E * TRADE Study Finds Young Investors Feeling Financially Ready and Ready to Get Through This Holiday Season as Pandemic Fears Mitigate | Business

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ARLINGTON, Va .– (BUSINESS WIRE) – November 22, 2021–

E * TRADE Financial Holdings, LLC today announced the results of the latest wave of StreetWise, the E * TRADE quarterly tracking study of experienced investors. The results suggest that young investors have confidence in their finances and feel ready to spend the holiday season:

  • Young investors are ready to get into holiday shopping. The majority of investors under 34 (93%) said they felt financially ready for the holiday season. And they feel ready despite growing inflation concerns – 63% said they were worried about inflation, up 9 percentage points from last quarter.
  • Although younger investors are more likely to pull out of an investment portfolio to fund their vacation spending. As the market hits record highs, nearly three in four (74%) of Gen Z and Gen Y investors note that they will take more money out of their investment portfolios to fund the vacations.
  • But the vast majority do not use retirement savings. Among the reasons young investors withdrew from a retirement account prematurely, vacation spending ranked last (10%). Paying for a medical emergency (26%) and financing a major purchase (23%) were at the top of the list.

“After the incredible run in the market, it’s understandable that investors are taking profits to fund vacation spending,” said Mike Loewengart, managing director of investment strategy at E * TRADE Financial. “But keep in mind that if you pull too fast on an investment account, you may be missing out on upside potential. It is essential to stay committed to your long-term goals and your initial investment strategy. Think of your savings and investments as separate entities. Vacation spending happens about once a year, so saving a bit more can help ease the burden at the end of the year.

Mr. Loewengart offered additional advice to young investors looking to save and invest:

  • Stay diverse. A balanced portfolio can help investors weather market fluctuations, and while this strong bull market has pushed portfolios higher, it pays to be prepared. If you are subscribing from an investment account, pay attention to your portfolio allocations. Selling too much of a security can upset the balance of the portfolio you have built up to align it with your goals .
  • Consider harvesting tax losses. If you plan to withdraw funds from an investment account, consider selling underperforming assets to offset capital gains, a strategy known as tax loss recovery. This can help reduce taxable income and put you in a better position at tax time.
  • Preserve emergency savings. Life is full of surprises, but it is almost certain that major expenses will arise. Vacation expenses should not necessarily fall under the category of emergencies. Maintaining three to six months of living expenses is a solid goal and keep in mind that it should only be used for real emergencies like the loss of a job or a loved one.

E * TRADE aims to strengthen the financial independence of traders and investors through a powerful digital offer and professional support. To learn more about E * TRADE’s trading and investment platforms and tools, visit ettrade.com.

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

This wave of the survey was conducted October 8-16, 2021 with an online US sample of 901 active self-directed investors who manage at least $ 10,000 in an online brokerage account. The survey has a margin of error of ± 3.20 percent at the 95 percent confidence level. It was set up and administered by Dynata. The panel is divided into active thirds (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 even distribution across online brokers, geographic regions and age groups. The

About E * TRADE Financial Holdings, LLC and Important Notices

E * TRADE Financial Holdings, LLC and its subsidiaries provide financial services, including brokerage and banking products and services to retail clients. Securities products and services are offered by E * TRADE Securities LLC (SIPC member). Commodity futures contracts and options on futures products and services are offered by E * TRADE Futures LLC (NFA member). Managed account solutions are offered by E * TRADE Capital Management, LLC, a registered investment advisor. Banking products and services offered by E * TRADE Bank and E * TRADE Savings Bank, two federal savings banks and members of the FDIC. More information is available at www.etrade.com.

The information provided in this document is for general information purposes only and should not be construed as investment advice. Past performance is no guarantee of future results.

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

© 2021 E * TRADE Financial Holdings, LLC, a Morgan Stanley company. All rights reserved.

E * TRADE Financial calls on Dynata to program, set up and compile the study. Dynata provides digital research data and has locations in the Americas, Europe, the Middle East and Asia-Pacific. For more information, please visit www.dynata.com.

How financially prepared do you feel for this year’s holiday season?

Age

Q4’21

Top 2 Box

93%

Very prepared

47%

A little prepared

46%

A little poorly prepared

6%

Not at all prepared

1%

How concerned are you about inflation?

Age

Q3’21

Q4’21

Top 2 Box

54%

63%

Extremely worried

23%

33%

Very concerned

31%

30%

Somewhat worried

43%

33%

Not at all concerned

3%

4%

Please complete the following statements with one of the choices below: ** I typically withdraw —————— from my investment portfolio to help fund vacations. **

Age

Q4’21

Top 2 Box

74%

Much more

39%

A bit more

35%

A little less

13%

Much less

13%

Have you ever withdrawn money from an IRA or 401 (k) before the age of 59.5, and if so, for what?

Age

Q4’21

Yes (net)

64%

Yes, to pay for a medical emergency

26%

Yes, to make a big purchase

23%

Yes, to pay for studies

21%

Yeah, just spend it on me or my family

18%

Yes, because I became unemployed

15%

Yes, to spend on vacation

14%

Yes, for vacation expenses

ten%

Yes, other

1%

Gen Z and Millennials (young investors) are defined as 18-34 years old

CONTACT: E * TRADE Media Relations

KEYWORD: UNITED STATES NORTH AMERICA NEW YORK

INDUSTRY KEYWORD: FINANCING OF PROFESSIONAL BANKING SERVICES

SOURCE: E * TRADE Financial Holdings, LLC

Copyright Business Wire 2021.

PUB: 11/22/2021 4:05 PM / DISC: 11/22/2021 4:06 PM

Copyright Business Wire 2021.

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