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Stock News Bot Date: September 6, 2006 02:00:00 AM
AGE News A.G. Edwards Announces Results of 2006 ''Nest Egg Index'' Which Ranks the Nation's Best-Saving Cities, States; Los Alamos, N.M., Tops This Year's More Comprehensive List
ST. LOUIS--(BUSINESS WIRE)--Sept. 6, 2006--A.G. Edwards (NYSE:AGE) today released its second annual "Nest Egg Index," which ranks America's 500 top-performing communities and the 50 states based on their residents' personal savings and investing behavior. By measuring a dozen statistical factors -- including participation in retirement savings plans, personal debt levels and home ownership -- the Nest Egg Index shows the geographic regions where people are succeeding and where they face the greatest difficulty in building and nurturing their nest eggs.
Earning the top spot in the 2006 A.G. Edwards Nest Egg Index is Los Alamos, N.M., with a rating of 134.31 (indexed to a national average of 100). Ranking No. 2 is Connecticut's Bridgeport-Stamford-Norwalk with a 126.20 rating. San Jose, Calif., last year's top-ranked market, placed third with a rating of 125.93.
The communities rounding out the top 10 of the 2006 A.G. Edwards Nest Egg Index are:
New to this year's A.G. Edwards Nest Egg Index is the addition of smaller micropolitan statistical areas, defined as areas with populations of 10,000 to 50,000, allowing A.G. Edwards to study a broader assortment of communities -- 934 -- and rank the top 500. In total, the communities considered for this year's expanded Nest Egg Index account for more than 90 percent of America's population and encompass markets from the southern tip of Florida to the far reaches of Alaska.
"This year's Nest Egg Index allows us to take an expanded look at American communities," said Robert L. Bagby, chairman and chief executive officer of A.G. Edwards. "We have nearly tripled the number of markets we studied and are able to get a more comprehensive assessment of the savings and investing habits of communities -- large and small -- across the country."
According to this year's findings, communities that ranked highly in the A.G. Edwards Nest Egg Index enjoy strong housing markets and show a high propensity towards saving and investing, particularly in retirement vehicles such as 401(k) or pension plans. And though these top-performing markets tend to show higher costs of living, residents still manage to keep their debt levels in check.
Despite having a population of just 18,500, top-ranked Los Alamos surpassed all other communities in household income and net worth. The city also placed second among all cities reviewed on 401(k), pension and other retirement plans penetration. Thanks in large part to the presence of employers such as the Los Alamos National Laboratory, 68 percent of workers in the area hold managerial or professional positions such as scientists, engineers, lawyers and doctors, the highest concentration of such top-level jobs in the nation, according to a recent study by American City Business Journals.
"Although many people associate the presence of wealth with the economic opportunities often available in big cities, it is striking that three out of the 10 top-performing communities were micropolitan areas," said A.G. Edwards Financial Planning Specialist Sophie Beckmann, CFP(R), CPA. "We found that while external factors such as economic and employment situations may influence an area's ranking, building a healthy Nest Egg really comes down to solid saving and investing habits, personal priorities and discipline."
Of the 500 communities in the 2006 A.G. Edwards Nest Egg Index, 259 are classified as micropolitan and 241 are metropolitan areas according to the U.S. Census Bureau. In comparison, the 2005 Nest Egg Index looked at 318 metropolitan areas and ranked the top 200.
For a complete list of rankings by community, state, metropolitan area only and micropolitan area only, visit nesteggindex.com.
A Stately Look at Saving and Investing
Among the states, New Jersey once again ranked No. 1 with a Nest Egg Index reading of 114.55, up slightly from last year's rating of 114.35. The other states in the top five of the 2006 A.G. Edwards Nest Egg Index are Connecticut (114.37, up from 113.98 in 2005); Minnesota (113.46, down from 113.70); Maryland (112.28, up from 111.40); and Massachusetts (111.77, even with last year).
The biggest mover among the states is Hawaii, which rose in the rankings to No. 13 from No. 21 in 2005, due in large part to a sharp increase in housing value. Other big gainers include California, which moved up to No. 27 from No. 32, and Rhode Island, which came in at No. 18, up from No. 22 place last year.
"The Midwest and Northeast regions continue to perform well in the Nest Egg Index," notes Beckmann. "Although Western regions have shown some very real improvement over last year, states on the Eastern seaboard and in the heartland are still the home of America's best savers."
State-by-State Look at Communities
In the 2006 Nest Egg Index, 46 states had markets that fell within the top 500 communities, with only Arkansas, Louisiana, Mississippi and Oklahoma unrepresented. In addition, 30 states, as well as Washington, D.C., had communities that ranked in the top 100 markets
Ohio had the most communities making the top 500 list at 38, followed by Indiana (36), Pennsylvania (30), Michigan (29), Illinois (25), Wisconsin (25), Iowa (24), Minnesota (22) and New York (20), all with 20 or more communities in the top 500.
"When you look at the market rankings, it becomes clear that there are lots of cities in the Midwest where people know how to take care of their nest eggs," notes Beckmann. "Although there are definitely pockets of good savers in every region of the country, the Midwestern region shows the greatest consistency throughout."
A BREAKDOWN OF THE A.G. EDWARDS NEST EGG INDEX
The 2006 A.G. Edwards Nest Egg Index offers a number of fun facts and interesting trends:
-- Metropolitan Areas: Connecticut Market Tops List. Of the 241 metropolitan markets among the 500 communities in the 2006 A.G. Edwards Nest Egg Index, the top 10 are:
1. Bridgeport-Stamford-Norwalk, Conn. (126.20)
2. San Jose-Sunnyvale-Santa Clara, Calif. (125.93)
The success of the Bridgeport-Stamford-Norwalk region of Connecticut can largely be attributed to its citizens' performance in a few critical factors. The community ranked first in investing propensity, meaning residents of the region are more likely to have some sort of investment vehicle than those living elsewhere. The market also performed extremely well in housing value, and ranked near the top in terms of its citizens' savings propensity and ability to maintain a low level of revolving debt.
-- Micropolitan Markets: New Kids On The Block. Of the micropolitan markets that ranked among the 500 communities on the 2006 A.G. Edwards Nest Egg Index, the top 10 are:
1. Los Alamos, N.M. (134.31)
2. Torrington, Conn. (120.85)
3. Edwards, Colo. (116.24)
4. Gardnerville Ranchos, Nev. (115.04)
5. Red Wing, Minn. (114.58)
6. Faribault-Northfield, Minn. (114.33)
7. Lexington Park, Md. (113.49)
8. Juneau, Alaska (113.36)
9. Silverthorne, Colo. (113.23)
10. Jackson, Wyo. (112.86)
-- Midwest Dominates. When it comes to saving and investing, communities in the Midwestern region of the United States -- an area encompassing Ohio, Indiana, Michigan, Wisconsin, Illinois, Minnesota, Iowa, Missouri, North Dakota, South Dakota, Nebraska and Kansas -- significantly outpaced the Northeast, South and West, with 244 Midwestern cities making the top 500 Nest Egg Index list. The Northeast ran a distant second with 102 markets in the top 500, followed by the West with 101 and the South with 65.
-- A River Runs Through It. Could it be that the West is catching up with the East? Last year, cities east of the Mississippi River dominated the top 20 spots in the Nest Egg Index community rankings, compared to those to the west. This year, the East and West are in a virtual dead heat. Excluding Minneapolis-St. Paul, a metropolitan area that straddles the Mississippi River and ranked in the top 20 in both years, Eastern markets took 14 of the top 20 spots in 2005, but accounted for only 10 of the top 20 this year.
-- What's In A Name? A rose by any other name may smell just as sweet, but cities with the same name don't always rival each other in terms of building their nest eggs. Of those markets with the same name ranking in the top 500:
-- Columbia, S.C. (No. 427 on the 2006 Nest Egg Index list with a 96.34 rating) squeaked past Columbia, Tenn. (No. 428 with a 96.32 rating); both communities, however, outpaced their Columbia, Mo., counterpart (No. 461 with a 95.48 rating).
-- Columbus, Ind., tied for No. 94 on the list with a 107.11 rating, leaving Columbus, Ohio (tied at No. 238 and a 102.16 rating) behind.
-- Jacksonville, Ill. (No. 335 with a 98.95 rating) edged out Jacksonville, Fla. (No. 356 with a 98.31 rating).
-- Rochester, Minn. (No. 12 with a 115.39 rating) fared better than its same-name counterpart, Rochester, N.Y. (tied for 117th with a 106.22 rating).
-- Springfield, Ill. (No. 108 with a 106.70 rating) ranked above both Springfield, Mass. (No. 292 with a 100.22 rating) and Springfield, Mo. (No. 434 with a 96.13 rating).
-- Life Is Good In The Badger State. For the second straight year, Wisconsin claimed the most markets among the top 50. This year, the state had eight communities in the top 50 Nest Egg Index markets, up from six in 2005. And Whitewater, Green Bay and Madison just missed the top 50, coming in at 54, 59 and 64 in the rankings, respectively. In fact, every Wisconsin market fell within the top 300, and even the state's lowest-ranked community, Menomonie, finished with a rating above the national average of 100.
-- Settling It Off The Field. When it comes to professional sports championships, don't let the box scores fool you...
-- The Steelers might have claimed the Super Bowl XL trophy, but Seahawks fans can take comfort in knowing that Seattle ranked No. 73 (108.60), earning them a nest egg ring over Pittsburgh's No. 234 rank (102.38).
-- Don't tell Shaq, but that NBA championship looks a lot better than Miami's No. 471 rank (95.20), which doesn't quite measure up to Dallas's No. 343 rank (98.72).
-- The curse of the Bambino might have plagued Boston for years, but it clearly hasn't affected the region's willingness to save. With a No. 13 ranking (115.17), Boston can enjoy victory over their bitter rivals from New York, who ranked No. 255 (101.64).
-- As for the NFL's oldest rivalry, Green Bay pulled out a nail-biter over Chicago, with the Packers earning a No. 59 rank (109.01) compared to the Bears' No. 62 rank (108.83).
-- Intra-state Rivalries. The competitive spirit isn't just limited to the world of sports -- geographic rivalries abound, as well. And as the Nest Egg Index shows, markets within the same state can vary widely.
-- San Francisco's No. 9 rank (116.42) significantly bested Los Angeles' No. 443 (95.92).
-- Philadelphia's No. 63 rank (108.78) showed no brotherly love to Pittsburgh's ranking of No. 234 (102.38).
-- Cincinnati's No. 152 rank (104.87) edged out Cleveland's rank of No. 182 (103.98).
-- At No. 91, Kansas City (107.18) just managed to outrank St. Louis' No. 100 (106.92).
About A.G. Edwards & Sons, Inc.
Drawn to the firm's client-first philosophy, individuals and businesses have turned to A.G. Edwards for sound advice and access to a wide array of investment products and services that can help them meet their financial goals and objectives. Founded in 1887, A.G. Edwards and its affiliates employ nearly 7,000 financial consultants in more than 700 offices nationwide and two European locations in London and Geneva. More information can be found on agedwards.com.
How We Do Business
A.G. Edwards generally acts as a broker-dealer but may act as an investment advisor on designated accounts, and the firm's obligations will vary with the role it plays. When working with clients, the firm generally acts as a broker-dealer unless specifically indicated in writing. To better understand the differences between brokerage and advisory services, please consult Important Information About Your Relationship With A.G. Edwards on agedwards.com.
Editor's notes: A.G. Edwards created the Nest Egg Index based on consumer data compiled by marketing information resources firm Claritas and a cost of living measure by the American Chamber of Commerce Research Association. Rankings are based on 12 statistical factors that reflect or influence personal savings habits, including the investing and savings propensity of the local population; participation in retirement savings plans; home and other asset ownership; employment and income earning potential; and personal debt levels. For a copy of the full study results, go to nesteggindex.com.
For its 2006 Nest Egg Index, A.G. Edwards used the current metropolitan and micropolitan statistical area designations, as defined by the U.S. Census Bureau. As a result, the metropolitan statistical areas (MSAs) on this year's Nest Egg Index may not be directly comparable to the MSAs reviewed last year. The following types of changes may affect the comparability of the Nest Egg Index MSA lists: 1) a county or counties added; 2) a county or counties deleted; 3) two or more areas merged to form a single metropolitan statistical area; 4) a metropolitan area split to form multiple metropolitan and micropolitan statistical areas; and 5) reclassification as a micropolitan statistical area.
