charles schwab survey of d.c. metro area residents

7/25/2019 Charles Schwab survey of D.C. metro area residents

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The View fromWashington, D.C.:

May 2016

1,000 residents share their perspectiveson life in the Washington, D.C.metropolitan area, the local economy

and personal finances


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Methodology

What

An online study among a sample of the general public wasconducted by Koski Research.

Koski Research is neither affiliated with, nor employed by, CharlesSchwab & Co., Inc.

When The study was fielded March 28thApril 8th, 2016.

Who

1,000 from Washington, D.C. aged 21-75 completed the survey. The sample was drawn from online sample sources. The geographical area of the sample included all the Maryland,

Virginia, and D.C. counties in the Washington, D.C. MetropolitanStatistical Area (MSA). Quotas were set so that the sample is

demographically representative of the Washington, D.C. area andthe data has not been weighted. Note: Unless noted otherwise, Washington, D.C. and the D.C. Area

refer to the Washington, D.C. area as defined above andWashingtonians refers to the residents of this area.

Note: There were few differences between 2015 and 2016;therefore, where significant, these differences are shown in call-out

boxes.2


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The Washington,D.C. Metro AreaEconomy

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Six in ten area residents see the Washington, D.C. economyas better than the U.S. economy as a whole; few say itsworseWashington, D.C. Economy Comparison to U.S. Economy

All Washington, D.C.

Q7 If you were to compare the economy of the Washington, D.C. area to the economy of the United States overall, would you say Washington, D.C.s economy is (Base: AllWashington, D.C. = 1,000)

Better58%

Same35%

Worse7%

4


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11%

11%

39%

39%

Washingtonians are more bullish about their owneconomies than about the U.S. economy

Q6 How do you view the economy? (Base: All Washington, D.C. = 1,000)

13%

28%

36%

23%Becoming moreprosperous

Staying aboutthe same

Becoming less

prosperous

Cannot say

View of the Economy


In the United States

9%

10%

45%

36% Becoming more

prosperous/stayingthe same(NET) = 59%

Becoming moreprosperous/staying

the same(NET) = 81%

In Washington, D.C.In Your Neighborhood

Becoming moreprosperous/staying

the same(NET) = 78%

5

53% in 2015

28% in 2015


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According to Washingtonians, top priorities for the newPresident are balancing the budget, tax reform andunemployment

Q12 In 2017, there will be a new President of the United States. Which of the following is the one economic topic orissuethat the new President should be making the biggestpriority? (Base: All Washington, D.C. = 1,000)

Top Economic Priority for the New President


22%

13%

10%

9%

9%

9%

7%

7%

5%

3%

1%

1%

1%

Balancing the national budget

Tax reform

The unemployment rate

Funding for safety net programs, such as Medicaid and welfare

The minimum wage

Reforming social security

Student loan forgiveness

Cost of higher education

Wall Street regulation or reform

Promoting retirement savings

Immigration/Illegal immigration

Healthcare/Healthcare reform

Federal spending/Cutting waste-entitlements-defense

6

Note: no other response mentioned by more than 1%

17% in 2015

6% in 2015

5% in 2015


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Life in theWashington, D.C.

Metro Area

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13%79%

75%

58%

57%

54%

46%

45%

25%

22%

15%

15%

12%

11%

5%

6%

6%

10%

14%

20%

14%

33%

32%

37%

39%

62%

66%

Washington, D.C. Comparison to Other U.S. Metropolitan Areas

All Washington, D.C.One of the Best

Washingtonians are positive about many aspects of living inWashington, D.C., but costs of living and housing areconsidered high

Q5 When you think about the top large metropolitan areas in the U.S., how do you think the Washington, D.C. area compares on each of the issues listed below? For eachcharacteristic please indicate whether you think Washington, D.C. is One of the Best metropolitan areas or whether it is One of the Worst. (Base: All Washington, D.C. = 1,000)

One of the Worst

Arts and culture

Food and dining

Employment rate

Quality of education

Quality of life

Public transportation

Effectiveness of local politicians

Infrastructure: roads, highways, etc.

Crime rate

Tax rates

Cost of living

16%

19%

36%

33%

32%

34%

41%

42%

46%

48%

46%

26%

23%

Neither One of the Best norOne of the Worst

8

Quality of housing

Cost of housing

29% in 2015

23% in 2015

54% in 201531% in2015

27% in2015

34% in 2015 37% in 2015

29% in 2015


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Washingtonians believe it takes more to be consideredfinancially comfortable or wealthy in Washington, D.C.compared to the rest of the U.S.

Q17 At what level of personal net worth would you say a person in the Washington, D.C. area could be considered financially comfortable?Q18 At what level of personal net worth would you say a person in the Washington, D.C. area could be considered wealthy?Q18a At what level of personal net worth would you say a person living in the rest of the United States could be considered financially comfortable?Q18b At what level of personal net worth would you say a person living in the rest of the United States could be considered wealthy? (Base: All Washington, D.C. = 1,000)

Net Worth Needed to be Financially ComfortableAll Washington, D.C.

Net Worth Needed to be WealthyAll Washington, D.C.

$720K $620K

$220K $170K

In Washington, D.C. In the U.S. In Washington, D.C. In the U.S.

$2.7M

$1.8M

$1M$690K

In Washington, D.C. In the U.S. In Washington, D.C. In the U.S.

9

$890K in 2015

MedianAverage

MedianAverage


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If money were no object, about 1 in 5 Washington arearesidents would live in Old Town Alexandria; expense is theprimary barrier

Q8 If money were no object, where in the Washington, D.C. area would you like to live? (Base: All Washington, D.C. = 1,000)Q9 What is preventing you from living in (preferred place)? (Base: All Washington, D.C. = 1,000)

Preferred Neighborhood of

ResidenceAll Washington, D.C.

19%

11%

7%

7%

7%

6%

6%

3%

3%

2%

2%

2%

2%

22%

Old Town Alexandria

Bethesda

Capitol Hill

Chevy Chase

Rockville

DuPont Circle

Crystal City

Clarendon-Courthouse

Ballston

Eastern Market

Rosslyn

Foggy Bottom

Georgetown

Other

65%

20%

19%

15%

5%

5%

6%

14%

It's too expensive

The real estate options do not meetmy needs

It's too far from work

It's too far away from familymembers / friends

The schools in the area are not highquality

There's too much crime in the area

Other

Nothing - I currently live there

Barriers to Living in Preferred

NeighborhoodAll Washington, D.C.

10


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10%

28%

62%Own home

Rent home

Have otherarrangement

45%

38%

37%

23%

19%

19%

4%

9%

Im not making enough money to savefor the purchase of a home

I cant afford a home in theneighborhood I want to live in

Im still paying off debt

Im not interested in purchasing ahome in the near-term

Im currently saving for other thingsbesides a home

It is more financially attractive to rentthan own a home in D.C.

Other

Nothing would prevent me frompurchasing a home

Most Washingtonians are homeowners; non-owners sayinadequate income, cost of homes in their desiredneighborhood or debt are barriers to home ownership

Q28 Do you currently... (Base: All Washington, D.C. = 1,000)Q29 Which of the following would prevent you from purchasing a home? (Base: Those who dont own = 383)

Factors Preventing Home Ownership

Among those who dont own

Home Ownership


11

47% in 2015


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Want to stay in sameneighborhood in

Washington, D.C. area

Want to move to adifferent neighborhood in

Washington, D.C. area

Want to move outside ofWashington, D.C. area

Undecided

Don't plan to retire

3%

In retirement, one-quarter of employed Washingtoniansplan to stay in their current neighborhoods; one-quarterwant to move out of the areaPlanned Retirement Residence

Among employed Washington, D.C.

Q3 When you think about retirement, what are your plans for where you will live? (Base: Employed Washington, D.C. = 674)

25%

8%

26%

38%

12


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79%

78%

77%

72%

67%

64%

49%

42%

40%

31%

21%

22%

23%

28%

33%

36%

51%

58%

60%

69%

Im happy with my quality of life in Washington, D.C.

Children can get a good education in the public schools in my area

There are plenty of job opportunities in the D.C. area

I feel good about the property values in my neighborhood

Crime is hurting the economy in the Washington, D.C. area

The Washington, D.C. area has high quality public transportation

Tax rates in my area are reasonable

Overall cost of living in my area is reasonable

Politicians do a good job making the local economy stronger

I like Washington, D.C. more during an election year

Agree Disagree

Three-fourths or more agree that quality of life, educationand jobs are key strengths of the area; but most dislikebeing there during an election yearAgreement with Statements About Washington, D.C.


Q13 Please indicate your level of agreement or disagreement with each of the statements below. (Base: All Washington, D.C. = 1,000)

13

57% in 2015

70% in 2015

30% in 2015

45% in 2015


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44%

42%

32%

30%

23%

23%

21%

20%

19%

13%

11%

37%

39%

38%

38%

42%

42%

30%

38%

40%

33%

22%

15%

14%

22%

22%

26%

26%

29%

27%

29%

35%

30%

3%

4%

5%

6%

6%

6%

13%

10%

9%

14%

20%

1%

1%

3%

4%

3%

3%

8%

5%

3%

5%

17%

That welcomes diversity

For young professionals

Where I can achieve my career ambitions

Where a child can receive a good education

For innovation

That is business friendly for large companies located here

Where I can make a difference on national policies

To raise a family

For entrepreneurs - those seeking to start and own a business inthe area

For the middle class

To spend your retirement years

A B C D F

Washington, D.C. gets high marks as a place that welcomesdiversity and for young people; not so much for the middleclass or retireesHow Residents Grade Washington, D.C.


Q16 How would you grade the greater Washington, D.C. area on each of the following? (Base: All Washington, D.C. = 1,000)

Washington, D.C. is a placeExcellent Fail

Grade

A/B (Net)

14

81%

81%

70%

68%

65%

65%

51%

58%

59%

46%

33%


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76%

67%

65%

60%

56%

54%

54%

40%

40%

37%

35%

34%

26%

24%

16%

15%

14%

6%

Tourist destination

The political capital of the world

Theaters, operas, museums

Lobbyists

Large number of military personnel

A place that welcomes diversity

Place for good job and career opportunities

Poorly equipped to handle extreme weather

Large homeless population

Diehard sports fans

Patriotism

Growing economy

Poor infrastructure

A tech hub

Supports small businesses

High quality of life at a reasonable cost

Committed to environment by living green

Affordable real estate

Residents of Washington, D.C. more often than others seethe area as welcoming diversity, offering job and careeropportunities and a growing economy; but less on patriotism

Q32a The Washington, D.C. Area is well known for a variety of reasons. Which of the following do you believe describe the D.C. Area?

Q32b People from other places also have impressions of the Washington, D.C. Area. Which of the following do you think people from other places believe are descriptive of the D.C.Area? (Base: All Washington, D.C. = 1,000)

15

75%

68%

57%

59%

50%

36%

40%

38%

37%

28%

45%

23%

23%

16%

11%

13%

8%

7%

How Washington is Seen by Washingtonians and Others

All Washington, D.C. How WashingtoniansSee Washington

How Washingtonians Think OthersSee Washington

NetDifference

+1

-1

+8

+1

+6

+18

+14

+2

+3

+9

-10

+11

+3

+8

+5

+2

+6

-1

vs.


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PersonalFinances in the

Washington, D.C.Metro Area

16

M h h lf f W hi i l l i


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40%

7%

5%

4%

1%

15%

8%

4%

3%

3%

5%

1%

2%

*

1%

Local area cost of living

Local area housing market

Local area employment rate

Local area tax rates

Local political environment

U.S. economic outlook

U.S. stock market volatility

Outcome of the 2016 U.S. presidential election

U.S. unemployment rate

U.S. interest rate environment

Global economic outlook

Global political instability

Amount of money/Personal finances/Income

My personal-family job stability/Job(s) (Unspecified)

Other mentions

More than half of Washingtonians say local issues(especially cost of living) have the greatest impact on theirpersonal financial decisionsImpact on Making Personal Financial Decisions


Q10 Which of the following factors or events have the greatest impact on how you make your personal financial decisions? (Base: All Washington, D.C. = 1,000)

17

Local events(net) = 57%

U.S. events(net) = 33%

Global events(net) = 6%

* = < 0.5%

C fid i hi i fi i l l i hi h h


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7%

21%

47%

25% Very confident

Somewhatconfident

Not very confident

Not at all confident

Confidence in achieving financial goals is high; however, aplurality says living in Washington, D.C. hurts their ability toreach their financial goalsConfidence in Ability to Achieve

Financial GoalsAll Washington, D.C.

Q20 How confident do you feel that you will be able to reach your financial goals?

Q21 Would you say that living in Washington, D.C. helps or hurts your ability to reach your financial goals? (Base: All Washington, D.C. = 1,000)

18

Effect of Living in Washington, D.C. on

Reaching Financial GoalsAll Washington, D.C.

11%

21%

44%

24%Living inWashington, D.C.helps

Living inWashington, D.C.hurts

Doesn't affect myability to reach my

financial goals

Uncertain

36% among those who usean FA vs. 21% among

those who dont

Confident(net)=72%

NotConfident(net)=28%

W hi gt i th t h fi i ll


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Tech savvy43%

Financially

savvy35%

Politicallysavvy22%

Washingtonians say they are more tech savvy or financiallysavvy than politically savvy, and they tend to be somewhatmore savers than investors

Q18c Would you consider yourself more financially savvy, politically savvy or tech savvy?Q19 How would you describe your approach to building wealth? (Base: All Washington, D.C. = 1,000)

Financially Savvy vs. Tech Savvy vs.

Politically SavvyAll Washington, D.C.


19

Washingtonians Approach to

Building WealthAll Washington, D.C.

22%

15%

39%

24%


More ofa saver

More ofan investor

Committedto both

Notbuilding wealth

right now

I t f l i g f th f t i t


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In terms of planning for the future, seven in tenWashingtonians have a financial plan, but only one in fourhave it in writing

Q23 Do you currently have a financial plan? (Base: All Washington, D.C. = 1,000)

Have a plan inwriting24%

Have a planbut not written

47%

Don't have aplan29%

Financial Planning


Have a financialplan (NET) = 71%

20

Washingtonians are saving primarily for retirement and


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62%

50%

29%

24%

22%

20%

7%

1%

22%

7%

Retirement

Emergency funds

Vacation funds

Purchasing a home

College costs for my children

Medical expenses for family members

Starting my own business

Other mentions

I'm saving but I don't have a specific goal

I am not saving for anything currently

Washingtonians are saving primarily for retirement andemergencies, but the areas cost of living and paying offdebt are the top barriersTop Three Saving/Investing Priorities


Q26 Which of the following are your top three saving and investing priorities?Q27 Which of the following obstacles prevent you from saving or investing toward your financial goals? (Base: All Washington, D.C. = 1,000)

Obstacles Preventing Saving/Investing


46%

34%

17%

14%

11%

10%

9%

7%

2%

5%

23%

Cost of living in Washington, D.C. istoo high

I'm paying off other debt

I'm still paying off my student loans

I am not doing a good job budgetingmy money

I find the process of investingoverwhelming

I'm paying for my children to go toschool

Getting financial advice is too costly

I do not know how to get the financialadvice I need

Underemployed/Unemployed/Notworking

Other mentions

Nothing is preventing me from savingfor my financial goals

21

57% in 2015

6% in 2015

Most Washingtonians say charitable giving plays a small


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25%

46%

18%

11%Charitable giving plays a large role Its part of my financial plan becauseI like to support causes that are important to me and because I can lowermy tax bill

Charitable giving plays a medium-sized role I set aside a certainamount of money each year for charitable giving, but don't really thinkabout tax benefits

Charitable giving plays a small role I contribute if I can, but don't reallyplan ahead for it

Charitable giving plays no role I don't donate much

Most Washingtonians say charitable giving plays a smallrole or no role in their financial planning

Q31 How big of a role does charitable giving play in your financial planning? (Base: All Washington, D.C. = 1,000)

40%

22

Role of Charitable Giving in Financial Planning



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SurveyDemographics

23

D g hi


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DemographicsAll Washington, D.C.

(n=1,000)

Gender

Male 49%

Female 51%

Generation

Millennials (21-33) 27%

Gen X (34-49) 29%

Boomers (50-68) 36%

Matures (Over 68) 9%

Mean age 46

ChildrenHave children (Net) 59%

Under age 18 26%

Over age 18 29%

Both over and under age 18 4%

No children 41%

Racial Background

White/Caucasian 71%African American/Black 16%

Asian 8%

Hispanic or Latino 4%

Other 3%

Prefer not to answer 3%

All Washington,D.C.

(n=1,000)

Employment Status

Employed (Net) 67%Full-time 54%

Part-time 13%

Unemployed, looking for work 6%

Homemaker or student, notlooking for work

10%

Retired, semi-retired 17%Political Orientation

Republican 20%

Democrat 46%

Independent 24%

None of these 5%

Prefer not to say 5%

24

Demographics


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Demographics

All Washington, D.C.(n=1,000)

Total Assets


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charles schwab survey of d.c. metro area residents

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