For local residents, financial success means family and friends

Merrill Edge Report Q & A

By: Whitney Trimble

Chicago residents believe success is the ability to provide for their families and ensure the long-term financial security of their households as opposed to accumulating wealth and professional achievements.
This is one of the primary findings in a report recently released by Merrill Edge that focuses on the perceptions Americans have of what it means to be successful, and how this factors into their daily financial habits and planning for the future. Merrill Edge Vice President, Whitney Trimble, answers questions about what drives financial success for local residents.

Q. What is the key indicator of how Chicago residents are redefining success?
The recent Merrill Edge Report found that 78 percent of Chicago residents say providing for their family is the most essential factor in how they define success, compared to 73 percent of all Americans. Nearly a third of Chicagoans reported that a close-knit social circle is the biggest contributor to their success. Additionally, 38 percent of Chicagoans noted that making a difference in the lives of those in need is a vital component of defining success.
Conversely, only 14 percent of Chicago residents believe being a millionaire is essential to success today. This reflects a growing trend where Americans are less inclined to highlight monetary wealth as a key indicator of success as opposed to strong personal relationships, the ability to provide for their families, and making an impact in their communities.

Q. How does this factor into Chicagoans’ financial habits?
Family experiences also influence Chicagoans’ financial behaviors. Compared to the national average and those surveyed in other cities, Chicago residents are most likely to emulate their parents by following in their footsteps (53 percent) versus learning from their mistakes (38 percent).
When it comes to taking risks, Chicago residents aren’t likely to sacrifice their job for their wanderlust. Those in Chicago say taking a year off work to travel is risky, with 34 percent feeling this way, compared to the national average of 28 percent who say so.
Only 38 percent of Chicagoans see not investing in a 401(k) as risky, less than residents of all other cities surveyed. This sentiment toward savings strategies could be why 31 percent of Chicago residents believe leaving work before the age of 50 is risky. Thirty-four percent of residents also say taking a year off from work in order to travel is risky.

Q. What does this outlook mean for the future?
In Chicago and throughout the country, Americans are redefining what it means to be successful. No longer is being a millionaire considered an element of success. As mentioned, only 14 percent of Chicago residents believe being a millionaire is the key to achieving success. Rather, it’s more important for them to have a positive impact on their families and on their community.

Q. Heading into the New Year, what advice would you offer Chicago residents based on the findings of the Merrill Edge Report?
The path toward success is not the same for everyone, though clearly Chicago residents prioritize their family and equate providing for them as being successful. Their “family-first” mentality is evident, and it’s important to factor this mindset into a short- and long-term financial savings plan to help ensure their financial security.