Top-Line 2004–05 Affluent MacroMonitor


Introduction
Table of Contents
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Introduction

In this Top-Line volume, we provide the responses of affluent households to the 2004–05 MacroMonitor survey questionnaire. This volume follows the order of the survey questionnaire fielded in the summer of 2004. Responses to each question on page A-1 of the questionnaire will be on page A-1 or A-1a in this volume.

Affluent households are those whose annual income is $100,000 or more or whose total assets, excluding their primary residence, is $500,000 or more1. In the summer of 2004, when this survey was fielded, 1,653 respondents qualified as affluent, representing 22,858,000 households. The MacroMonitor defines a household as made up of all persons (adults and children) living in the primary home who share basic finances. A household could consist of a single adult (with or without dependent children), married adults (with or without dependent children), or unmarried adults (with or without dependent children) who share basic finances. Sharing basic finances means sharing such financial matters as paying bills, obtaining loans, making investments, and supporting dependent children. The primary home is the place household members live most (or all) of the year.

At each question, the respondent population is described, for example, "Own or Lease Vehicle" or "Own a Mutual Fund." If no respondent population is described, the respondent population is: "All U.S. Affluent Households." The weighted number of households answering a question is the "base" for that question. Responses to each question are shown as percentages of this base. An asterisk (*) in place of a numerical percentage indicates that the percentage is greater than 0 but less than 1; a dash (–) indicates no response. The answers to each single-response question should sum to 100%. In some cases, the sum will be slightly larger or smaller than 100% because of rounding.

Where comparable, we show trend information from the 2002–03 Affluent MacroMonitor. When trend information is available it appears in italics to the right of or below the 2004 data. If alternative question wording was used previously, it will be indicated in a footnote. An "n.a." indicates that the item was not asked in the pertinent year.

A sample question is below.


Sample Question—Affluent Top-Line
 
A. 9.   Overall, who handles most of the major financial affairs of
your household? (CHECK ONE BOX ONLY)
 
  Base: 22,445,000
16,372,000
 
  43% 46% Male head of household
  23 21 Female head of household
  34 34 Both male and female heads of household
    *   – Other


Four appendices follow the questionnaire sections. Appendix A outlines the survey methodology, including a description of questionnaire design, sample selection, and fielding. Appendix B describes the procedures used to weight the sample to nationally representative distributions. Appendix C provides confidence interval tables for sample tolerance. Appendix D describes the net worth algorithm and other calculated variables.

In-depth analysis and interpretation of the affluent as a group and among relevant, logical, identifiable segments will be provided in the 2004–05 MacroMonitor Affluent analysis volume, America's Affluent: Roadmap for the Twenty-First Century. The analyzed segments include Entrepreneurs, Wealthy Retired, Real Asset Builders, Focused Builders, Emerging Affluent, and Balanced Builders. This analysis, which includes trend information, will examine the demographic, financial, and attitudinal shifts of the affluent and looks for insights and understanding that will assist marketers now and in the future.


Figure 1: Affluent Segmentation


Four appendices follow the questionnaire sections. Appendix A outlines the survey methodology, including a description of questionnaire design, sample selection, and fielding. Appendix B describes the procedures used to weight the sample to nationally representative distributions. Appendix C provides confidence interval tables for sample tolerance. Appendix D describes the net worth algorithm and other calculated variables.


1 Before 2000–01, the MacroMonitor defined affluent households as those whose annual income was $75,000 or more or whose total assets, excluding their primary residence, was $300,000 or more.



Table of Contents


INTRODUCTION v
QUESTIONNAIRE SECTIONS  
A. HOUSEHOLD INFORMATION A-1
  Family composition A-1
  Sex, age, marital status, and financial decision-maker A-2
B. FINANCIAL ATTITUDES AND INTERNET ACCESS AND USE B-1
  $25,000 windfall B-1
  General financial attitudes B-1
  Direct marketing B-2
  Automatic and alternative access B-4
  Personal computers and financial services over the Internet B-4a
C. USE OF FINANCIAL INSTITUTIONS C-1
  Primary institution C-1
  Attitudes toward institutions C-2
  Banks, savings & loans, and credit unions C-2a
  Insurance companies C-5a
  Mutual fund companies, stockbrokerages, and financial planning companies C-8
  Consumer finance, vehicle finance, and other finance and credit companies C-11
  Share of wallet C-13
D. CHECKING, SAVINGS, AND OTHER ACCOUNTS D-1
  Checking accounts and regular or passbook savings accounts D-1
  ATM and debit cards D-2
  Money market deposit accounts and money market mutual funds D-3
  Packaged accounts and asset management accounts D-4
  Wrap accounts D-6
  Cusotdial accounts, education savings accounts, and 529 plans D-7
  Private banking D-8
  Recent and likely account activity D-8a
E. INVESTMENTS E-1
  Investment goals E-1
  Investment factors and risk–return tradeoff E-1
  Investment attitudes E-2
  Discretionary income E-3
  Certificates of deposit E-3
  U.S. Savings Bonds E-4
  Stock and bond mutual funds E-4
  Stocks, bonds, and other securities E-9a
  Stockbrokerage accounts E-10
  Trading activity E-10a
  Margin agreements and accounts E-11a
  Personal trusts E-12
  Limited partnerships E-12a
  Tangible assets E-13
  Recent and likely investment activities E-13a
F. RETIREMENT PRODUCTS F-1
  Retirement attitudes F-1
  Retirement status and concerns F-1a
  IRAs and SEPs F-2
  Keogh accounts F-4
  Salary-reduction plans F-5
  Individual annuities F-7
  Defined benefit pension plans F-9
  Recent and likely retirement activity F-10
G. REAL ESTATE G-1
  Primary home G-1
  Homeowner's and renter's insurance G-1a
  Mortgages, home loans, and lines of credit on primary home G-2
  Mortgage life and disability insurance on primary home G-4a
  Mortgages, home loans, lines of credit, and insurance on other real estate G-5a
  Reverse mortgages G-6
  Recent and likely real estate and credit activity G-7
H. VEHICLES H-1
  Vehicle ownership, loans, leases, and insurance H-1
  Recent and likely vehicle activity H-3a
J. CONSUMER LOANS J-1
  Purposes for borrowing J-1
  Attitudes toward credit J-1a
  Installment loans, education loans, other loans, and credit lines J-2
  Recent and likely consumer credit activity J-3a
K. CREDIT CARDS K-1
  Credit cards—VISA, MasterCard, Discover, American Express, and retail store K-1
  Affinity and features K-2
  Travel and entertainment cards K-4a
  Smart cards K-5
  Recent and likely card activity K-5a
L. LIFE INSURANCE L-1
  Attitudes toward insurance L-1
  Group life insurance L-2
  Individual life insurance L-2a
  Term life insurance L-3
  Whole life (straight life) insurance L-3a
  Universal, variable, and interest-sensitive life insurance L-4
  Policy loans L-5
  Most recent insurance purchase L-5
  Recent and likely life insurance activity L-6a
M. OTHER INSURANCE M-1
  Health insurance—group and individual M-1
  Health-related insurance—group and individual M-1
  Liability and accident insurance M-2
  Recent and likely health insurance activity M-3
N. INFORMATION AND ADVICE N-1
  Financial status and confidence N-1
  Attitudes toward financial information and advice N-1a
  Use of financial professionals N-2
  Time, trust, and control N-3
  Type of financial advice likely to obtain N-4
  Information sources and topics N-4a
O. DEMOGRAPHICS (BACKGROUND INFORMATION) O-1
  Major life events O-1
  Membership in organizations and associations O-2
  Education and employment status O-2
  Retirement age O-4
  Occupation O-4a
  Business ownership O-5
  Income—source, amount, percent contribution O-6
  Ethnicity and respondent identity O-7
GLOSSARY P-1
 
APPENDIXES
  A   MACROMONITOR SURVEY METHODOLOGY AA-1
  B   SURVEY WEIGHTING PROCEDURES BB-1
  C   SAMPLING TOLERANCE TABLES CC-1
  D   CALCULATED VARIABLES DD-1