A recent survey by Fidelity Investments found that more individuals in the U.S. are seeking the advice of wealth management advisors and other financial professionals for assistance with meeting goals for their savings and investments. Specifically, the August 2013 survey found that of those individuals with an advisor, 89% have begun setting aside funds designated toward meeting the cost of college. This number compared favorably with the overall number of families saving for college, which is 69%. The survey was based on a research pool of 2,538 families making an annual income of at least $30,000 with children 18 and under.
This information suggests that more and more individuals at all income levels are seeking advice and help in meeting their goals for savings and investments. Preparing for future financial needs and a plan to meet those goals is becoming more important to many Americans looking to avoid the disastrous impact of the recent Great Recession of 2009 and its effect on housing values, seen as a core asset of many U.S. households.
Types of Savings and Investments Planned
The areas that appear to be of the greatest concern for many Americans when looking at their personal wealth and assets include college savings, retirement planning and overall financial wellness. A December 2013 Workplace Readiness survey conducted by Bank of America and Merrill Lynch found that many employees feel that more needs to be done to help them in achieving readiness for their retirement needs. Additionally, the survey found that employers have seen a change in their role to assist their employees in meeting their financial needs. Fifty-five percent of employers believed a link existed between employee financial wellness and higher productivity. Seventy-three percent of human resources professionals have asserted a need to develop an expertise in healthcare and retirement benefits in order to effectively discharge their duties.
Relationship between Income and Wealth Management
Americans rank fairly low when compared to other industrialized countries in terms of its rate of savings and investments. According to the Organization for Economic Cooperation and Development (OECD), the household savings rate in the United States is lower than most industrialized countries. A correlation however exists between higher household incomes and higher savings rates. Additionally, U.S. households that hold a higher perceived wealth spend more disposable income and have a lower savings rate in what is referred to as the wealth effect.
To take control over your savings and retirement funds, contact Lake Tahoe Wealth Management.