricing is one of our most highly anticipated reports of the year, and includes the 2023 "Top Performer" firms — those that set the bar across key competitive metrics.
Here are a few highlights:

• Clear and understandable fees is the top want for the mass-market, while being unbiased and putting clients' interests first is the top want for the $3M+ households
• Personal financial advice has become more important over time while satisfaction has remained flat, indicating a possible area for competitive differentiation
• Ameriprise, Edward Jones, Merrill, Morgan Stanley and USAA achieved one or more Hearts & Wallets Top Performer designations in 2023
• Pricing remains a problematic area with many customers not knowing how they pay for saving and investing, especially in workplace models. Flat fees are reportedly becoming more common.

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Attitudes & Sentiments 2023 features a first look at our 2023 Investor Quantitative™ (IQ) Database survey data. This year's annual report examines U.S. household attitudes and behaviors relating to investing, and how goals and concerns have evolved in the face of continuing inflation and increasing worldwide conflicts.

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Exclusively available to Trends™ subscribers. Given there is a high level of consumers confusion about pricing, we developed this qualitative report to look closely at their understanding and perception of pricing. Through the use of focus groups, we look at what services are considered worth paying for, and what are the preferred ways of paying for them. Here are some of the most significant learnings: 

• Today’s consumer talks about pricing more rationally than in the past, acknowledging that a company “needs to make money.” 
• Paying directly reduces “worry” about incentives. 
• Paying a flat fee or “commissions” is the preferred way to pay over a percentage of account value, and a flat fee is the preferred way to pay for financial planning.  

Our research shows that 20% of customers think their savings and investing solutions are free, so this report also explores consumer response to the word "free." Focus group consensus is that guidance and motivational support should be free, but personal financial planning should not be. Also, investment management services should not be free. 

Read this important report to learn more about how clients think of and respond to pricing - many dont know what they pay or how they pay.

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This report is our annual look at how households are currently allocating their assets and which investment managers are leading the industry. Here are a few highlights:

• Within the 95M households who know their products, 59M report they do not own mutual funds. Half of 59M households that don't own mutual funds get equity exposure from other products.
• Individual stocks are still the most commonly owned, but adoption of separately managed accounts (SMAs) is growing significantly.
• 19.4M households report using cryptocurrency. Crypto use has more than doubled from 9.4M households in 2020

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The 2023 Portrait™ of U.S. Household Wealth reports on the current breakdown of household wealth in America. This report is updated annually. Learn who controls the wealth by age and asset ranges through the Portrait Grid™.
Key finding highlights include:

• Nearly 130M households control $69.7T in investable assets, with growth in taxable now faster than retirement.
• Concentration of investable assets is increasing. In 2022, only 12% of total investable assets is controlled by households with <$500K.
• Households age 55+ control $51.4T. Among households with <$5M, Post-Retirees still dwarf all other lifestages in both asset and household terms.

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Exclusively available to Trends™ subscribers. Today, nearly two thirds of U.S. households are involved in intergenerational wealth transfer, with an estimated $17.5T changing hands over the next 20 years. Additionally, one in four U.S. households have funded trusts. Obviously there are implications for all financial service firms. This report looks at wealth transfer, family conversations about wealth transfer, who's planning to bequeath and inherit, and the use of trusts. One big takeaway - these topics are no longer just for the wealthy.

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This report examines patterns in household savings, trends in household asset allocation, behaviors that indicate financial wellness, and a key pitfall of most workplace and retail advice experiences. More households are saving more than at any time since 2012, with 30% of households saving 10%+ of income, nearly double 17% in 2012. Consumer use of liquid accounts has increased more than other account types, with the household use of taxable brokerage accounts growing up to 37% of households from 31% in 2021 and 29% in 2020. Of the solid financial behaviors that lead to better asset accumulation, contributing regularly to a retirement savings plan is currently the most difficult to adopt, with only 43% of households reporting that they “have a retirement savings plan and contribute to it regularly." Though having insurance needs covered is another important key indicator of financial wellness, most customer experiences today do not address this possible pitfall—presenting an opportunity to deliver advice more efficiently. Learn more

Today, 129M households make decisions $68.6T in investable assets, with 2 of 3 dollars in taxable accounts and the remainder in retirement. The 2022 Portrait™ of U.S. Household Wealth reports on the current breakdown of household wealth in America. This report is updated annually. Learn who controls the wealth by age and asset ranges through the Portrait Grid™. This research is the foundation of all market sizing at Hearts & Wallets. Use this report to size and refine your target markets using the TAM, SAM SOM methodology. Read more

A lot is going on! Inflation is at record highs, markets are down, Russia and China are center stage of geopolitical instability, and there is talk of a recession. Just released 2022 survey data reveals the top consumer attitudes, sentiments, concerns and goals, so you can see whats top of mind for your customers and where the opportunities lie. Here are a few stats: 46% of US households have high concern about inflation. And 1/3rd of these consumers are holding more than 90% of their assets in cash as buying power erodes. But more and more consumers feel their advisor is a partner to them, underscoring the value of advice and guidance in the face of the current headwinds. Read more

Nearly 50% of US households are interested in or use use fractional shares, approximately 25% use crypto, and 20% use securities-based lines of credit. What some would consider riskier investment products are on the rise -- especially with the younger generations. This report explores consumer trends related to these emerging products. Read more

There is power to planning - planners save and invest more, find fewer financial tasks challenging, have more diversified and appropriately allocated portfolios, and are more confident in their financial situation. This report looks at who plans by generation, lifestage, wealth group and marital status. It also looks at what inspires a consumer to plan and the most common resources used. Read more

This report explores which financial activities consumers find difficult, which consumer segments find specific activities difficult, and and where the biggest advice gaps are - all based on 2021 data. Also learn which consumers are more likely to see value in paying for advice when tasks are deemed difficult, and how it may help steer your advice pricing models. Read more

This report pulls from the new 2021 data on consumer attitudes towards saving, investing and advice. Investor sentiment is now at the highest level in a decade! Overall, people feel more positive about their finances despite concerns over inflation, the U.S. deficit and taxes. There is a renewed focus on investment goals, an increased interest in paying for professional financial advice and knowing which asset managers are managing their money. Read more

This report uses the Hearts & Wallets Inside Advice® Grid as a framework, to examine what consumers who choose different advice and service models want and need. We look at the quality of different types of advice offered across the industry and how advice categories impact customer satisfaction. Learn more

This report explores the drivers of share of wallet (SOW). Learn which customers are most likely to invest more, and how being the main source of retirement advice can influence their decision. Also, we cover why SOW is so important competitively and who is leading the race. Read more

Approximately 12 million households in America use robo advisors. Their popularity as is on the rise, and firms across the industry are working hard to win customers and capture share of wallet. This report examines trial to conversion and which offerings are growing fastest. Beyond the competitive landscape, the report also explores who is using robos, how much they are investing, and investor vs. non-investor profiles. Read more

This report covers the demographic breakdown of household wealth in America. U.S retail investors control $68.3T in investable assets. This is at an all time high but there is an unprecedented concentration of wealth in higher asset households. Learn who controls the wealth by life stage and asset level through the Portrait Grid™. This research is the foundation of all market sizing at Hearts & Wallets. This report covers the demographic breakdown of household wealth in America and features the Hearts & Wallets Portrait Grid™. Learn who controls the wealth by life stage and asset level Read more

New brokerage accounts are on the rise, more investors are trading stocks and cryptocurrencies, and environmental, social & governance (ESG) as an investment goal is growing in popularity among some very specific market segments. But, mutual fund and packaged product ownership across all wealth groups is on the decline, consumers struggle to identify their investment goals, and many are moving away from relying on financial professionals. This is especially concerning for lower asset Americans, who are at risk of missing out on creating wealth through safer, professionally managed products. This report looks at trends in online brokerage accounts and trading, the use of cryptocurrencies, investor goals & product ownership, and why getting back to basics may be good for everyone. Read more

The past year has many investors rethinking their plans. This report explores changes in target retirement ages; aspirations and reality for income replacement rates and the importance of advice; anticipated sources of retirement income for those approaching retirement compared to actual sources for those already retired; and a profile of the "Aspire to Retire by 55" group. Key Findings Include: - Even as more households want to “work full time as long as health permits,” target retirement dates are moving younger. - Ambitions for replacement rates have increased, but assets-to-income ratios show most people are still very unprepared for the end of full-time work. - Future retirees anticipate combining more sources of income than current retirees. The more income sources consumers have, the more value they see in paying for advice. - More households report participating in an employer-sponsored retirement plan. More generous matches increase overall household saving rate, especially at lower income levels. Saving into employer plans is up. - There are about 11M households in the “Aspire to Retire by 55” design target. Well positioned in some ways, these households need help to achieve this goal. Read more

COVID-19 has resulted in increased financial actions by consumers. Savings is on the top of the list for many with one in 5 households creating an emergency fund for the first time. This report looks at who is taking action, what they are doing, and the goals for the various segments of savers. Here are a few of the take-aways: Households whose work was affected by the COVID-19 crisis were more likely to have taken actions than households with no work disruption. Gen-X, Millennials and the New Generation have been much more active with financial responses to COVID-19 than the Silents and Boomers. We have classified savers into five segments beyond the traditional age-based categories that combine behavior, attitudes and household finances. Among the findings, "Big Savers" are the most valuable customers today, but "Aspiring Savers - High Potential" are looking to make changes in their financial lives and could be valuable over the long haul. Investment firms have the greatest reach with the Big Savers and banks have it with the Aspiring Savers - High Potential.

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The Hearts & Wallets Attitudes & Sentiment report annually tracks key consumer sentiments, goals and attitudes that are relevant to financial services firms and their strategic decisions. This year, we examine the impact of COVID-19 – how the initial shock and ongoing reactions have changed the consumer mindset and what it means for savings, investing and advice solutions. One in 3 consumers say “the COVID-19 crisis has changed their attitudes towards saving and investing,” and firms should provide appropriate outreach to this group. Nationally, since the onset of the crisis, consumer optimism regarding their financial futures has bounced back for some but not others. Many are setting goals again but are focused on the short term. And, receptivity to advice is warming with a renewed interest in banking, savings solutions and packaged products. Read more

Older Americans are looking for help on a broad range of topics, but most depend on retail sources of advice vs. what is offered through the workplace. Find out why. Learn the biggest complaints, suggestions, and possible solutions for bridging the gap between wants and current workplace offerings. Read more

This second COVID-19 tracking supplement examines the pandemic’s impact to health, work, saving investing and advice behaviors, connecting to core fields from Investor Quantitative™ Database. Over 29 million households have 1 or more partners out of work, which has significantly impact consumer’s finances and attitudes. As a result of the extraordinary levels of unemployment, report findings are weighted for unemployment, in addition to age and assets, to ensure that the voices of the unemployed were counted adequately in the national figures. The report covers financial goals, economic concerns, attitudes toward financial advice and advisors, sources of advice, spending, saving, financial responses, and consumer attitudes toward public policy. Read more

The annual Portrait™of U.S. Household Wealth gives you the power to size segments of U.S retail investors and understand the demand for solutions in the context of the total market. This sizing report provides new data on consumer households and the assets they control by age, wealth groups, lifestage and generation, drawn from government resources and the Hearts & Wallets Investor Quantitative™ Database. This year's report features market sizing on women, the retirement income market and emerging savers. Read more

Exclusively available to Trends™ subscribers. “Elder Financial Care” provides insights into the future dynamics of periodic vs. subscription. This concept test provokes price discovery by first presenting two separately priced options with distinct features and then a blended option with ambiguity in payment mechanisms. Segmentation is by desired scope of advice among older, affluent investors who are shopping for advice.

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This special tracking appendix examines the impacts of the COVID-19 crisis on U.S. consumer finances, attitudes and behaviors. This just-fielded data reveals impacts by generation, asset level, and work and health status. The analysis looks at income and spending cut-backs, changes in goals and financial actions, changes to investment mix and more. Read more

Examine pricing trends and the importance of customer wants for firms and financial professionals. In this report, U.S. households rate their top two financial services providers on 27 attributes for 5 key service dimensions and 3 pricing measurements. Satisfaction ratings include customer ratings for the top 24 providers nationally. Top Performer firms have ratings from their customers on top wants distinctly higher than customer ratings of other firms. Read more

Understand financial pain points that can shape products and services to support action taking. This report analyzes the level of difficulty consumers have with key financial tasks, rates of seeking help, and actions consumers are taking and plan to take in the future. Read more

Get the full picture on consumer goals, sentiments, concerns and attitudes toward saving and investing to guide strategy and inform decisions. Read more

This report is exclusively for Trends Subscribers. It covers consumer trust, pricing and competitive trends by category on Inside Advice^® Grid, the framework for classifying advice and guidance experiences developed through Inside Advice^® Benchmarking, the industry's most comprehensive benchmarking of advice and guidance experiences, and extensive consumer testing. Availability for license by Selected Report subscribers is expected sometime in H1 2020. Learn more

This highly sought-after report is Hearts & Wallets' annual market sizing study. The Portrait Grid™ is the foundation for sizing market opportunities. Gain actionable estimates of households and investable assets for the addressable U.S. retail investor market. Size by lifestage and generation, or with fact-based sizing exercises on personal advice shoppers. This report draws from the Hearts & Wallets IQ Database, which contains consumer buying pattern insights on 45,000 U.S. households, as well as U.S. Census Bureau, Survey of Consumer Finances, Federal Reserve Flow of Funds and Hearts & Wallets analysis. Read more