Report: Financial planning = happiness

Pulling out some highlights of the Household Financial Planning Survey:

  • people who plan feel more confident about their financial decision‐making, manage to save more money, and feel better about their progress
  • only about a third (31%) of decision‐makers today report having ever put together a comprehensive financial plan. And just 35 percent of decision‐makers report having a plan in place to save for emergencies
  • Fed: devastating effects of financial crisis on the middle class: The median family… had a net worth of $77,300 in 2010 compared with $126,400 in 2007… wiping out nearly two decades of economic gains.
  • the crash of housing prices has been the single biggest factor that has reduced people’s wealth
  • only a third (34%) believes they will be able to retire [at 65, down from 50% fifteen years ago]. More than a quarter (27%) think they will not be able to retire before age 70, if ever.
  • 55% say “it’s hard for me to know who to trust for financial advice.”; 52% say “to me investing seems complicated.”; 55% say “I’m worried about losing my money if I invest it,” a significant increase from 1997 (45%)
  • half of household decision‐makers believe they “just don’t earn enough money to save regularly.”
  • American families today are less likely to be saving for their financial goals and taking steps to keep their family financially prepared.
  • The only area where families are more prone to save is toward a major purchase, like a new car, vacation, or home improvement project.
  • two‐thirds (65%) of decision‐makers say they follow a plan for at least one of their savings goals.
  • Forthoseathigherincomelevels,plannersputmoreoftheir income into savings than non‐planners and report having built greater wealth.
  • Among those in the $25,000‐$49,999 income category, 46 percent of those with a plan say they usually pay their credit card bill in full each month, compared with 26 percent of non‐planners.