charles schwab survey of d.c. metro area residents
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The View fromWashington, D.C.:
May 2016
1,000 residents share their perspectiveson life in the Washington, D.C.metropolitan area, the local economy
and personal finances
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Methodology
What
An online study among a sample of the general public wasconducted by Koski Research.
Koski Research is neither affiliated with, nor employed by, CharlesSchwab & Co., Inc.
When The study was fielded March 28thApril 8th, 2016.
Who
1,000 from Washington, D.C. aged 21-75 completed the survey. The sample was drawn from online sample sources. The geographical area of the sample included all the Maryland,
Virginia, and D.C. counties in the Washington, D.C. MetropolitanStatistical Area (MSA). Quotas were set so that the sample is
demographically representative of the Washington, D.C. area andthe data has not been weighted. Note: Unless noted otherwise, Washington, D.C. and the D.C. Area
refer to the Washington, D.C. area as defined above andWashingtonians refers to the residents of this area.
Note: There were few differences between 2015 and 2016;therefore, where significant, these differences are shown in call-out
boxes.2
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The Washington,D.C. Metro AreaEconomy
3
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Six in ten area residents see the Washington, D.C. economyas better than the U.S. economy as a whole; few say itsworseWashington, D.C. Economy Comparison to U.S. Economy
All Washington, D.C.
Q7 If you were to compare the economy of the Washington, D.C. area to the economy of the United States overall, would you say Washington, D.C.s economy is (Base: AllWashington, D.C. = 1,000)
Better58%
Same35%
Worse7%
4
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11%
11%
39%
39%
Washingtonians are more bullish about their owneconomies than about the U.S. economy
Q6 How do you view the economy? (Base: All Washington, D.C. = 1,000)
13%
28%
36%
23%Becoming moreprosperous
Staying aboutthe same
Becoming less
prosperous
Cannot say
View of the Economy
All Washington, D.C.
In the United States
9%
10%
45%
36% Becoming more
prosperous/stayingthe same(NET) = 59%
Becoming moreprosperous/staying
the same(NET) = 81%
In Washington, D.C.In Your Neighborhood
Becoming moreprosperous/staying
the same(NET) = 78%
5
53% in 2015
28% in 2015
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According to Washingtonians, top priorities for the newPresident are balancing the budget, tax reform andunemployment
Q12 In 2017, there will be a new President of the United States. Which of the following is the one economic topic orissuethat the new President should be making the biggestpriority? (Base: All Washington, D.C. = 1,000)
Top Economic Priority for the New President
All Washington, D.C.
22%
13%
10%
9%
9%
9%
7%
7%
5%
3%
1%
1%
1%
Balancing the national budget
Tax reform
The unemployment rate
Funding for safety net programs, such as Medicaid and welfare
The minimum wage
Reforming social security
Student loan forgiveness
Cost of higher education
Wall Street regulation or reform
Promoting retirement savings
Immigration/Illegal immigration
Healthcare/Healthcare reform
Federal spending/Cutting waste-entitlements-defense
6
Note: no other response mentioned by more than 1%
17% in 2015
6% in 2015
5% in 2015
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Life in theWashington, D.C.
Metro Area
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13%79%
75%
58%
57%
54%
46%
45%
25%
22%
15%
15%
12%
11%
5%
6%
6%
10%
14%
20%
14%
33%
32%
37%
39%
62%
66%
Washington, D.C. Comparison to Other U.S. Metropolitan Areas
All Washington, D.C.One of the Best
Washingtonians are positive about many aspects of living inWashington, D.C., but costs of living and housing areconsidered high
Q5 When you think about the top large metropolitan areas in the U.S., how do you think the Washington, D.C. area compares on each of the issues listed below? For eachcharacteristic please indicate whether you think Washington, D.C. is One of the Best metropolitan areas or whether it is One of the Worst. (Base: All Washington, D.C. = 1,000)
One of the Worst
Arts and culture
Food and dining
Employment rate
Quality of education
Quality of life
Public transportation
Effectiveness of local politicians
Infrastructure: roads, highways, etc.
Crime rate
Tax rates
Cost of living
16%
19%
36%
33%
32%
34%
41%
42%
46%
48%
46%
26%
23%
Neither One of the Best norOne of the Worst
8
Quality of housing
Cost of housing
29% in 2015
23% in 2015
54% in 201531% in2015
27% in2015
34% in 2015 37% in 2015
29% in 2015
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Washingtonians believe it takes more to be consideredfinancially comfortable or wealthy in Washington, D.C.compared to the rest of the U.S.
Q17 At what level of personal net worth would you say a person in the Washington, D.C. area could be considered financially comfortable?Q18 At what level of personal net worth would you say a person in the Washington, D.C. area could be considered wealthy?Q18a At what level of personal net worth would you say a person living in the rest of the United States could be considered financially comfortable?Q18b At what level of personal net worth would you say a person living in the rest of the United States could be considered wealthy? (Base: All Washington, D.C. = 1,000)
Net Worth Needed to be Financially ComfortableAll Washington, D.C.
Net Worth Needed to be WealthyAll Washington, D.C.
$720K $620K
$220K $170K
In Washington, D.C. In the U.S. In Washington, D.C. In the U.S.
$2.7M
$1.8M
$1M$690K
In Washington, D.C. In the U.S. In Washington, D.C. In the U.S.
9
$890K in 2015
MedianAverage
MedianAverage
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If money were no object, about 1 in 5 Washington arearesidents would live in Old Town Alexandria; expense is theprimary barrier
Q8 If money were no object, where in the Washington, D.C. area would you like to live? (Base: All Washington, D.C. = 1,000)Q9 What is preventing you from living in (preferred place)? (Base: All Washington, D.C. = 1,000)
Preferred Neighborhood of
ResidenceAll Washington, D.C.
19%
11%
7%
7%
7%
6%
6%
3%
3%
2%
2%
2%
2%
22%
Old Town Alexandria
Bethesda
Capitol Hill
Chevy Chase
Rockville
DuPont Circle
Crystal City
Clarendon-Courthouse
Ballston
Eastern Market
Rosslyn
Foggy Bottom
Georgetown
Other
65%
20%
19%
15%
5%
5%
6%
14%
It's too expensive
The real estate options do not meetmy needs
It's too far from work
It's too far away from familymembers / friends
The schools in the area are not highquality
There's too much crime in the area
Other
Nothing - I currently live there
Barriers to Living in Preferred
NeighborhoodAll Washington, D.C.
10
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10%
28%
62%Own home
Rent home
Have otherarrangement
45%
38%
37%
23%
19%
19%
4%
9%
Im not making enough money to savefor the purchase of a home
I cant afford a home in theneighborhood I want to live in
Im still paying off debt
Im not interested in purchasing ahome in the near-term
Im currently saving for other thingsbesides a home
It is more financially attractive to rentthan own a home in D.C.
Other
Nothing would prevent me frompurchasing a home
Most Washingtonians are homeowners; non-owners sayinadequate income, cost of homes in their desiredneighborhood or debt are barriers to home ownership
Q28 Do you currently... (Base: All Washington, D.C. = 1,000)Q29 Which of the following would prevent you from purchasing a home? (Base: Those who dont own = 383)
Factors Preventing Home Ownership
Among those who dont own
Home Ownership
All Washington, D.C.
11
47% in 2015
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Want to stay in sameneighborhood in
Washington, D.C. area
Want to move to adifferent neighborhood in
Washington, D.C. area
Want to move outside ofWashington, D.C. area
Undecided
Don't plan to retire
3%
In retirement, one-quarter of employed Washingtoniansplan to stay in their current neighborhoods; one-quarterwant to move out of the areaPlanned Retirement Residence
Among employed Washington, D.C.
Q3 When you think about retirement, what are your plans for where you will live? (Base: Employed Washington, D.C. = 674)
25%
8%
26%
38%
12
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79%
78%
77%
72%
67%
64%
49%
42%
40%
31%
21%
22%
23%
28%
33%
36%
51%
58%
60%
69%
Im happy with my quality of life in Washington, D.C.
Children can get a good education in the public schools in my area
There are plenty of job opportunities in the D.C. area
I feel good about the property values in my neighborhood
Crime is hurting the economy in the Washington, D.C. area
The Washington, D.C. area has high quality public transportation
Tax rates in my area are reasonable
Overall cost of living in my area is reasonable
Politicians do a good job making the local economy stronger
I like Washington, D.C. more during an election year
Agree Disagree
Three-fourths or more agree that quality of life, educationand jobs are key strengths of the area; but most dislikebeing there during an election yearAgreement with Statements About Washington, D.C.
All Washington, D.C.
Q13 Please indicate your level of agreement or disagreement with each of the statements below. (Base: All Washington, D.C. = 1,000)
13
57% in 2015
70% in 2015
30% in 2015
45% in 2015
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44%
42%
32%
30%
23%
23%
21%
20%
19%
13%
11%
37%
39%
38%
38%
42%
42%
30%
38%
40%
33%
22%
15%
14%
22%
22%
26%
26%
29%
27%
29%
35%
30%
3%
4%
5%
6%
6%
6%
13%
10%
9%
14%
20%
1%
1%
3%
4%
3%
3%
8%
5%
3%
5%
17%
That welcomes diversity
For young professionals
Where I can achieve my career ambitions
Where a child can receive a good education
For innovation
That is business friendly for large companies located here
Where I can make a difference on national policies
To raise a family
For entrepreneurs - those seeking to start and own a business inthe area
For the middle class
To spend your retirement years
A B C D F
Washington, D.C. gets high marks as a place that welcomesdiversity and for young people; not so much for the middleclass or retireesHow Residents Grade Washington, D.C.
All Washington, D.C.
Q16 How would you grade the greater Washington, D.C. area on each of the following? (Base: All Washington, D.C. = 1,000)
Washington, D.C. is a placeExcellent Fail
Grade
A/B (Net)
14
81%
81%
70%
68%
65%
65%
51%
58%
59%
46%
33%
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76%
67%
65%
60%
56%
54%
54%
40%
40%
37%
35%
34%
26%
24%
16%
15%
14%
6%
Tourist destination
The political capital of the world
Theaters, operas, museums
Lobbyists
Large number of military personnel
A place that welcomes diversity
Place for good job and career opportunities
Poorly equipped to handle extreme weather
Large homeless population
Diehard sports fans
Patriotism
Growing economy
Poor infrastructure
A tech hub
Supports small businesses
High quality of life at a reasonable cost
Committed to environment by living green
Affordable real estate
Residents of Washington, D.C. more often than others seethe area as welcoming diversity, offering job and careeropportunities and a growing economy; but less on patriotism
Q32a The Washington, D.C. Area is well known for a variety of reasons. Which of the following do you believe describe the D.C. Area?
Q32b People from other places also have impressions of the Washington, D.C. Area. Which of the following do you think people from other places believe are descriptive of the D.C.Area? (Base: All Washington, D.C. = 1,000)
15
75%
68%
57%
59%
50%
36%
40%
38%
37%
28%
45%
23%
23%
16%
11%
13%
8%
7%
How Washington is Seen by Washingtonians and Others
All Washington, D.C. How WashingtoniansSee Washington
How Washingtonians Think OthersSee Washington
NetDifference
+1
-1
+8
+1
+6
+18
+14
+2
+3
+9
-10
+11
+3
+8
+5
+2
+6
-1
vs.
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PersonalFinances in the
Washington, D.C.Metro Area
16
M h h lf f W hi i l l i
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40%
7%
5%
4%
1%
15%
8%
4%
3%
3%
5%
1%
2%
*
1%
Local area cost of living
Local area housing market
Local area employment rate
Local area tax rates
Local political environment
U.S. economic outlook
U.S. stock market volatility
Outcome of the 2016 U.S. presidential election
U.S. unemployment rate
U.S. interest rate environment
Global economic outlook
Global political instability
Amount of money/Personal finances/Income
My personal-family job stability/Job(s) (Unspecified)
Other mentions
More than half of Washingtonians say local issues(especially cost of living) have the greatest impact on theirpersonal financial decisionsImpact on Making Personal Financial Decisions
All Washington, D.C.
Q10 Which of the following factors or events have the greatest impact on how you make your personal financial decisions? (Base: All Washington, D.C. = 1,000)
17
Local events(net) = 57%
U.S. events(net) = 33%
Global events(net) = 6%
* = < 0.5%
C fid i hi i fi i l l i hi h h
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7%
21%
47%
25% Very confident
Somewhatconfident
Not very confident
Not at all confident
Confidence in achieving financial goals is high; however, aplurality says living in Washington, D.C. hurts their ability toreach their financial goalsConfidence in Ability to Achieve
Financial GoalsAll Washington, D.C.
Q20 How confident do you feel that you will be able to reach your financial goals?
Q21 Would you say that living in Washington, D.C. helps or hurts your ability to reach your financial goals? (Base: All Washington, D.C. = 1,000)
18
Effect of Living in Washington, D.C. on
Reaching Financial GoalsAll Washington, D.C.
11%
21%
44%
24%Living inWashington, D.C.helps
Living inWashington, D.C.hurts
Doesn't affect myability to reach my
financial goals
Uncertain
36% among those who usean FA vs. 21% among
those who dont
Confident(net)=72%
NotConfident(net)=28%
W hi gt i th t h fi i ll
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Tech savvy43%
Financially
savvy35%
Politicallysavvy22%
Washingtonians say they are more tech savvy or financiallysavvy than politically savvy, and they tend to be somewhatmore savers than investors
Q18c Would you consider yourself more financially savvy, politically savvy or tech savvy?Q19 How would you describe your approach to building wealth? (Base: All Washington, D.C. = 1,000)
Financially Savvy vs. Tech Savvy vs.
Politically SavvyAll Washington, D.C.
All Washington, D.C.
19
Washingtonians Approach to
Building WealthAll Washington, D.C.
22%
15%
39%
24%
All Washington, D.C.
More ofa saver
More ofan investor
Committedto both
Notbuilding wealth
right now
I t f l i g f th f t i t
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In terms of planning for the future, seven in tenWashingtonians have a financial plan, but only one in fourhave it in writing
Q23 Do you currently have a financial plan? (Base: All Washington, D.C. = 1,000)
Have a plan inwriting24%
Have a planbut not written
47%
Don't have aplan29%
Financial Planning
All Washington, D.C.
Have a financialplan (NET) = 71%
20
Washingtonians are saving primarily for retirement and
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62%
50%
29%
24%
22%
20%
7%
1%
22%
7%
Retirement
Emergency funds
Vacation funds
Purchasing a home
College costs for my children
Medical expenses for family members
Starting my own business
Other mentions
I'm saving but I don't have a specific goal
I am not saving for anything currently
Washingtonians are saving primarily for retirement andemergencies, but the areas cost of living and paying offdebt are the top barriersTop Three Saving/Investing Priorities
All Washington, D.C.
Q26 Which of the following are your top three saving and investing priorities?Q27 Which of the following obstacles prevent you from saving or investing toward your financial goals? (Base: All Washington, D.C. = 1,000)
Obstacles Preventing Saving/Investing
All Washington, D.C.
46%
34%
17%
14%
11%
10%
9%
7%
2%
5%
23%
Cost of living in Washington, D.C. istoo high
I'm paying off other debt
I'm still paying off my student loans
I am not doing a good job budgetingmy money
I find the process of investingoverwhelming
I'm paying for my children to go toschool
Getting financial advice is too costly
I do not know how to get the financialadvice I need
Underemployed/Unemployed/Notworking
Other mentions
Nothing is preventing me from savingfor my financial goals
21
57% in 2015
6% in 2015
Most Washingtonians say charitable giving plays a small
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25%
46%
18%
11%Charitable giving plays a large role Its part of my financial plan becauseI like to support causes that are important to me and because I can lowermy tax bill
Charitable giving plays a medium-sized role I set aside a certainamount of money each year for charitable giving, but don't really thinkabout tax benefits
Charitable giving plays a small role I contribute if I can, but don't reallyplan ahead for it
Charitable giving plays no role I don't donate much
Most Washingtonians say charitable giving plays a smallrole or no role in their financial planning
Q31 How big of a role does charitable giving play in your financial planning? (Base: All Washington, D.C. = 1,000)
40%
22
Role of Charitable Giving in Financial Planning
All Washington, D.C.
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SurveyDemographics
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D g hi
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DemographicsAll Washington, D.C.
(n=1,000)
Gender
Male 49%
Female 51%
Generation
Millennials (21-33) 27%
Gen X (34-49) 29%
Boomers (50-68) 36%
Matures (Over 68) 9%
Mean age 46
ChildrenHave children (Net) 59%
Under age 18 26%
Over age 18 29%
Both over and under age 18 4%
No children 41%
Racial Background
White/Caucasian 71%African American/Black 16%
Asian 8%
Hispanic or Latino 4%
Other 3%
Prefer not to answer 3%
All Washington,D.C.
(n=1,000)
Employment Status
Employed (Net) 67%Full-time 54%
Part-time 13%
Unemployed, looking for work 6%
Homemaker or student, notlooking for work
10%
Retired, semi-retired 17%Political Orientation
Republican 20%
Democrat 46%
Independent 24%
None of these 5%
Prefer not to say 5%
24
Demographics
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Demographics
All Washington, D.C.(n=1,000)
Total Assets
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