Schwab Study Finds Chicagoans Feel Recession Isn't Close to Over

Local Investors Expect at Least One to Two More Years Before Recovery is Realized

Tuesday, February 9, 2010 10:03 am PST

Dateline:

CHICAGO

Public Company Information:

NASDAQ:
SCHW
"Highest in Investor Satisfaction with Self-Directed Services"

CHICAGO--(BUSINESS WIRE)--According to a new Charles Schwab survey, over half of Chicago investors think the recession will continue for at least another year. Only 5 percent believe the recession has already ended.

While an increase in unemployment is an indicator that the recession is over from an economic perspective, survey respondents note it is one of two personal indicators that the recession is in fact not over. For one third (33 percent) of respondents, the defining moment for the end of the recession will be when people begin finding jobs again. Another 29 percent of Chicagoans will feel the recession has ended when home prices in the neighborhood return to pre-recession prices.

“Despite the recent increase in investor confidence, we’re hearing from many of our clients that they don’t feel they can move out of recession mode to recovery mode,” said Jim Stoops, financial consultant at Charles Schwab in Naperville, Ill. “We’re helping each client cope with the economy by revisiting budgets and adjusting portfolios to better reflect their risk tolerance.”

Chicagoans Devise Own Bailout Plan

Chicagoans have proven committed to making moves that lessen the burden caused by the market environment over the past two years:

  • Living below their means: More than half (55 percent) reduced everyday living expenses, with an additional 51 percent now preparing more meals at home
  • Home is where the heart is: Over one in four (26 percent) delayed or canceled a vacation
  • Lean on me: 24 percent helped a family member with money
  • Staying put: One in five (21 percent) delayed selling or buying a house
  • Living in the now: 14 percent decreased the amount of money going to retirement accounts

“While we’re happy to see the Chicago community’s proactive approach to their finances, we’re concerned that the recession has impeded the retirement planning of many,” said Stoops. “Successful retirement planning requires ongoing vigilance and dedication, particularly in difficult financial times. A financial consultant can often provide the necessary guidance to keep investors on track, and we encourage Chicagoans to visit a local Schwab branch for a free financial check-up and ensure their plan still fits their risk tolerance, income and timeline.”

You Don’t have to Go It Alone

Chicago investors have access to a broad range of Schwab resources:

  • Local assistance for clients, including free workshops about financial basics, fixed income investing, research and trading, and retirement and estate planning. For more information, visit http://www.schwab.com/chicago and find a branch near you
  • Free financial check-up, for all, with a financial professional. For more information, visit http://www.schwab.com/chicago to schedule an appointment at a local branch
  • 24/7 phone support
  • New Client and Rollover concierge programs to make transitioning to Schwab easy
  • Timely market insights provided online at www.schwab.com/marketinsight, as well as emailed regularly and published quarterly in On Investing magazine for clients

For More Information

Schwab clients are encouraged to reach out to their Financial Consultant to get more specific advice around their situations or take advantage of our complimentary consultation. For those who do not have a Financial Consultant or are not yet a Schwab client but would like to learn more, one of our Investment Consultants can help. Please call 800-540-0078 to get started. For a list of local Schwab branches, please visit: http://www.schwab.com/chicago.

About the Survey

The Charles Schwab “Recession and Financial Advice” Survey was conducted by Koski Research between Dec. 2 and Dec. 11, 2009 using an online study, average about 10 minutes. Survey respondents had a minimum of $2,500 in an investment or retirement account in the Chicago (250), Houston (256) and Seattle (250) areas.

About Charles Schwab

The Charles Schwab Corporation (Nasdaq:SCHW) is a leading provider of financial services, with more than 300 offices and 7.7 million client brokerage accounts, 1.5 million corporate retirement plan participants, 722,000 banking accounts, and $1.42 trillion in client assets. Through its operating subsidiaries, the company provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. Named "Highest in Investor Satisfaction with Self-Directed Services" by J.D. Power and Associates in 2009, its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, www.sipc.org), and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. The Charles Schwab Bank (member FDIC) provides banking and mortgage services and products. More information is available at www.schwab.com. (0110-0890)

Contact:

Charles Schwab
Matt Hurwitz, 415-667-0480
Matt.Hurwitz@schwab.com
or
Edelman
Pablo Rodriguez, 415-486-3267
Pablo.Rodriguez@edelman.com

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