Who are the Mass Affluent? - US - April 2008

Table of Contents

• Scope and Themes
• What you need to know
• Scope of this report
• Definition
• Terms
• Executive Summary
• Who are the mass affluent?
• Credit and debit
• Technology
• Mass affluent and the economy
• Financial priorities
• Mass affluent and banking
• Differentiation is key
• Financial decision-making
• Ethics
• Companies targeting the MA
• The Market
• Market size and growth forecast
• Mintel' s projection for Mass Affluent households
  • Figure 1: Forecast of U.S. households with net worth between $100,000 and $1 million, 2004-09, March 2005Figure 2: Forecast of U.S. households with net worth between $100,000 and $1 million, 2004-09, April 2008
• The mass affluent is not just one segment
  • Figure 3: Affluent segments, 2002
• Wealth in America
  • Figure 4: Income distribution, 2006Figure 5: Distribution of households, by income, 2003 and 2006
  • Figure 6: The number of households with net worth between $100K and $1 million, 1992, 1995, 1998, and 2001Figure 7: Family net worth, 1995-2004
• Market Drivers
• Age
  • Figure 8: Populations by Generation, 2003-13
  • Figure 9: Population aged 21 or older, 2002-12
  • Figure 10: Median income by age group, 2006
• Continued growth in wealth
  • Figure 11: Average per capita disposable income, 2000-07
  • Figure 12: Household Income, 2005-07
• Stock market wealth
  • Figure 13: Mean value of direct or indirect stock holdings, by percentile of household income, 1989-2004
• Real estate wealth
  • Figure 14: Mean value of primary residence, by percentile of income, 1989-2004
  • Figure 15: Mean value of other residential real estate, by percentile of income, 1989-2004
• Who are the Mass Affluent?
• Profile
  • Figure 16: Profile of America' s rich, 2008
• How much do they earn?
  • Figure 17: Income distribution of mass affluents, by gender and age, February 2008
  • Figure 18: Income distribution of mass affluents, by whether the respondents have children in the household, February 2008
• They use credit cards...
  • Figure 19: Percentage of mass affluent customers who use credit cards, by gender, spring 2007
  • Figure 20: Percentage of mass affluent customers who use credit cards, by age, spring 2007
  • Figure 21: Credit card use among mass affluents, by income, spring 2007
  • Figure 22: Most popular credit cards among mass affluents, by gender, spring 2007
  • Figure 23: Most popular credit cards among mass affluents, by age, spring 2007
  • Figure 24: Most popular credit cards among mass affluents, by income, spring 2007
• ...and debit cards
  • Figure 25: Use of debit cards among mass affluent, by gender, spring 2007
  • Figure 26: Use of debit cards among mass affluent, by age, spring 2007
  • Figure 27: Use of debit cards among mass affluent, by income, spring 2007
• Mass affluent and the Internet
  • Figure 28: Mass affluent with access to Internet via a mobile phone by gender and age, February 2008
  • Figure 29: Mass affluent with access to Internet via a mobile phone by whether the couple is married and has children in the household, February 2008
  • Figure 30: Demographic profile of US MySpace and Facebook users, November 2006 (millions and % of total)
• Mass affluent consumers' influence on retail
• The recent effect of the economy on mass affluents
  • Figure 31: Effect of economy on mass affluents' spending, by gender, February 2008
  • Figure 32: Effect of economy on mass affluents' spending, by gender and age, February 2008
  • Figure 33: Effect of economy on mass affluents' spending, by income, February 2008
  • Figure 34: Effect of economy on mass affluents' spending, by region, February 2008
  • Figure 35: Effect of economy on mass affluents' spending, by whether there are children in the household, February 2008
  • Figure 36: Effect of economy on mass affluents' spending, by marital status and whether there are children in the household, February 2008
  • Figure 37: Effect of economy on mass affluents' financial outlook, by gender, February 2008
  • Figure 38: Effect of economy on mass affluents' financial outlook, by age, February 2008
  • Figure 39: Effect of economy on mass affluents' financial outlook, by gender and age, February 2008
  • Figure 40: Effect of economy on mass affluents' financial outlook, by income, February 2008
  • Figure 41: Effect of economy on mass affluents' financial outlook, by gender and income, February 2008
  • Figure 42: Effect of economy on mass affluents' financial outlook, by marital status and presence of children in the household, February 2008
• Mass Affluents and Investing
• Who has accounts?
  • Figure 43: Ownership of mutual fund accounts by mass affluent, by gender and age, spring 2007
  • Figure 44: Ownership of mutual fund accounts by mass affluent, by income, spring 2007
  • Figure 45: Percentage of investors who invest with different financial institutions, 2005
• What is in their portfolio?
  • Figure 46: Percentage of mass affluent customers with these investment products, April 2007
  • Figure 47: Percentage of mass affluents who have accounts in three most popular firms, spring 2007
• Mass affluents and real estate
  • Figure 48: Distribution of total assets of the mass affluent group, 2005
• Baby Boomers and real estate
• Where do mass affluents get mortgages?
  • Figure 49: Where mass affluents get their first mortgages, by gender and age, spring 2007
• Mass affluents and retirement
  • Figure 50: : Where retirement money will come from, 2007
  • Figure 51: Major financial goals of the mass affluent, by gender, February 2008
  • Figure 52: Major financial goals of the mass affluent, by age, February 2008
  • Figure 53: Major financial goals of the mass affluent, by gender and age, February 2008
  • Figure 54: Major financial goals of the mass affluent, by income, February 2008
  • Figure 55: Major financial goals of the mass affluent, by whether respondent has children, February 2008
• Mass affluents need help with retirement planning
  • Figure 56: Mass affluents who have 401(k) accounts with former employers, by gender and age, February 2008
• Interest in retirement offers banks a huge opportunity
  • Figure 57: Mass affluents whose bank has offered to assist with retirement planning, by gender and age, February 2008
• Mass Affluents and their Banks
• Top banks
• Bank products owned
  • Figure 58: Bank products owned by mass affluent, by age, spring 2007
  • Figure 59: Bank products owned by mass affluent, by age, spring 2007
  • Figure 60: How many banks mass affluents use, by gender and age, February 2008
  • Figure 61: What is important to mass affluents in opening an account, by gender and age, February 2008
  • Figure 62: How mass affluent customers communicate with their bank, by gender, February 2008
  • Figure 63: How mass affluent customers communicate with their bank, by age, February 2008
  • Figure 64: How mass affluent customers communicate with their bank, by gender and age, February 2008
  • Figure 65: How mass affluent customers prefer to complete major transactions with their bank, by gender and age, February 2008
• Competitive Challenges posed by Mass Affluents
• Overview
• Differentiation is key
• What does the mass affluent customer think?
  • Figure 66: Degree of differentiation between financial institutions, by gender, September 2007
  • Figure 67: Degree of differentiation between financial institutions, by age, September 2007
  • Figure 68: Degree of differentiation between financial institutions, by income, September 2007
• Online presence is key, too
• How are Decisions Made--and Who Makes Them?
  • Figure 69: How financial decisions are made, by age and gender, February 2008
  • Figure 70: How financial decisions are made, by income, February 2008
• Mass affluents want advice--but they think they do a good job themselves
  • Figure 71: Percentage of mass affluents who agree with the given statement and believe they are good money managers, by gender, spring 2007
  • Figure 72: How mass affluents feel about making investment decisions, February 2008
  • Figure 73: How mass affluents feel about making investment decisions, February 2008
• Where do they go for advice?
  • Figure 74: Who mass affluent consumers use for financial advice, 2002
• Ethics and Decision-making
  • Figure 75: Investor feels that company ethics are important, by gender, September 2007
  • Figure 76: Investor feels that company ethics are important, by gender, September 2007
  • Figure 77: Investor feels that company ethics are important, by income, September 2007
• Mass Affluents and Insurance
  • Figure 78: Percentage of mass affluents who believe insurance is important, by gender and age, spring 2007
  • Figure 79: Mass affluents' insurance ownership, by gender and age, spring 2007
• Mass Affluents and Loans
  • Figure 80: Percentage of mass affluent respondents that have loans, by gender, spring 2007
  • Figure 81: Percentage of mass affluent respondents that have loans, by age, spring 2007
• Who is Targeting Mass Affluents?
• Charles Schwab
• HSBC
• Citibank
• MasterCard
• Bank of America
• Wells Fargo
• Fifth Third
• Wachovia
• Ameriprise
• Advertising and Promotion
• Print
  • Figure 82: Ameriprise print ad, October 2007
  • Figure 83: Ameriprise print ad, September, 2007
  • Figure 84: HSBC print ad, March 2008
  • Figure 85: HSBC print ad, January 2008
  • Figure 86: Schwab print ad, March 2008
• Direct mail
  • Figure 87: HSBC direct mail ad, March 2008
  • Figure 88: Wachovia direct mail ad, February 2008
  • Figure 89: Wachovia direct mail ad, February 2008
  • Figure 90: Wells Fargo direct mail ad, March 2008
• Email
  • Figure 91: Charles Schwab email ad, October 2007
  • Figure 92: TIAA-CREF email ad, March 2008
  • Figure 93: Charles Schwab email ad, March 2007
  • Figure 94: Wells Fargo email ad, March 2008
• TV commercials
  • Figure 95: American Century television advertisement, 2008
  • Figure 96: Aviva investments funds television advertisement, 2008
  • Figure 97: Charles Schwab television advertisement, 2008
  • Figure 98: Charles Schwab television advertisement, 2008
  • Figure 99: Fidelity Investments television advertisement, 2008
  • Figure 100: Fidelity Investments television advertisement, 2008
  • Figure 101: Fidelity Investments television advertisement, 2008
  • Figure 102: Fidelity Investments television advertisement, 2008
  • Figure 103: Franklin Templeton investments television advertisement, 2008
  • Figure 104: TD Ameritrade IRA retirement television advertisement, 2008
  • Figure 105: Wachovia television advertisement, 2008
• Appendices--Other Useful Consumer Data
  • Figure 106: Most important considerations when opening a financial account, by race and income, February 2008
  • Figure 107: Most important considerations when opening a financial account, by race and age, February 2008
  • Figure 108: Most important considerations when opening a financial account, by race and income, February 2008
  • Figure 109: Income distribution of mass affluents by race and age, February 2008
  • Figure 110: Marital status, by race and age, February 2008
  • Figure 111: Mass affluents who are parents or guardians, by age and race, February 2008
  • Figure 112: Number of people living in household, by race and age, February 2008
  • Figure 113: Major financial goals of the mass affluent, by race, February 2008
  • Figure 114: Credit card use among mass affluent, by age, spring 2007