Message #3 From:
Stock News Bot Date: September 26, 2006 02:00:00 AM
AGE News A.G. Edwards Releases September Nest Egg Score
ST. LOUIS--(BUSINESS WIRE)--With a national score of 631, Americans remain steadfast and continue to
do a fair job of building their nest eggs of personal wealth, according
to the latest quarterly A.G. Edwards (NYSE:AGE) Nest Egg Score, released
today.
The Nest Egg Score, which looks at 12 factors that influence the ability
of U.S. adults to build wealth, benefited from the lowest unemployment
rate in five years, broader ownership of investment vehicles, growth in
homeownership and a slight increase in retirement plan participation.
These factors, however, were offset by the highest inflation rate in
five years, a decline in the nation’s home
equity rate and increased tax payments.
According to government data used to calculate the A.G. Edwards Nest Egg
Score, the U.S. personal savings rate remains negative, indicating that
Americans may still be counting on asset growth to build wealth rather
than saving more of their current income. Unfortunately, the home equity
rate fell in the latest quarter, reflecting the recent cool-down in the
real estate market.
“Despite some improvement in Americans’
savings and investing behaviors, we are still only collectively doing a
fair job of building wealth,” said Robert L.
Bagby, chairman and chief executive officer of A.G. Edwards. “With
so many factors affecting our savings abilities that extend beyond our
control, it is more important than ever to focus on the financial
decisions we can control and make investment choices accordingly.”
Caring for Nest Eggs Across the Country
As part of the quarterly compilation of its Nest Egg Score, A.G. Edwards
examined the regional differences in the savings and investing habits of
Americans using ongoing proprietary Nest Egg Score surveys completed
last March, May and August. The surveys, conducted on behalf of the
company by Harris Interactive®,
revealed a number of findings, including:
Cracking the Nest Egg — From a
national perspective Americans were most likely to cite the cost of
covering day-to-day living expenses (55 percent) as the biggest
obstacle to starting or building their nest eggs, followed by too
little income (48 percent) and too much debt (28 percent).
Northeasterners were more likely than residents in any other region to
cite the cost of raising children as an obstacle to starting or
building their nest eggs (34 percent versus 24 percent in the Midwest,
18 percent in the South and 21 percent in the West). [March
2006]
Building a Nest, Versus Building a Nest Egg—
In all geographic areas (Northeast, Midwest, South and West), about
half of Americans (53 percent) feel it is absolutely essential or
extremely important to own a home, compared with 48 percent who feel
it is absolutely essential or extremely important to build a nest egg
of savings and financial investments to achieve long-term goals such
as retirement. [March 2006]
Southern Savings Statistics—
Southerners are least likely to have a traditional savings account (37
percent versus 51 percent in the Northeast, 48 percent in the Midwest
and 47 percent in the West). [August 2006]
The Willful West— Westerners are
least likely to cite day-to-day living expenses as the biggest
obstacle to starting or building their nest eggs (46 percent versus 57
percent in the Northeast, 56 percent in the Midwest and 60 percent in
the South). [March 2006]
“No matter what region of the country you
live in, it’s important to take time to
evaluate your individual situation and determine what’s
right for you when it comes to building your nest egg,”
said A.G. Edwards Financial Planning Specialist Sophie Beckmann, CPA, CFP®.
“To get started, identify your financial
goals — such as saving for retirement, buying
a home or even saving for a rainy day. Then develop a plan to meet those
financial goals.”
Individuals interested in estimating their own Nest Egg Scores can visit
nesteggscore.com for a look at how well they are building wealth.
Complementing the quarterly Nest Egg Score, earlier this month A.G.
Edwards released its second annual Nest Egg Index (nesteggindex.com),
which ranks America’s 500 top-performing
communities and the 50 states based on their residents’
personal savings and investing behavior. The Nest Egg Index also shows
the geographic regions where people are succeeding and where they face
the greatest difficulty in building and nurturing their nest eggs.
About the Nest Egg Score
The A.G. Edwards Nest Egg Score is a single, quarterly, three-digit
numerical rating that represents a measure of the relative strength or
weakness of Americans’ wealth-building
performance, similar to the scoring systems used to evaluate
creditworthiness. A high Nest Egg Score indicates that households are
having more success in building their nest eggs or that economic
conditions are favorable for saving and investing. Conversely, a low
score means that households are not taking advantage of opportunities to
build their nest eggs or that economic conditions are not conducive to
wealth accumulation.
To create the Nest Egg Score, A.G. Edwards takes into account 12
statistical factors gathered from federal government data and
proprietary research conducted for A.G. Edwards by Harris Interactive
that pertain to building wealth. Quarterly data for each factor is
evaluated and scored on the following scale: 450 to 549 —
poor; 550 to 649 — fair; 650 to 749 —
good; and 750 to 850 — excellent. The 12
individual scores are then combined and weighted to determine the Nest
Egg Score.
For further information on the A.G. Edwards Nest Egg Score, go to
nesteggscore.com.
Survey Methodology
The three quarterly Nest Egg Score surveys were conducted online by
Harris Interactive on behalf of A.G. Edwards among a nationwide sample
of U.S. adults aged 18 and over within the United States as follows:
between Aug. 23 and Aug. 25, 2006 among 2,295 adults; between May 23 and
May 25, 2006 among 2,197 adults; and between March 14 and March 16, 2006
among 2,182 adults. Figures for region, age within gender, education,
household income and race/ethnicity were weighted where necessary to
bring them into line with their actual proportions in the population.
Propensity score weighting was also used to adjust for respondents’
propensity to be online.
With a pure probability sample of these sizes one could say with a
ninety-five percent probability that the overall results have a sampling
error of +/- 3 percentage points. Sampling error for the subgroups of
adults living in the Northeast, Midwest, South and West is higher and
varies. However that does not take other sources of error into account.
This online survey is not based on a probability sample and therefore no
theoretical sampling error can be calculated.
Harris Interactive is responsible for fielding the online surveys on
behalf of A.G. Edwards. A.G. Edwards is responsible for the compilation
of data from other sources and for computing the Nest Egg Score and the
results reported.
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 6,700 financial
consultants in more than 740 offices nationwide and two European
locations in London and Geneva. More information can be found on
agedwards.com.
How A.G. Edwards Does 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/disclosures.
About Harris Interactive
Harris Interactive is the 12th largest and
fastest-growing market research firm in the world. The company provides
research-driven insights and strategic advice to help its clients make
more confident decisions which lead to measurable and enduring
improvements in performance. Harris Interactive is widely known for The
Harris Poll, one of the longest running, independent opinion polls and
for pioneering online market research methods. The company has built
what could conceivably be the world’s largest
panel of survey respondents, the Harris Poll Online. Harris Interactive
serves clients worldwide through its United States, Europe and Asia
offices, its wholly-owned subsidiary Novatris in France and through a
global network of independent market research firms. The service bureau,
HISB, provides its market research industry clients with mixed-mode data
collection, panel development services as well as syndicated and
tracking research consultation. More information about Harris
Interactive may be obtained at www.harrisinteractive.com.
