Cogent Thoughts

Affluence And Retirement: Is Billion The New Million?

July 17, 2008 – Kelli Grimes
What would you do if you had a million dollars? We've all been asked that question before, and I'm willing to bet part of your answer included "quit my job." Given today's economic climate, we might have to take a step back and wonder, is a million enough for retirement? Conventional wisdom dictates that high net-worth, affluent individuals, especially millionaires, should have more than enough to comfortably retire when and how they want to. But money isn't everything, and that statement couldn't be truer than in today's bear market. Cogent's recent study of high net-worth investors* (HNWIs) reveals that even the affluent are shaken. However, there are distinct similarities and differences between individuals at the low, mid, and high levels of the affluence spectrum. As a result of the market's downturn, 20% of investors in the $1M+ asset class have become less confident that they will be able to retire when they ...

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Beyond Demographics: Maximizing Marketing Efforts Using Attitudinal And Behavioral Segmentation

June 20, 2008 – Debbie Cabanday
Retirees currently represent a sizeable segment of the U.S. population. As the baby boomers continue their march toward retirement, the population will get even larger.  Firms striving to understand the needs of retirees and near-retirees often focus in on specific groups within the population.  They typically apply this focus in a number of ways, examining groups based on their age, gender, asset-level, or marital status.  While in some ways this may be insightful, the utility of this approach to grouping is limited.  For example, let's take a closer look at two retirees. Mary and Janet are best friends who have each saved one million dollars for retirement.  They're both 75 years old, widowed, and healthy.  Both rely on their retirement savings to make ends meet.  Most firms stop here and match a financial product that would work well for this "type" of retiree, given their demographic profile and asset level. But, ...

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What If You Threw A Retirement Party. . .And Nobody Came?

June 13, 2008 – Alan White
While investors and their financial advisors have long grappled with the myriad challenges associated with successfully migrating from the accumulation side of the retirement planning continuum to implementing strategies that provide ongoing and dependable in-retirement income, the wealth management industry seems convinced that both audiences are finally ready to act. And maybe they are. After all, the first wave of baby boomers is beginning to reach the traditional retirement age of 65. At the same time, Americans exhibit less confidence than ever in the Social Security system. Finally, one would be hard pressed to find a single retiree, at almost any income level, that isn’t afraid of what one serious health-related incident could mean for their finances, and by extension, their lifestyle in retirement.

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The Five Reasons Financial Services Firms Need A Social Media Strategy

June 13, 2008 – Eric Dolan
The writing is on the wall. An upsurge in social media participation and increasing accessibility to social media tools is signaling a revolution in the investor decision-making process. So how are investors engaged in, and impacted by, social media? What do you need to do about it? Cogent Research recently surveyed 1,000 US consumers and 1,056 investors with at least $100,000 in investable assets who are using social media for personal finance and investing to find out exactly what the buzz is all about. What we learned was compelling and insightful, and also, for the industry, a little nerve-racking. Social media technologies are giving investors tools that not only allow them to validate, but to also potentially changes their investment decisions. Access to and networks of like-minded investors represent a new variable in the investment decision-making equation. To help you effectively navigate ...

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With A Little Help From My Friends: Socialpicks.com presents a unique opportunity for self-directed, tech-savvy investors

June 4, 2008 – Eric Dolan
Glued to CNBC watching Cramer? Pouring through The Wall Street Journal? Wondering why you can see what people think of the dishwasher you're planning to buy at sears.com, but not what others think about the mutual fund where you‟re going to park half of your child‟s college savings? If only you could get some candid advice, or, better yet, could examine the moves of an investing maven. Now you can.

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Social Media vs. Advisors (round 1)

June 2, 2008 – Eric Dolan
A complete stranger whom I've never met told me the other day that my retirement plan was not appropriate for my investment objectives. I met this "stranger" on wesabe.com, a site that describes itself as: “An online community of real people just like you, with real financial goals and concerns." Advice from other people like me? That sounds comforting. People like me don't have an agenda when it comes to making the right investment decisions. Are they saying the same things as my financial advisor, whom I pay for help with my real financial goals and concerns?

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The Role Of Emotions In Consumer Choice

June 2, 2008 – Debbie Cabanday
Marketers are always looking for the best way to position their product or brand so it will be chosen over the competition. But what actually drives a consumer to choose one brand over another? In market research we are always trying to discover the nature of consumer choice. And while we continually refine how we measure consumer choice, most methods employed to date typically fall short of answering all the "whys?" Faced with more product choices than ever before, and a staggering amount of information from multiple media, how do consumers process all this information and make decisions? We believe consumers are relying more and more heavily on gut instinct and their emotions to make their decisions.

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Retirement Assets Left In Employer Plans: It’s A Big Opportunity

June 1, 2008 – Michelle Kingdon
Take it. Leave it. Roll it. These are the options employees have regarding their employer-sponsored retirement plan (ESRP) assets when they leave one company for another. Each option has consequences, and making the wrong choice could have significant impact on retirement savings goals. ESRP assets typically account for the greatest percentage of one’s retirement savings. On average, affluent Americans have $260,000 invested in a former ESRP, according to the 2007 Investor Brandscape study of 4,000 affluent Americans by Cogent Research, Cambridge, Mass. This represents 28% of their total investable assets, according to the study.

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