Financial Advisors Bump Up Savings Behaviors Of Military Families, First Command Reports
First Command Financial Behaviors Index® reveals that servicemembers who work with a financial advisor save an average of $2,000 more per month than those without an advisor
FORT WORTH, Texas--(BUSINESS WIRE)--At a time when many military families are intensifying their savings habits, those who work with a financial advisor are putting away considerably more dollars than their do-it-yourself colleagues, according to new survey.
“All told, servicemembers who work with a financial advisor are saving an average of $2,000 more per month than those who go it alone”
The First Command Financial Behaviors Index® reveals that middle-class military families (senior NCOs and commissioned officers in pay grades E-6 and above with household incomes of at least $50,000) who work with a financial advisor are putting almost twice as much money into short-term savings as those who don’t work with an advisor. During the fourth quarter, their average monthly rate totaled $1,228. In contrast, those without an advisor averaged just $683.
The impact of working with a financial advisor is particularly evident in long-term savings behaviors. The fourth quarter survey results reveal that military families who work with a financial advisor put an average of $1,133 per month into long-term savings. That’s about four times the $278 per month socked away by those who don’t work with an advisor. And the average monthly retirement savings rate was $1,657 for those with an advisor versus $1,055 for those without.
“All told, servicemembers who work with a financial advisor are saving an average of $2,000 more per month than those who go it alone,” said Scott Spiker, CEO of First Command. “This dramatic savings gap highlights the positive influence a trusted financial advisor can have on the money habits and long-term financial security of our men and women in uniform. These financial professionals are helping to heighten fiscal discipline in a population that has become increasingly concerned about the impact that sequestration and defense downsizing may exert on military pay, benefits and career viability. Bumping up savings behaviors is an ideal way to help these families get their household finances squared away in preparation for an uncertain fiscal future.”
The savings trend is expected to continue for at least the near future. Most survey respondents indicated that they do not foresee making a change in their savings behaviors in the coming months. These and other financial intentions, attitudes and behaviors that are tracked in the monthly surveys helped the quarterly Index score hold steady in the fourth quarter to close out the year at 118, virtually unchanged from 117 in the third quarter and a high for the year.
“Although military families continue to encounter challenges, they are steadfast in their proactive stance,” Spiker said. “And it is especially worth noting that those who work with financial advisors are displaying many of the key behaviors we associate with financial security and feeling confident in the future.”
About the First Command Financial Behaviors Index®
Compiled by Sentient Decision Science, Inc., the First Command Financial Behaviors Index® assesses trends among the American public’s financial behaviors, attitudes and intentions through a monthly survey of approximately 530 U.S. consumers aged 25 to 70 with annual household incomes of at least $50,000. Results are reported quarterly. The margin of error is +/- 4.3 percent with a 95 percent level of confidence. www.firstcommand.com/research
About Sentient Decision Science, Inc.
Sentient Decision Science was commissioned by First Command to compile the Financial Behaviors Index®. SDS is a behavioral science and consumer psychology consulting firm with special vertical expertise within the financial services industry. SDS specializes in advanced research methods and statistical analysis of behavioral and attitudinal data.
About First Command
First Command Financial Services and its subsidiaries, including First Command Bank and First Command Financial Planning, assist American families in their efforts to build wealth, reduce debt and pursue their lifetime financial goals and dreams—focusing on consumer behavior as the first and most powerful determinant of results. Through knowledgeable advice and coaching of the financial behaviors conducive to success, First Command Financial Advisors have built trustworthy, lasting relationships with hundreds of thousands of client families since 1958.
First Command Financial Services, Inc., is the parent of First Command Financial Planning, Inc. (Member SIPC, FINRA), First Command Insurance Services, Inc. and First Command Bank. Financial planning services and investment products, including securities, are offered by First Command Financial Planning, Inc. Insurance products and services are offered by First Command Insurance Services, Inc., in all states except Montana, where as required by law, insurance products and services are offered by First Command Financial Services, Inc. (a separate Montana domestic corporation). Banking products and services are offered by First Command Bank. In certain states, as required by law, First Command Insurance Services, Inc. does business as a separate domestic corporation. Securities products are not FDIC insured, have no bank guarantee and may lose value. A financial plan, by itself, cannot assure that retirement or other financial goals will be met. First Command Educational Foundation is a 501(c)(3) public charity. It is not affiliated with First Command Financial Services, Inc., or any of its affiliated entities.