News

New survey finds majority looking to invest but lack awareness of options

June 12, 2019

U.S. Bancorp Investments rolls out new survey and enhances features of two platforms.

U.S. Bancorp Investments today shared the results of a recent national survey** of consumers that examined their investing perceptions with results showing a need for greater awareness of accessible investing options. Among key findings, more than half of respondents (54 percent) indicated they wanted to invest or make changes to their investments but didn’t know how, and nearly three out of four (72%) replied that they didn’t believe they had the time or the money to spend on professional advice. 

“It’s critical that we close that perceived advice gap. From investors who are just beginning to experienced investors, we want everyone to have access to the online investing tools they need to pursue their financial goals while also saving valuable time and money,” said Mark Jordahl, president of U.S. Bank Wealth Management. 

In order to provide customers with more accessibility to investing advice and increased transparency in investing fees, U.S. Bancorp Investments has announced several changes to its online investing products, including a lowered minimum investment for Automated Investor, its digital investing product, to $5,000. In addition, the management fee has been reduced by half – to 0.24% annually – which equals $0.20 per $1,000 invested per month. 

“Investment advice and options should be easy and convenient. For that reason, our team at U.S. Bancorp Investments is committed to delivering cost-effective, high-quality financial advice and investments that help meet the needs of customers,” said Jordahl. 

Automated Investor makes professional advice accessible for more people

“Close to half of the survey respondents believed they did not have enough assets to seek professional advice,” said Gailyn Johnson, chief operating officer for U.S Bank Wealth Management. “At the same time, 72 percent are not even aware of digital investing products. That’s a staggering statistic because options like Automated Investor make high-quality financial advice more accessible to more customers – not just the affluent.”

In addition to overcoming the perceived barrier of time and access, customers are looking for options to connect their investments to aspirational goals and life moments. Automated Investor customers now have the option to save for multiple near- and long-term goals –in addition to saving for retirement – such as purchasing a home, or just general investing with a goal of building wealth.

Once a goal has been selected and the profile assessment completed, Automated Investor helps take the guesswork out of online investing by automatically adjusting the customer’s portfolio as market conditions change. Portfolios are constructed by the investment professionals in the U.S. Bank Asset Management Group to help maintain a balanced mix of investments to help keep a portfolio on track toward achieving a specific goal.

“As easy as it is to use Automated Investor, even those who have grown up with technology want to talk to someone where investing is concerned. In our survey we found that 83% of millennials want human help when using online services that manage their investments for them,” continued Johnson. “We want to allow our clients to engage with us on their terms, so we’ve made it a priority to deliver digital tools backed by live human support.”

Digital products for experienced investors

U.S. Bancorp Investments offers another digital investing solution for do-it-yourself investors, known as Self-Directed Brokerage. Customers who have the knowledge, desire and time to customize their own investments, can invest and trade with a self-directed brokerage account or start saving for retirement with a self-directed IRA. Using online trading and market research tools, customers can invest and trade stocks, options, mutual funds, Exchange Traded Funds (ETFs) and more. A self-directed account gives customers access to research and insights. As part of the updated offering and commitment to providing affordable investment solutions, U.S. Bancorp Investments is now offering 100 free trades per year for self-directed customers who have a Platinum® or Gold® Checking Package account with our affiliate U.S. Bank. ***

For information on self-directed brokerage accounts or to get started with Automated Investor, visit usbank.com/automatedinvesting

Footnotes

*Advisory fee is $0.20 per month for every $1,000 with a minimum investment of $5,000. This is equivalent to an annual advisory fee of 0.24%, billed quarterly.

**The U.S. Bank Mobile Money Management Survey was conducted online by Wakefield Research among 1,000 nationally representative U.S. adults between Feb. 27 and March 5, 2019. The margin of error was +/- 3.1%.

***Offer is for 100 free trades per calendar year (January 1 – December 31), with a U.S. Bancorp Investments Self-Directed Brokerage Account with e-delivery documents and have a U.S. Bank Platinum® Checking Package or U.S. Bank Gold®.

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