Investor pulse-brochure-va-us

1. U.S. investor pulse
survey 2014
investors
What
are thinking

2. [ 2 ] U. S . In v e s t o r Pu l s e S u r v e y 2 014
What’s on the minds of investors? BlackRock is keenly interested
in what investors across the globe are thinking, how it is influencing
financial behavior today and what it can tell us about the future.
This report summarizes the results from our 2nd annual BlackRock
Global Investor Pulse survey of 27,500 people, focusing on the U.S.
findings where we interviewed a nationally representative sample
of 4,000 Americans, ages 25 to 74.
What investorsare thinking

3. W h at In v e s t o r s a r e T hink in g [ 3 ]
What We Learned from You
Although the global economic recovery is now well underway, Americans aren’t
seeing the personal benefit from the improving landscape. As a result, they remain
in a holding pattern when it comes to their finances. Our research paints a picture of
Americans who are financially fatigued and lacking the confidence to move forward.
And their greatest personal financial concern is retirement. All Americans want a
comfortable retirement with sufficient retirement income to last them throughout
their retirement years. But wanting and saving are two different things, and there’s
a significant expectation gap.
When looking at what American pre-retirees have saved for retirement compared
to the annual retirement income they say they want, they only have enough to
fully fund less than three years of retirement. Looking specifically at affluent
pre-retirees, they only have enough to last less than seven years for a retirement
that could last 20–30 years.
But there is a group of Americans who is getting it right. These Highly Effective
Investors are twice as likely to be confident they are making the right savings and
investing decisions, twice as likely to say they enjoy managing their investments,
and have more than 2.5 times the retirement savings of other Americans. Highly
Effective Investors take specific actions to help achieve their financial goals.
Key Findings
} Retirement Underfunded
Given Future Income
Expectations
} Highly Effective Investors
Do the Right Things
} Fundamental Financial
Worries Exist for Many
} Overallocation to Cash
a Problem for All
7 Key Habits of
Highly Effective Investors
1 Regularly review finances
2 Spend time to get informed
3 Seek financial advice
4 Manage debt
5 Prioritize saving for retirement
6 Diversify portfolios
7 Plan for big moments

4. [ 4 ] U. S . In v e s t o r Pu l s e S u r v e y 2 014
1
Retirement Underfunded Given
Future Income Expectations
Americans identify saving for retirement as their number two
priority, right behind the more general “saving money.” For affluent
Americans (those with more than $250,000 in investable assets),
saving for retirement is their most important priority.
However, only 59% of all Americans have any dedicated retirement savings either
through an employer-sponsored plan or individual retirement savings, a finding
that is surprisingly consistent across generations.
Among all Americans who have started saving for retirement (either on their own
or through employer-sponsored plans), their current balances are very modest,
especially given their expectations for retirement income. Affluent Americans
stand out in their commitment to saving for retirement, with 91% already on their
way. However, that doesn’t necessarily translate to retirement readiness.
Not All Americans Are Retirement Savers
Have you started to save specifically for retirement through a workplace plan or on your own?
AFFLUENT AMERICANS
$250K+ investable assets
MILLENNIALS
AGES 25–36
GEN X
AGES 37–49
BABY BOOMERS
AGES 50–68
59%
91%
60%
57%
59%
ALL AMERICANS

5. W h at In v e s t o r s a r e T hink in g [ 5 ]
the savings/future retirement
income disconnect
Among pre-retirees (ages 55–64), there is a huge disconnect with savings falling
far short of expectations. Pre-retirees’ savings would be exhausted in less than
three years in retirement; affluent pre-retirees would only be able to fund less than
seven years. Looking at the disconnect from another dimension, translating current
savings to future annual retirement income shows a significant gap as well.
These calculations are based on the CoRI™ Retirement Indexes by BlackRock,
which can help estimate how much an investor would need to have saved today
to generate each dollar of annual income in retirement. From our study, we can
see how Americans are facing a serious income gap.
Pre-retirees still have time to close the gap including setting (and sticking with)
additional annual savings targets, factoring in any other sources of income in
retirement like Social Security, which in 2013 provided an average retiree with
approximately $15,000 in annual benefits, working with an advisor to invest
purposefully, and potentially delaying retirement.
The Retirement Income Gap
Sources: Retirement savings and desired income from Global Investor Pulse survey (July/August 2014) in median dollars for
Americans ages 55–64. Estimated annual retirement income is based on the CoRI 2024 Retirement Index for a pre-retired 55
year old. CoRI estimates are as of 10/10/14, and are subject to change over time. Retirement is assumed to begin at age 65.
$
96,200 Total Retirement Savings
$
43,700 desired Annual Retirement Income
income GAPestimated INCOME
$
6,400 $
37,300ALL PRE-RETIRED
AGES 55–64
$
453,900 Total Retirement Savings
$
65,700 desired Annual Retirement Income
AFFLUENT PRE-RETIRED
AGES 55–64
estimated INCOME
$
30,100
$
43,700
DESIRED INCOME
$
65,700
DESIRED INCOME
$
35,600
income GAP

6. [ 6 ] U. S . In v e s t o r Pu l s e S u r v e y 2 014
What Makes It So Hard to Save?
Not earning enough, high living costs and unplanned expenses are key impediments
to saving for retirement. All of these concerns are felt more squarely by Americans
compared to the global average. Not surprisingly, affluent Americans less often
have difficulty balancing both the cost of living and saving for retirement.
Factors Limiting Americans’ Ability to Save for Retirement
Which, if any, of the following are making it hard for you to save for retirement?
I don’t earn enough
The cost of living is too high
I have unplanned expenses
I’m paying off a mortgage
47%
21%
46%
28%
33%
28%
24%
30%
ALL AMERICANS AFFLUENT AMERICANSVS
I have high credit card debt 23%
17%
Deep-Seated Concerns about Retirement Lifestyle Exist
Overall, how concerned are you that you will not be able to live comfortably in retirement?
ALL AMERICANS AFFLUENT AMERICANS
$250K+ investable assets
MILLENNIALS
AGES 25–36
GEN X
AGES 37–49
BABY BOOMERS
AGES 50–68
73%
58% 76% 79%
70%
Given what costs could be by the time we retire, it’s not surprising that 73% of
Americans (58% of affluent Americans) are concerned they will not be able to live
comfortably in their retirement. And more than half of Americans, regardless of
wealth, are specifically concerned about outliving their savings. While Social
Security was never intended to provide for a full retirement, almost two-thirds of
all Americans (including 62% of affluent Americans) say that it will be critical to
their ability to support themselves in retirement.

7. W h at In v e s t o r s a r e T hink in g [ 7 ]
Americans are squeezed by household costs, with 42% of their take-home pay
spent on essential expenses, such as mortgage, rent, utilities and the like.
Compared to the global average, the U.S. percentage is particularly high, leaving
less for everything else and reducing our ability to save and invest.
Americans Spend Far More on Essential Expenses than
the Rest of the World
In a typical month how much of your household’s take-home pay do you typically
spend on mortgages, rent, utilities and other expenses, and how much do you save,
invest and spend beyond these essentials?
DISCRETIONARY
SPENDING
INVESTING/
SAVING
30%
42%
28%
31%
32%
37%
ESSENTIAL
EXPENSES
WORLD
UNITED STATES
Both managing day-to-day expenses and preparing for the future is seen as a
huge challenge for the majority of Americans. Overall, 75% of Americans and 56%
of affluent Americans say it is “hard” to keep up with bills and save for retirement
at the same time. This concern is widespread but more acutely felt by women
and Americans in their middle-years (ages 45–54), those who are at the critical
pre-retirement juncture and should be placing the greatest focus on saving
aggressively for their retirement.

8. [ 8 ] U. S . In v e s t o r Pu l s e S u r v e y 2 014
2
Highly Effective Investors
Do the Right Things
Not all Americans are falling short in meeting their desired
financial goals. There is one group of Highly Effective Investors who
are more confident, positive and in control of their financial future.
They have larger retirement savings accumulated and feel they know
how they are going to generate the income they need in retirement.
Who’s Getting it Right?
Often found among the Millennialgeneration (48%).
More likely men(68% vs. 32% women).
More often married/living as a couple(65%)
with children (63%).
Largely employed(84%) and homeowners(81%),
with many owning their home outright.
Less likely to find it hard to keep up with bills and save for retirement
at the same time.
More positive about their financial future and the economy; optimistic
about their ability to achieve their financial goals.
More likely to feel they are taking the right stepsto prepare
for their retirement.

9. W h at In v e s t o r s a r e T hink in g [ 9 ]
The habits of Highly Effective Investors are helping them better manage their
financial priorities. As a result of their financial habits, Highly Effective Investors
are more optimistic about their financial futures, their money and investments, as
well as the economy overall. Learn how other Americans are feeling.
Habits of highly Effective Investors
A defining characteristic of Highly Effective Investors is that they find a way to
juggle life’s immediate costs—bills, tuition, mortgage payments—and still make
an effort to save and invest for long-term goals. Unlike many Americans, they are
focused on planning for future life events rather than letting things just happen.
They are active learners who invest the time to manage their money and build
their financial knowledge. A majority use a financial professional to help them
develop the steps they need to put together a good financial plan and the right
portfolio that will support their goals.
7 Habits of highly Effective Investors
Regularly review finances
They spend more than 3 times as much time
reviewing and monitoring their savings and
investments on a monthly basis.
Spend time to get informed
They are more than twice as likely to regularly
read financial newspapers or magazines and
make the most of financial blogs and
investment websites.
Seek financial advice
They are more than 2.5 times as likely
to use financial professionals as important
partners to help them make the right
investment decisions.
Manage debt
They are more likely to minimize debt.
They are more than twice as likely to
own their home outright, having paid off
their mortgage.
Prioritize saving for retirement
They put the right emphasis on retirement,
having accumulated more than 2.5 times the
retirement savings of other Americans.
Diversify portfolios
They don’t just fall back on cash. They are more
likely to own a broader range of investments;
nearly twice as likely to own stocks and close to
3 times as likely to own bonds.
Plan for big moments
While life happens to all of us—whether it’s
getting married, buying a home, starting a
family, or experiencing an unanticipated
setback—Highly Effective Investors get ahead
of the curve. They are close to twice as likely to
feel strongly about financial planning and take
steps to plan for the financial implications
of recent life events.

10. [ 1 0 ] U. S . In v e s t o r Pu l s e S u r v e y 2 014
Although we are well into the U.S. economic recovery, there has
been little improvement in investor sentiment since our 2013 U.S.
Investor Pulse survey. Just over half of Americans (52%) describe
their financial future in positive terms, below the global average
of 56%. We believe this is due, in large part, to the concerns about
retirement previously discussed.
Millennials are substantially more confident (66% positive) about their financial
future than other age groups, especially their parents, with less than half of Baby
Boomers (45%) confident about their financial future.
3
Fundamental Financial
Worries Exist for Many
Americans divided on how they Feel about
Their Financial Future
Overall, which of the following words best describe how you feel about your financial future?
NEGATIVE POSITIVE
52%
45%
41%
56%
Confident, Optimistic, Hopeful,
Certain, Comfortable
Nervous, Depressed, Pessimistic,
Frustrated, Concerned
WORLD
UNITED STATES

11. W h at In v e s t o r s a r e T hink in g [ 1 1 ]
In contrast with how all Americans are feeling about their financial future, affluent
Americans describe their future in much more positive terms (73%) and are more
confident they are making the right financial decisions (76%). While on its face,
given higher savings rates, this isn’t surprising. However, given the disconnect
between their savings and retirement income expectations, their confidence may
be unfounded.
Americans continue to worry about the state of the U.S. economy and the high
cost of living. And despite recent health care reforms, health care costs remain a
significant risk factor for half of Americans.
The Top 5 Risks to Your Financial Future
Which, if any, of the following concerns do you think pose a risk to your financial future?
ALL AMERICANS AFFLUENT AMERICANSVS
HIGH COST OF LIVING
61%
48%
STATE OF THE U.S. ECONOMY
55%
58%
HEALTH CARE COSTS
50%
52%
CHANGES IN INFLATION/RISING PRICING
45%
41%
CHANGES IN SOCIAL SECURITY
43%
36%

12. [ 1 2 ] U. S . In v e s t o r Pu l s e S u r v e y 2 014
Four-fifths of Americans (80%) express confidence that their
investment portfolio has the right asset allocation and investments
to help them achieve their financial goals. However, as was true in
our 2013 survey, “cash remains king” with almost two-thirds (63%)
of all savings and investments held in cash—and most of that in
traditional checking and savings accounts (51%). Total cash holdings
remain high (42%) even among affluent Americans.
But here’s the rub: Americans acknowledge they hold too much in cash. By their
own estimates, cash should account for just 29% of their portfolio. Affluent
Americans feel similarly (26%), but they say it’s difficult to make a change.
There is a stark contradiction between Americans’ optimism about their portfolio
and its ability to deliver the growth they need­—and their recognition of being
overallocated to cash, which offers little return after inflation and taxes. Financial
professionals can play an important role in helping investors explore better options
for putting their cash to work.
4
Overallocation to Cash
a Problem for All
Why are you holding cash?
Having cash makes
me feel safe38%
I am cautious
with my money37%
I want to be
flexible and keep
my options open
34%

13. W h at In v e s t o r s a r e T hink in g [ 1 3 ]
What’s most surprising about the “cash is king” conundrum is that Americans
intend to increase their investments in cash in the next 12 months. Overall, 55% of
Americans with cash deposits and savings accounts say they will add more money
to their cash accounts, far outstripping intentions to add to other investments.
In contrast to the huge amount of money that Americans are holding in cash, only
18% is invested in stocks, 6% in bonds and 5% in investment real estate.
Yet Americans are optimistic about the U.S. stock market’s future performance.
This should translate into a willingness to move money out of cash, but it does not.
However, only one in four Americans say they are “more interested” in investing in
stocks compared to five years ago, despite steady gains in recent years.
Confidence in U.S. Stock Market is Strong
How do you currently feel about the U.S. stock market’s likely performance
over the next 12 months?
Optimistic
Pessimistic
ALL
AMERICANS
AFFLUENT
AMERICANS
Unsure
48%
31%
21%
69%
24%
7%
Anemic Interest in Investing in Stocks
Compared to 5 years ago, are you more or less interested in investing in stocks?
More interested 27%
39%
ALL AMERICANS AFFLUENT AMERICANSVS
Interest remains
the same 36%
46%

14. [ 1 4 ] U. S . In v e s t o r Pu l s e S u r v e y 2 014
So What Do I Do With My Money?®
Investment Actions to Consider
BlackRock’s U.S. Investor Pulse survey reveals a number of trends.
While Americans have a broad range of positive aspirations for their
future, many are just not actively managing their saving and investing
or building the plans to get themselves on track to achieve their goals.
The Highly Effective Investors are different because they spend the
time to learn, solicit advice when they don’t know, and take action to
leverage opportunities that will get them closer to their goals.
This leaves the question: So what do I do with my money?
BlackRock’s survey provides insights into how you can learn from
other investors and think differently about saving, investing and
planning for your financial future. We encourage you to speak
with your financial professional about these ideas and ways to
incorporate them into your investment portfolio.

15. W h at In v e s t o r s a r e T hink in g [ 1 5 ]
Estimate Your Retirement
Income Using BlackRock’s
CoRI Retirement Indexes
One of the biggest challenges
investors face is knowing just
how much they need to save
to get the income they want
during retirement.
To help address this problem,
BlackRock developed the CoRI
Retirement Indexes. These
indexes can help estimate how
much an investor would need
to have saved today to generate
each dollar of annual income
in retirement, which can help
pre-retirees see more clearly
what they need to do to reach
their goals. Visit our online tool
at blackrock.com to learn more.
RETHINK YOUR BONDS
Cash and bonds play an essential part in everyone’s finances, but with
historically low yields and concerns about the potential for rising rates, these
traditional investments may not help close the retirement income gap. Using
ultra-short duration strategies to move cash off the sidelines and considering
an allocation to flexible, unconstrained bond strategies can help you seek
incremental yield and minimize interest rate risk.
SEEK INCOME IN DIFFERENT PLACES
Today’s environment of historically low yields and heightened volatility has led
investors to ask how to find more income. Striking a prudent balance between
income and risk requires widening the opportunity set, taking a flexible
approach and making sure you don’t overreach.
SEEK GROWTH WITH A MEASURE OF DOWNSIDE
PROTECTION IN UNPREDICTABLE MARKETS
With lifespans increasing and traditional bond yields largely unattractive,
investors with aspirations of a long, comfortable retirement will need to consider
saving for retirement as early as possible, but also think about strategies to
achieve more growth. Stocks are a powerful tool to generate both growth and
income; consider diversified strategies that focus on mitigating risk.
EXPAND YOUR INDEXING
Investors use indexing as a straightforward and cost-effective approach to
achieving their investment goals. Indexing provides instant diversification when
accessed through an exchange traded fund (ETF). ETFs can be used as essential
building blocks for the core of investor portfolios, offering a wide array of
exposures to help capture opportunities.

16. Not FDIC Insured • May Lose Value • No Bank Guarantee
About the Survey
The BlackRock Global Investor Pulse Survey is a major research study of 27,500 interviews in 20 countries executed by Cicero Group,
an independent research company.
This report focuses on the findings in the U.S. where a nationally representative sample of 4,000 Americans between the ages of 25 and 74
and either sole or dual financial decision makers for their households were interviewed using an online survey methodology. Included in the
study was a group of 700 affluent Americans (those with investable assets of $250,000 or more).
Source for all data: BlackRock Investor Pulse Survey, July/August 2014.
The conclusions are intended to provide an indication of the current attitude of a sample of U.S. investors to saving and investing
and should not be relied upon for any other purpose.
Investing involves risk including loss of principal amount invested. Asset allocation and diversification strategies do not ensure
profits in declining markets. Fixed income risks include interest-rate and credit risk. International investing involves special risks
including, but not limited to currency fluctuations, illiquidity and volatility. These risks may be heightened for investments in
emerging markets. This is not intended to be relied upon as a forecast or investment advice, and is not a recommendation, offer
or solicitation to buy or sell any securities or to adopt any investment strategy. The information and opinions contained in this
paper are derived from non-proprietary sources deemed by BlackRock to be reliable, are not necessarily all-inclusive and are not
guaranteed as to accuracy.
Visit blackrock.com, iShares.com or contact your financial professional for a prospectus or summary prospectus, which includes
investment objectives, risks, fees, charges, expenses and other information that you should read and consider carefully before
investing. Investing involves risk, including possible loss of principal. Consult with your financial professional for additional information.
The CoRI Retirement Indexes take into account current interest rates, inflation expectations, life expectancy and other factors.
The CoRI Retirement Indexes do not guarantee future income or protect against loss of principal. There can be no assurance that
an investment strategy based on the CoRI Retirement Indexes will be successful. Indexes are unmanaged and one cannot invest
directly in an index.
©2014 BlackRock, Inc. All Rights Reserved. BLACKROCK and SO WHAT DO I DO WITH MY MONEY are registered trademarks of BlackRock, Inc.
All other trademarks are those of their respective owners.
Prepared by BlackRock Investments, LLC, member FINRA.
Lit. No. INVPULSE-1014R2 2009A-AC-1014 / USR-4664
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