E*TRADE Study Reveals Divide-and-Conquer Investing Mentality among Millennial Couples

Millennials most likely to have one partner control family
investments, although many feel guilty about making moves without
talking to their better half

NEW YORK–(BUSINESS WIRE)–E*TRADE Financial Corporation (NASDAQ: ETFC) today announced results
from the most recent wave of StreetWise, the E*TRADE quarterly
tracking study of experienced investors. As Valentine’s Day approaches,
the study looked at how investments are managed by couples across age
groups:


  • Money talks aren’t taboo for Millennials. Nearly two-thirds
    (65%) of Millennial couples discuss their investment portfolio on a
    regular basis, compared to half (50%) of the total population.
  • Millennial couples are much more okay with their partner calling
    the investment shots.
    Over four out of five (82%) millennials are
    comfortable with their partner making investing decisions without
    them, compared to roughly half (55%) of the total population.
  • And Millennial investing decision-makers are much more likely to
    execute without their partner’s input.
    Almost two-thirds (64%) of
    Millennials will make investment decisions without informing their
    partner, compared to less than half (46%) of the total population.
  • Yet making those solo decisions causes guilt. Almost half (49%)
    of Millennial investing decision-makers feel guilty after making a
    decision without input, compared to less than a quarter (24%) of the
    total population.

“While it’s promising that this generation is discussing their finances
more, it’s less encouraging that they’re making investment choices
independently,” said Mike Loewengart, VP of Investment Strategy at
E*TRADE Financial. “Millennials face a great many financial headwinds,
including student debt, inflated housing prices, and health care costs.
The need for families to take a holistic approach to wealth management
is arguably even more important for these young savers, and in fact may
help to alleviate the guilt registered in the study.”

Mr. Loewengart provided additional strategies for couples to consider
when planning for their long-term financial goals:

  • Examine your risk level as a couple. Ask each other what
    matters most when it comes to your family’s nest egg. It could be
    growth, preservation, or something in between. Investors may find that
    their individual goals are very different from what they hope to
    achieve with their significant other. Nailing this down early can give
    couples a runway for smoothly planning their finances throughout their
    life together.
  • Expect the unexpected. Unexpected events can often cause
    relationship tensions. Saving for an emergency fund may seem daunting
    but could alleviate headaches down the road. Set aside a small amount
    each week and aim for three to six months of living expenses.
  • Look under the hood of your retirement plans. Take a close look
    at your respective 401(k) and IRA options with an eye toward
    optimizing contributions. If one partner has a dollar-for-dollar
    employer match and another has a five-percent match, it may be better
    to direct contributions to the account that has the better match.

About the Survey

This wave of the survey was conducted from January 2 to January 10 of
2019 among an online US sample of 910 self-directed active investors who
manage at least $10,000 in an online brokerage account. The survey has a
margin of error of ±3.20% at the 95% confidence level. It was fielded
and administered by Research Now. The panel is broken into thirds of
active (trade more than once a week), swing (trade less than once a week
but more than once a month), and passive (trade less than once a month).
The panel is 60% male and 40% female, with an even distribution across
online brokerages, geographic regions, and age bands.

E*TRADE aims to enhance the financial independence of traders and
investors through a powerful digital offering and professional guidance.
To learn more about E*TRADE’s trading and investing platforms and tools,
visit etrade.com.

For useful trading and investing insights from E*TRADE, follow the
company on Twitter, @ETRADE.

Referenced Data

 
How often do you discuss your portfolio and investing with your
spouse or partner?
  TOTAL   AGE
Q1’19 25–34   35–54   55+
Top two box 50% 65% 48% 44%
Always 15% 30% 14% 7%
Frequently 35% 35% 34% 37%
Sometimes 37% 34% 34% 42%
Rarely 10% 1% 14% 12%
Never 3% 0% 4% 2%
Bottom two box   13%   1%   18%   14%
 
How comfortable are you with your spouse or partner making an
investing decision without your input?
  TOTAL   AGE
Q1’19 25–34   35–54   55+
Top two box 55% 82% 57% 40%
Very comfortable 21% 40% 17% 13%
Somewhat comfortable 34% 42% 40% 27%
Somewhat uncomfortable 24% 12% 24% 30%
Very uncomfortable 21% 6% 19% 30%
Bottom two box   45%   18%   43%   60%
 
How often, if at all, do you make investing decisions that you do
not inform your spouse or partner about?
  TOTAL   AGE
Q1’19 25–34   35–54   55+
Top two box 46% 64% 48% 32%
Always 16% 28% 17% 8%
Frequently 30% 36% 31% 24%
Sometimes 23% 22% 25% 24%
Rarely 18% 9% 16% 25%
Never 13% 5% 11% 19%
Bottom two box   31%   14%   27%   44%
 
How frequently do you make investing decisions without telling
your spouse or partner that you later felt guilty about?
  TOTAL   AGE
Q1’19 25–34   35–54   55+
Top two box 24% 49% 28% 7%
Always 10% 29% 8% 2%
Frequently 14% 20% 20% 5%
Sometimes 14% 18% 16% 8%
Rarely 22% 15% 22% 28%
Never 40% 18% 34% 57%
Bottom two box   62%   33%   56%   85%

“Millennial” defined as age 25–34 // “Gen X” defined as age 35–54 //
“Baby
Boomer” defined as age 55+

About E*TRADE Financial and Important Notices

E*TRADE Financial and its subsidiaries provide financial services
including brokerage and banking products and services to retail
customers. Securities products and services are offered by E*TRADE
Securities LLC (Member FINRA/SIPC). Commodity futures and options on
futures products and services are offered by E*TRADE Futures LLC (Member
NFA). Managed Account Solutions are offered through E*TRADE Capital
Management, LLC, a Registered Investment Adviser. Bank products and
services are offered by E*TRADE Bank, and RIA custody solutions are
offered by E*TRADE Savings Bank, both of which are national federal
savings banks (Members FDIC). More information is available at www.etrade.com.

The information provided herein is for general informational purposes
only and should not be considered investment advice. Past performance
does not guarantee future results.

E*TRADE Financial, E*TRADE, and the E*TRADE logo are trademarks or
registered trademarks of E*TRADE Financial Corporation. ETFC-G

© 2019 E*TRADE Financial Corporation. All rights reserved.

E*TRADE Financial Corporation and Research Now are separate companies
that are not affiliated. E*TRADE Financial Corporation engages Research
Now to program, field, and tabulate the study. Research Now Group, Inc.
provides digital research data and has locations in the Americas,
Europe, the Middle East and Asia-Pacific. For more information, please
go to www.researchnow.com.

Contacts

E*TRADE Media Relations
646-521-4418
mediainq@etrade.com

E*TRADE Investor Relations
646-521-4406
IR@etrade.com