Merrill Edge Report: Mass Affluent Mindset At Every Stage

Merrill Edge Report: Mass Affluent Mindset At Every Stage EDGE Bank of America Corporation Bank of America's Merrill Edge Report is a semi-annual study that offers an in-depth look at the financial concerns, priorities and behaviors of mass affluent consumers, defined as people with $50,000-$250,000 in total household investable assets. For more information on Merrill Edge visit www.merrilledge.com. FINANCIAL INTIMACY* 69" of mass affluent % 64" say these ongoing couples are discussing financial conversations cause their finances at least a them to be more confident in few times per month. achieving their financial goals. fii 38%. discuss their finances more 34% 24 discuss their discuss their finances more than their sex life than the upcoming election finances more than their kids They talk about... THE DAY-TO-DAY STUFF BANK Day-to-day purchases, such as groceries (39% ) Managing debt, such as credit cards (39%) THE BIG STUFF THEIR FUTURE Large purchase, such as a home or car (41%) Saving for retirement (31%) EVERYTHING IN BETWEEN Paying down their mortgage (22%) Maintaining or increasing their home's value (18%) Saving for their child's college (12%) Entertainment such as shows and dinners (19%) *Mass Affluent At All Life Stages MARRIED...WITH (YOUNG) CHILDREN At a Glance 77% plan to help pay their child's college loans 77% back partially or fully 75% believe the cost of college education is worth the return on investment 75% 63% think they're on track to maintain their desired lifestyle in retirement 63% 63% expect to retire later than they did a 63% year ago 62% started saving for their child's education before the child was six years old 62% 35% saved differently for their second child's education than they did their first 35% 20 40 60 80 100 Top Priorities...They're Planners 85%, track and manage 84% save for retirement their money/budgeting 77% balance short and long-term goals GEN (WORR)Y Gen Y (18-34) at a Glance 84% 77% 59% 59% 52% think they're on track to maintain plan to fund their retirement with their personal savings and public sector programs, like Social Security or Medicare seek out an expert believe the expect to retire later than they did a year ago cost of college to help them manage finances education is their desired lifestyle worth the return in retirement on investment Gen Y has a lot on their mind... IRA 401K Impact of the economy on my ability to meet financial goals (83%) Rising health care costs or expenses (75% ) Ensuring my retirement assets will last throughout my lifetime (75%) Being able to afford the lifestyle I want in retirement (75%) ...But they know where to turn for help. Gen Yers most likely to seek advice from friends a family well above the national average (58% compared to 35% on average) vast majority of Gen Y (84%) : eeking expert guidance to help them manage financial tasks compared to the national average of mass affluent (76%) GEN Y NATIONAL AVERAGE Optimistic About Education Gen Y respondents are more likely to think college is worth the investment (77%) compared to 62% of Gen Y 35 to 50 77% 62% 35-50 year olds THE RULES OF RETIREMENT Retirees at a Glance 88% think they're on track to maintain their desired 72% say ongoing financial conversations with their spouse or partner 60% believe the cost of 58% plan to fund their retirement with their college is worth the return on investment lifestyle in retirement personal savings and public sector programs cause them to be more confident in achieving their financial goals Retirees have it under control... With more experience behind them, retirees generally feel that their finances are more under control than working mass affluent (48% versus 32%) 70% seek help less often from an expert to make financial decisions versus 79% of the working mass affluent RETIREES WORKING MASS AFFLUENT The working have longer to go... 75 56% are planning to retire later than they were compared to one year ago Biggest threats to retirement lifestyle: Increased cost of living 24% Rising cost of health care 24% Global economic crises and uncertainties 14% Political change, or lack of political change 9% 10 20 30 Source: Merrill Edge Report Fall 2012 Meril Eege Report Methodology Ketchum Gobal Research & Analyios and Braun Research conducted the Bank of America Men Eage Report survey by phone between August 20 and Agust 28, 2012 on behaf of Bank of America. Baun contactec a nationally representative sample of 1,000 Americarn in he United States with investable ansets between $50.000 and $24,90, and oversampled 300 mass affuent in San Franchco and Los Angeles. The margin of emorn-31 perent for the national sample and -5.7 percent for the oversample markets with both reported ata 95 percent contidence level Menil Edge in available through Meril Lynch, Pierce, Fenner & Smith Incorporated (MLPTAS, and consists of the Meril Ege Advisory Center (investment guicance) and setdirected orlire inventing Investment products Are Not FDIC Insured, Are Not Bank Guaranteed, May Lose Value MPrassa regiatered brokerdealer, member SIPC and a wholy owned subsidiary of Dank of America Corporation. Banking products are provided by Bark of America, NA, and affliated banks, members FDIC and wholy owned subsidiares of BAC. Merrill Edge Report: Mass Affluent Mindset At Every Stage EDGE Bank of America Corporation Bank of America's Merrill Edge Report is a semi-annual study that offers an in-depth look at the financial concerns, priorities and behaviors of mass affluent consumers, defined as people with $50,000-$250,000 in total household investable assets. For more information on Merrill Edge visit www.merrilledge.com. FINANCIAL INTIMACY* 69" of mass affluent % 64" say these ongoing couples are discussing financial conversations cause their finances at least a them to be more confident in few times per month. achieving their financial goals. fii 38%. discuss their finances more 34% 24 discuss their discuss their finances more than their sex life than the upcoming election finances more than their kids They talk about... THE DAY-TO-DAY STUFF BANK Day-to-day purchases, such as groceries (39% ) Managing debt, such as credit cards (39%) THE BIG STUFF THEIR FUTURE Large purchase, such as a home or car (41%) Saving for retirement (31%) EVERYTHING IN BETWEEN Paying down their mortgage (22%) Maintaining or increasing their home's value (18%) Saving for their child's college (12%) Entertainment such as shows and dinners (19%) *Mass Affluent At All Life Stages MARRIED...WITH (YOUNG) CHILDREN At a Glance 77% plan to help pay their child's college loans 77% back partially or fully 75% believe the cost of college education is worth the return on investment 75% 63% think they're on track to maintain their desired lifestyle in retirement 63% 63% expect to retire later than they did a 63% year ago 62% started saving for their child's education before the child was six years old 62% 35% saved differently for their second child's education than they did their first 35% 20 40 60 80 100 Top Priorities...They're Planners 85%, track and manage 84% save for retirement their money/budgeting 77% balance short and long-term goals GEN (WORR)Y Gen Y (18-34) at a Glance 84% 77% 59% 59% 52% think they're on track to maintain plan to fund their retirement with their personal savings and public sector programs, like Social Security or Medicare seek out an expert believe the expect to retire later than they did a year ago cost of college to help them manage finances education is their desired lifestyle worth the return in retirement on investment Gen Y has a lot on their mind... IRA 401K Impact of the economy on my ability to meet financial goals (83%) Rising health care costs or expenses (75% ) Ensuring my retirement assets will last throughout my lifetime (75%) Being able to afford the lifestyle I want in retirement (75%) ...But they know where to turn for help. Gen Yers most likely to seek advice from friends a family well above the national average (58% compared to 35% on average) vast majority of Gen Y (84%) : eeking expert guidance to help them manage financial tasks compared to the national average of mass affluent (76%) GEN Y NATIONAL AVERAGE Optimistic About Education Gen Y respondents are more likely to think college is worth the investment (77%) compared to 62% of Gen Y 35 to 50 77% 62% 35-50 year olds THE RULES OF RETIREMENT Retirees at a Glance 88% think they're on track to maintain their desired 72% say ongoing financial conversations with their spouse or partner 60% believe the cost of 58% plan to fund their retirement with their college is worth the return on investment lifestyle in retirement personal savings and public sector programs cause them to be more confident in achieving their financial goals Retirees have it under control... With more experience behind them, retirees generally feel that their finances are more under control than working mass affluent (48% versus 32%) 70% seek help less often from an expert to make financial decisions versus 79% of the working mass affluent RETIREES WORKING MASS AFFLUENT The working have longer to go... 75 56% are planning to retire later than they were compared to one year ago Biggest threats to retirement lifestyle: Increased cost of living 24% Rising cost of health care 24% Global economic crises and uncertainties 14% Political change, or lack of political change 9% 10 20 30 Source: Merrill Edge Report Fall 2012 Meril Eege Report Methodology Ketchum Gobal Research & Analyios and Braun Research conducted the Bank of America Men Eage Report survey by phone between August 20 and Agust 28, 2012 on behaf of Bank of America. Baun contactec a nationally representative sample of 1,000 Americarn in he United States with investable ansets between $50.000 and $24,90, and oversampled 300 mass affuent in San Franchco and Los Angeles. The margin of emorn-31 perent for the national sample and -5.7 percent for the oversample markets with both reported ata 95 percent contidence level Menil Edge in available through Meril Lynch, Pierce, Fenner & Smith Incorporated (MLPTAS, and consists of the Meril Ege Advisory Center (investment guicance) and setdirected orlire inventing Investment products Are Not FDIC Insured, Are Not Bank Guaranteed, May Lose Value MPrassa regiatered brokerdealer, member SIPC and a wholy owned subsidiary of Dank of America Corporation. Banking products are provided by Bark of America, NA, and affliated banks, members FDIC and wholy owned subsidiares of BAC.