Investment Industry Psychographics and Trends

Goals

To understand the psychographics and investment trends across the investment industry, specifically in the areas of investing perception, financial companies, and audience media consumption and have been laid out in the attached document. The information will be used for marketing and media planning, as well as providing consultative services for the client.

Early Findings

Affluent Millennials and Generation X

  • Adults in age group 25-45 years are considered to be millennials (25-38 years) and Generation X (39-45 years).
  • According to Investopedia, affluent millennials (median income $132,000) "are significantly less likely than Gen X to own stocks (37% vs. 47%), but just as likely as Gen X to own bonds (19% vs. 18%), and more likely to allocate their income to a low-yield savings account (21% vs. 16%)."
  • Despite having more time to invest and recuperate losses and despite having a larger income affluent millennials are risk averse possibly because they fear losing money.
  • Affluent millennials allocate their money as follows: 26% goes to their checking account, 21% goes to their savings account, 15% goes towards high-risk investments, and 15% goes towards low-risk investments.
  • Affluent Generation X allocate their money as follows: 22% goes to their checking account, 16% goes to their savings account, 17% goes towards high-risk investments, and 21% goes towards low-risk investments.
  • Only 37% of millennials believe they are knowledgeable about investing and they perceive investing as responsible, smart and necessary. The rest (who feel less confident about their investment knowledge) perceive investing as intimidating, risky, overwhelming, and complicated.

Summary of Findings

  • During the initial hour of research, we searched for information on adults aged 25-45 years and their attitude towards investing. As this group falls in the generation group millennials and Generation X, we sought surveys for these two generations.
  • It was possible to find information on affluent millennials and Generation X-ers, how they allocate their money and how they feel about investing.
  • Below the suggestions for further research are provided. Please note that we were unable to scope all requested research and that contact must be made with customer service at Wonder to discuss scoping of the research that was not included.

Proposed next steps:

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