With an ocean of resources, investors are surfing their way to confidence

With an ocean of resources, investors are surfing their way to confidence
Schwab survey shows optimism cutting across generations as investment advice, education, and tools become more available.
JUN 14, 2024

More than 60 percent of Americans believe they are better positioned to achieve their financial goals compared to previous generations, according to Schwab’s eighth annual Modern Wealth Survey.

This optimism was notably strong among Boomers, with 66 percent expressing confidence in their financial futures, closely followed by Gen X at 63 percent, Millennials at 62 percent, and Gen Z at 60 percent.

Schwab’s survey revealed that Americans attribute their improved financial standing to various factors, including more ways to build wealth (50 percent), increased accessibility to investing (46 percent), and a broader range of investment options (46 percent).

Gen Z investors in particular cited improved access to investing as the primary reason for their financial confidence. This generation, starting with those born in the late 1990s, began saving and investing at an average age of 19, significantly earlier than Boomers, who started at 35.

“It’s a very positive sign to see that more Americans than ever before are engaged with their personal finances and taking steps to build long-term wealth, in particular younger generations who are getting started with saving and investing earlier in their lives,” Jonathan Craig, head of investor services at Charles Schwab said in a statement.

The survey indicates that nearly 70 percent of Americans are confident in their investment strategy, pointing to the availability of financial advice and knowledge (51 percent) and the ability to easily research companies and investments (37 percent) as the top reasons for this confidence.

Gen Z confidence levels topped the charts at 71 percent, with early financial education being a significant factor. Over a quarter of Gen Z respondents reported learning about investing in school, significantly more than older generations.

When seeking financial advice, respondents said they prefer professional financial advisors (59 percent) and family or friends (57 percent) over social media platforms (42 percent).

Most Americans do not rely on social media influencers for financial guidance, with 76 percent indicating they do not follow finfluencers. Nearly two-thirds believe social media has had no impact on managing their investments, and only 24 percent feel it has made managing money easier.

Concerningly, the survey also highlights a gap in financial planning, with only 36 percent of Americans saying they have a written financial plan. Among those without a plan, the primary reasons cited are not having enough money (43 percent), the complexity of financial planning (25 percent), and a lack of time (21 percent).

“While we see that Americans are making great strides with their personal finances overall, there is still room for improvement when it comes to more formalized financial planning,” said Rob Williams, managing director of financial planning at Charles Schwab. “Once clients start the process, they realize a financial plan isn’t just a document to file away.”

Latest News

GWG’s Heppner hires Puff Daddy’s attorneys as criminal sentencing looms
GWG’s Heppner hires Puff Daddy’s attorneys as criminal sentencing looms

According to a federal charges Bradley Heppner, 60, received more than $150 million in payments through funneling money from GWG Holdings to a shell company.

Fintech bytes: FINNY signs Visionary Square for pay-as-you-go AI prospecting program
Fintech bytes: FINNY signs Visionary Square for pay-as-you-go AI prospecting program

TCI Wealth Advisors also has also tapped JIFFYAI to unify onboarding and servicing, while TradePMR adds ICE market data to its Fusion advisor platform

RIA moves: Kintra Wealth adds $355M Great Scott Financial practice
RIA moves: Kintra Wealth adds $355M Great Scott Financial practice

Also, CAPTRUST adds a $300 million planning team from Sanctuary in its home market of Raleigh, and Sequoia Financial Group buys a Boulder family office.

Meta deal shields Zuckerberg from California wealth tax bill
Meta deal shields Zuckerberg from California wealth tax bill

New nonvoting shares would let the Meta CEO cover eyed Proposition 40 tax without losing control, in exchange for an eight-year residency pledge

Inheritance conflict is the rule, not the exception, Wells Fargo finds
Inheritance conflict is the rule, not the exception, Wells Fargo finds

New research exposes a wide gap in how affluent parents and their adult children understand and prepare for the transfer of family wealth.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor