Groundbreaking New Survey Compares Investor Sentiment of Younger & Older Americans

WILMINGTON, Del., March 22 /PRNewswire/ -- ShareBuilder from ING DIRECT USA announced today the results of a first-of-its-kind comprehensive survey that measured investor sentiment by age groups. After a decade of economic challenges and a rollercoaster stock market, the survey reveals how younger and older investors uniquely perceive market opportunities in 2010 and how their investment habits differ.  Overall, the survey found investors of all ages have not been beaten down by poor portfolio performances or negative news about the stock market.  Instead, they are highly optimistic with plans to invest more this year than last, expecting higher returns in 2010 and taking a more hands-on approach to their investment decisions.  

The new survey showed that younger investors, age 21 to 39 years old, are more bullish and aggressive than older investors, age 40 to 65 years old. Four in ten (43 percent) younger investors plan to invest more in 2010 compared to 33 percent of older investors and their expectations are high.

While younger investors are willing to invest more in the market, few said they're relying on brokers, financial advisors or planners for advice. Instead, the survey showed that younger investors now rely more on financial websites and blogs (49 percent) and financial print publications (39 percent) than financial planners (35 percent) or brokers (18 percent) for investing advice.  Older investors are also relying on financial websites and blogs (47 percent) and financial print publications (41 percent) slightly more than planners (39 percent) and brokers (36 percent).

In spite of demonstrating more self-directed behavior, many investors believe they need lofty sums to get started. Almost half (48 percent) of younger investors think they need more than $500 to start investing compared to 56 percent of older investors.  Still, they are expecting higher returns.  Nearly one-third (31 percent) of young investors expect between 10 and 30 percent in annual returns.  Overall, more than a quarter of investors in both age groups expect an annual return between 10 percent and 20 percent.  

"American investors are a resilient bunch," said Dan Greenshields, President of ShareBuilder.  "Poor market performance isn't stopping them from continuing to invest, and in some cases, investing more than last year.  There is still a severe misperception, however, that investing is only for the rich.  Hopefully, by turning to new sources, like the financial media, for investment advice Americans will realize that isn't the case."  

The comprehensive survey looked at investor optimism, opportunity, obstacles, influences and expectations on returns. A comprehensive White Paper detailing the survey research is available.  

The five key findings include:

Investor Optimism

American investors are optimistic when it comes to their investments.  Forty-three percent (43 percent) of those 21 to 39 years old plan to invest more in 2010 compared to 33 percent of those 40 to 65 years old.  Believing that it's a good time to invest, Americans are also bullish about receiving annual returns of more than 10 percent on their investments.  More than one-in-four (26 percent) of younger investors and 28 percent of older investors expect an annual return between 10 percent and 20 percent.

A Hands-On Approach

Recent events and personal experience have resulted in American investors becoming more involved in their own investing decisions.  Older investors are leading this trend.  Almost half (49 percent) of those 40 - 65 have reduced or eliminated their reliance on financial professionals, while 37 percent of investors aged 21 – 39 have done so.

Overall, fewer investors are relying on financial professionals for advice about their investments, preferring instead to take more personal responsibility.  Younger investors currently rely more on financial websites and blogs (49 percent) and financial print publications (39 percent) than financial planners (35%) or brokers (18%) for investing advice.  Investors aged 40 – 65 also rely on financial websites and blogs (47 percent) and financial print publications (41 percent) more than planners (39 percent), brokers (36 percent) and family (19 percent).  

Obstacles to Investing

A majority of investors, both young and old, believe several hundred if not several thousand dollars are required in order to get started investing. On average, investors think they need $699 to get started investing.  Almost half (48 percent) of younger investors think they need more than $500 to start investing, compared to 56 percent of older investors.    

Parental Investing Influence

Young Americans typically eschew the advice of their parents on most social matters.  Yet, when it comes to investing they have a more welcome point of view.  For younger investors, parents are the single most-often cited influence in getting them started investing.  Almost one-third (30 percent) of the younger group say their parents had the biggest influence in getting them started investing.  Just 17 percent of investors 40 to 65 years old say their parents had the largest influence.  

About ING DIRECT USA and ShareBuilder

ING DIRECT, the nation's largest direct bank, is dedicated to inspiring Americans to become a nation of savers. Since its inception in 2000, more than 7.6 million Americans have entrusted their savings with ING DIRECT, building the bank to $90.3 billion in assets.  ING DIRECT has developed a comprehensive social media Savers Community, including Twitter, Facebook and it's We, The Savers blog.  For more information about ING DIRECT call 1-800-ING-DIRECT, and for information about its commitment to financial education visit Planet Orange.  

About ShareBuilder

ShareBuilder Securities Corporation is a leading online brokerage for investors who have long-term financial goals.  ShareBuilder believes everyone deserves a chance to invest in their future no matter their financial situation or place in life.  Whether you are new to investing or already a skilled trader, ShareBuilder makes investing easy.  Customers can open an account with no minimum investment, pay low commissions and enjoy no inactivity fees along the way.  With ShareBuilder, there are two smart ways to invest: Automatic Investing and Real-time Trading. Customers can select one or both to take control of their financial future.  ShareBuilder offers a range of investment products including stocks, exchange-traded funds, mutual funds and retirement solutions.  ShareBuilder Securities Corporation, a subsidiary of ING Bank, fsb, is a registered broker-dealer and member FINRA/SIPC. Follow us on Twitter and Facebook.

Securities products are: Not FDIC insured - Not Bank guaranteed - May lose value

About Harris Interactive

Harris Interactive is one of the world's leading custom market research firms, leveraging research, technology, and business acumen to transform relevant insight into actionable foresight. Known widely for the Harris Poll and for pioneering innovative research methodologies, Harris offers expertise in a wide range of industries including healthcare, technology, public affairs, energy, telecommunications, financial services, insurance, media, retail, restaurant, and consumer package goods. Serving clients in over 215 countries and territories through our North American, European, and Asian offices and a network of independent market research firms, Harris specializes in delivering research solutions that help us – and our clients – stay ahead of what's next. For more information, please visit www.harrisinteractive.com.

Methodology

This Investor survey was conducted online within the United States by Harris Interactive on behalf of ING DIRECT's ShareBuilder between January 7 – 19, 2010 among 1,021 general investors aged 21 – 65 years old who have an investment account that enables them to buy stocks, funds and other securities other than a 401k or 403b. No estimates of theoretical sampling error can be calculated; a full methodology is available.

SOURCE ING DIRECT USA