First Command Reports: Savings Habit Strongest in Families with a Financial Advisor

The First Command Financial Behaviors Index® reveals that three out
of four middle-class service members who work with a financial advisor
contributed to a savings or retirement account during the first quarter

FORT WORTH, Texas–(BUSINESS WIRE)–Career military families who work with a financial advisor are out
saving their do-it-yourself counterparts, reinforcing the value of
working with a professional.

The First Command Financial Behaviors Index® reveals that 75 percent of
middle-class military families (commissioned officers and senior NCOs in
pay grades E-5 and above with household incomes of at least $50,000) who
work with a financial advisor contributed to savings and retirement
accounts during the first quarter. That’s 32 points higher than those
who do not use an advisor.

“These results emphasize the significant contributions financial
advisors make in coaching service members to improve their money
behaviors,” said Scott Spiker, CEO of First Command Financial Services,
Inc. “Financial advisors are helping their career military clients take
the kinds of positive actions that help consumers feel more confident in
their financial future.”

Service members who work with a financial advisor are more likely to
contribute to:

  • Short-term savings (79 percent versus 53 percent for those without an
    advisor). Monthly median contributions for the two groups are $500.
  • Long-term savings (70 percent versus 24 percent). Monthly median
    contributions for the two groups are $357 and $250, respectively.
  • Retirement (77 percent versus 51 percent). Monthly median
    contributions for the two groups are $500.

Looking ahead, military families who use financial advisors are more
likely than others to say they will increase savings in the months ahead
(36 percent versus 28 percent). Their strong savings efforts are helping
them feel more confident than their do-it-yourself colleagues. They are
more likely to believe their financial situation will improve in the
next year (62 percent versus 36 percent) and in their ability to retire
comfortably (62 percent versus 30 percent).

The savings behaviors and intentions of career military families
remained steady in the first quarter. These results were reflected in
the overall Index score of 136, which was statistically unchanged from
the end of 2015. (The Index is set to a benchmark of 100, which was
assigned when the Index was launched in 2008.)

“Maintaining strong money habits will be critical for our career service
members and their families now and in the times ahead,” Spiker said.
“For several years they have experienced the impact of cuts to military
personnel costs as part of sequestration and defense downsizing. They
are dealing with another year of reduced pay raises and housing
allowances and proposals to overhaul TRICARE. And they are striving to
understand the impact of a new military retirement system, which will
cut the traditional pension by 20 percent. Despite these multiple
sources of anxiety, military families with a financial advisor by their
side continue to maintain confidence in their financial future.”

About the First Command Financial Behaviors Index®

Compiled by Sentient Decision Science, Inc., the First Command Financial
Behaviors Index® assesses trends among the American public’s
financial behaviors, attitudes and intentions through a monthly survey
of approximately 530 U.S. consumers aged 25 to 70 with annual household
incomes of at least $50,000. Results are reported quarterly. The margin
of error is +/- 4.3 percent with a 95 percent level of confidence. http://www.firstcommand.com/fbi/

About Sentient Decision Science, Inc.

Sentient Decision Science was commissioned by First Command to compile
the Financial Behaviors Index®. SDS is a behavioral science and
consumer psychology consulting firm with special vertical expertise
within the financial services industry. SDS specializes in advanced
research methods and statistical analysis of behavioral and attitudinal
data.

About First Command

First Command Financial Services and its subsidiaries, including First
Command Advisory Services, First Command Bank and First Command
Financial Planning, assist American families in their efforts to build
wealth, reduce debt and pursue their lifetime financial goals and
dreams—focusing on consumer behavior as the first and most powerful
determinant of results. Through knowledgeable advice and coaching of the
financial behaviors conducive to success, First Command Financial
Advisors have built trustworthy, lasting relationships with hundreds of
thousands of client families since 1958.

First Command Financial Services, Inc., is the parent of First
Command Financial Planning, Inc. (Member
SIPC,
FINRA),
First Command Advisory Services, Inc., First Command Insurance Services,
Inc. and First Command Bank. Financial planning services and investment
products, including securities, are offered by First Command Financial
Planning, Inc. , a broker-dealer. Financial planning and investment
advisory services are offered by First Command Advisory Services, Inc.,
an investment adviser.
Insurance products and services are offered
by First Command Insurance Services, Inc., in all states except Montana,
where as required by law, insurance products and services are offered by
First Command Financial Services, Inc. (a separate Montana domestic
corporation). Banking products and services are offered by First Command
Bank. In certain states, as required by law, First Command Insurance
Services, Inc. does business as a separate domestic corporation.
Securities products are not FDIC insured, have no bank guarantee and may
lose value. A financial plan, by itself, cannot assure that retirement
or other financial goals will be met. First Command Financial Services,
Inc. and its related entities are not affiliated with, authorized to
sell or represent on behalf of or otherwise endorsed by any federal
employee benefits programs referenced, by the U.S. government, or the
U.S. armed forces.

Contacts

First Command Financial Services, Inc.
Mark Leach, 817-569-2419
Media
Relations
msleach@firstcommand.com