E*TRADE Study Shows Investor Interest in a Retirement-Focused Finance Curriculum

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Nearly half of experienced investors would have enrolled in “Saving
for Retirement”

NEW YORK–(BUSINESS WIRE)–E*TRADE Financial Corporation (NASDAQ:ETFC) today announced results from
the most recent wave of StreetWise, E*TRADE’s quarterly tracking
study of experienced investors. Results show that retirement saving
weighs heavily on investors’ minds, and many wish they had learned more
about saving for retirement.


  • Not having enough saved for retirement is a greater fear than physical
    injury or job loss.
  • Retirement is the number-one reason why experienced investors save for
    the long term.
  • “Saving for Retirement” is the finance course investors most wish they
    had taken in school.

Experienced investors’ retirement concerns come as nearly a quarter of
all investors have made early withdrawals from a retirement account,
with more than one in 10 having done so to make a large purchase, to
vacation, or just to spend money on themselves. Of investors who made
early withdrawals, roughly half of those under age 55 regret it.

“Education and discipline are crucial to a regret-free retirement
savings plan,” said Lena Haas, SVP, Retirement, Investing and Savings at
E*TRADE Financial. “Knowledge builds confidence and certainty that you
are on track and making smart decisions. The beginning of the school
year is a reminder that, when it comes to investing, the learning never
stops. Investors of all experience levels can benefit from additional
education in learning how to best prepare for retirement.”

Ms. Haas highlighted the following tips and resources for investors
looking to learn more about saving for retirement:

  • There are myriad resources available for all experience levels. You
    do not need a degree in finance to take more control over your
    retirement savings. Investors have access to an unprecedented
    amount of educational resources both online and in-person from
    beginner to advanced levels. E*TRADE offers multiple
    courses
    covering topics ranging from asset classes, to portfolio
    management and risk. Some allow users to take an interactive quiz at
    the end to help measure and track progress. Users can also sign up for
    live events, including in-person presentations, as well as branch and
    Web-based seminars.
  • Investors can learn their own way, at their own pace.
    Educational content comes in a variety of formats, including online,
    print, interactive, and video. In addition to more than 400 individual
    articles and financial expert analyses, E*TRADE offers 50+ educational
    videos through its mobile app — each with a run time of roughly three
    minutes — so users can receive bite-sized information while on the go.
  • Investors can create a curriculum tailored to them. E*TRADE’s Investor
    Education Center
    allows customers to filter and sort by topic,
    content type, experience level, and rating. Investors can bookmark
    content and provide ratings and feedback.

For the full report of the Q315 StreetWise study results, click here.

E*TRADE helps investors balance today’s needs with tomorrow’s goals
through pioneering digital tools and personalized, smart guidance, both
online and from nearly 300 seasoned Financial Consultants on the phone
or in-person at branches throughout the U.S. To learn more about how
E*TRADE helps investors make retirement easier, visit etrade.com/retirement.

For useful insight from E*TRADE and third-party investment
professionals, follow the company on Twitter, @ETRADE.

About E*TRADE Financial

E*TRADE Financial and its subsidiaries provide financial services
including online brokerage and banking products and services to retail
customers. Specific business segments include Trading and Investing and
Balance Sheet Management. Securities products and services, including
stocks, bonds, mutual funds, ETFs, education, and online tools are
offered by E*TRADE Securities LLC (Member FINRA/SIPC). Managed Account
Solutions are offered through E*TRADE Capital Management, LLC, an
investment adviser registered with the Securities and Exchange
Commission. Bank products and services are offered by E*TRADE Bank, a
Federal savings bank, Member FDIC, or its subsidiaries and affiliates.
More information is available at www.etrade.com.
ETFC-G

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About the Survey

This wave of the survey was conducted from July 1 to July 12 of 2015
among an online U.S. sample of 1004 self-directed investors who manage
at least $10,000 in an online brokerage account. The survey has a margin
of error of ±3.1 percent at the 95 percent confidence level. It was
fielded and administered by ResearchNow. The tracking study fields
quarterly at the beginning of each quarter and does not reflect data
from the complete quarter. 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)
investors. The panel is 65 percent male and 35 percent female with an
even distribution across online brokerages, geographic regions, and age
bands.

Referenced Data

 
How often, if at all, do you worry about each of the following?

** Summary of ‘Always/ Frequently’ **

  TOTAL   AGE: 25-34   AGE: 35-54   AGE: 55+
Not having enough saved for retirement 30% 37% 35% 21%
Loss of a loved one 24% 33% 22% 20%
Not understanding how to invest smartly 22% 39% 20% 14%
Personal relationship issues 17% 32% 18% 8%
Physical injury 16% 27% 16% 11%
Loss of a job   16%   29%   19%   7%
 
What is the main reason you are saving for the long-term? (% =
Selected as a top three choice.)
TOTAL AGE: 25-34 AGE: 35-54 AGE: 55+
For retirement 72% 57% 76% 78%
For an unknown emergency 42% 37% 43% 45%
Simply because it’s the right thing to do 41% 41% 36% 46%
For a big purchase such as a car or new home 18% 32% 14% 14%
To get rich 14% 20% 16% 10%
For summer vacation or entertainment 14% 15% 14% 13%
To pay for an education 13% 15% 20% 4%
To take care of a parent or other older relative 7% 9% 7% 4%
I am not saving for the long-term, just playing the stock market 3% 3% 3% 4%
Other   5%   3%   3%   9%
 

Which, if any, investing course do you wish you could have
taken when you were younger, which would have helped you

make
smarter financial decisions? (% = Selected as a top two choice.)

TOTAL AGE: 25-34 AGE: 35-54 AGE: 55+
Saving for Retirement 48% 45% 51% 49%
Understanding the Markets 47% 49% 45% 49%
Active Trading 101 28% 34% 28% 27%
Introduction to Asset Classes & Derivatives 20% 28% 21% 16%
Other   14%   11%   14%   14%
 
Have you ever taken out money from an IRA or 401(k) before the
age of 59.5 and, if so, for what? (Select all that apply)
TOTAL   AGE: 25-34 AGE: 35-54 AGE: 55+
No, I have never taken out money from an IRA or 401(k) before the
age of 59.5
76% 72% 76% 82%
Yes (Net) 24% 28% 25% 18%
Yes, to make a large purchase 7% 8% 9% 5%
Yes, because I became unemployed 7% 10% 7% 4%
Yes, to pay for education 6% 9% 7% 2%
Yes, for a medical emergency 5% 10% 5% 2%
Yes, to simply spend on myself or my family 3% 4% 2% 4%
Yes, to spend on vacations or entertainment 1% 1% 1%
Yes, Other   3%   2%   3%   5%
 
Have you ever regretted your decision to take money from an IRA
or 401(k) before the age of 59.5?
TOTAL AGE: 25-34 AGE: 35-54 AGE: 55+
Somewhat/Very Much Regretted 44% 51% 51% 19%
Regretted a little bit 19% 26% 16% 21%
Did not regret at all   37%   23%   33%   60%
 

Important Notices

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

© 2015 E*TRADE Financial Corporation. All rights reserved.

E*TRADE Financial Corporation and ResearchNow are separate companies
that are not affiliated. E*TRADE Financial Corporation engages
ResearchNow to program, field, and tabulate the study.

Contacts

E*TRADE Media Relations
Thayer
Fox, 646-521-4418
thayer.fox@etrade.com
or
E*TRADE
Investor Relations

Brett Goodman, 646-521-4406
brett.goodman@etrade.com