SANDY, Utah, Oct. 16, 2017 -- While many Americans identify with the term "Sunday Scaries," referring to the anxiety they feel before the start of the workweek, new survey data suggests the "Someday Scaries" could be an even bigger boogeyman.
Three in five Americans (60%) say they know someday they will need to be more financially secure, they just don't know how to get there. This number increases to 70% for those between the ages of 18-39, according to a new independent market survey of more than 2,000 U.S. adults.
Compounding the problem, 61 percent of adults say they find investing in the stock market to be "scary or intimidating," again with data showing Millennials feeling significantly more intimidated than GenXers and Boomers. Over half of Americans (52%) agree that someday they will invest or invest more in the stock market, "but not right now."
"The paradox this survey data underscores is that people are scared about not being prepared for the future, so they put off thinking about it, but history has proven again and again that the key to achieving financial security is to start saving and investing early," said Rich Hagen, president of Ally Invest. "What people need most is to face the 'Someday Scaries' head on and get started, taking one small step at a time."
Ally Invest's Hagen offers four tips to address survey respondents' top fears when it comes to investing:
Scary #1. The thought of making a bad investment and losing money (50% of respondents)
Hagen: The way to mitigate risk is through diversification. Investors should look at investing offerings that provide a diversified portfolio with a balance based on their overall investing goals. In general, a portfolio that contains a variety of ETFs, bonds, and cash is a great place to start.
Scary #2. The amount of money required to invest (35% of respondents)
Hagen: What most people don't realize is that it's become very affordable to invest in the market. With online brokerage and wealth management offerings, you can buy and sell stocks for yourself for under $5/trade with no account minimums or hidden fees. And if you're someone who needs a little more guidance, there are automated portfolios of diversified ETFs that you can choose and follow online for a fraction of the cost of traditional financial advisors.
Scary #3. Not knowing whom to trust to help you invest (31% of respondents)
Hagen: It's safe to say that no one cares more about your money and future than you do. So take control – it's never been easier thanks to technology. Start by doing your homework -- there are a number of highly-credible and impartial online sites that can help you find the right investment partner by comparing fees, ease of use, tools, and customer service.
Scary #4. Not knowing how to get started investing (24% of respondents)
Hagen: Take it step by step. Start with a savings account that will give you a competitive rate of return and pay yourself first by putting whatever you can, even if it's just a small amount, from each paycheck into that savings account. Even saving $10 a week starts to add up over time. Then when you've saved several months' worth, you can transition some of that into a low-cost, higher performing investment account to help you build wealth over time. Investment account fees and minimums have decreased significantly in recent years, making it easier and more affordable than ever to get invested.
Survey Methodology: This online survey was conducted by Regina Corso Consulting on behalf of Ally Financial between September 7 and 11, 2017 among 2,024 U.S. adults, aged 18 and older. Figures for age, gender, education, income, employment and region were weighted to bring them into line with their actual proportions in the population. Because the sample is based on those who agreed to participate, no estimates of sampling error can be calculated.
Results of the survey are for informational purposes only and not intended as investment advice. Investing involves risk. Thus, before investing you should consider what is suitable given your particular circumstances or seek professional advice.
For a copy of the full survey results, contact: firstname.lastname@example.org.
About Ally Financial Inc.
Ally Financial Inc. (NYSE: ALLY) is a leading digital financial services company and a top 25 U.S. financial holding company offering financial products for consumers, businesses, automotive dealers and corporate clients. Ally's legacy dates back to 1919, and the company was redesigned in 2009 with a distinctive brand, innovative approach and relentless focus on its customers. Ally has an award-winning online bank (Ally Bank Member FDIC, Equal Housing Lender) offering deposits, credit card and home loan products, one of the largest full service auto finance operations in the country, a complementary auto-focused insurance business, a growing wealth management and online brokerage platform, and a trusted corporate finance business offering capital for equity sponsors and middle-market companies.
The company had approximately $164.3 billion in assets as of June 30, 2017. For more information, visit the Ally press room at http://media.ally.com or follow Ally on Twitter: @AllyFinancial.
Securities products and services are offered through Ally Invest Securities LLC, member FINRA and SIPC. Investment advisory services are offered through Ally Invest Advisors Inc., an SEC registered investment adviser. Ally Invest Advisors Inc. and Ally Invest Securities LLC are wholly owned subsidiaries of Ally Invest Group Inc. Investments are NOT FDIC INSURED, NOT BANK GUARANTEED and MAY LOSE VALUE.
Sue Parente at Tier One Partners