WITH INHERITANCE IN THEIR FUTURE, BABY BOOMERS GIVE STOCKBROKERS COLD SHOULDER; RELY ON TV, NEWSPAPERS FOR FINANCIAL INFORMATION

New KN study shows all-news TV channels at parity with broadcast network news as sources of financial learning

Menlo Park, CA; May 1, 2003: As the Baby Boom generation tries to nurture a retirement nest egg and awaits what for some will be an inheritance windfall, new research by Knowledge Networks - the leader in innovative, high-quality marketing information - indicates that conventional media, advisers, and financial services retain a powerful influence on how Boomers approach money management.

To understand Boomers' potential wealth and approaches to financial issues, Knowledge Networks sought answers from over 1,200 Boomer-age members of its projectable Internet panel of consumers nationwide. The representative survey was developed in collaboration with the editors of American Demographics.

Results of the Baby Boomer survey.

The data reveal that, among those age 39 to 57 (the Baby Boom generation), 24% say they have already received an inheritance of some kind, and 26% expect to receive a future inheritance. Nearly half (44%) of those who anticipate inheriting money from their parents say the amount will be less than $25,000, while one-third (33%) say their parents' estates will be above $50,000.

The research also reveals that about half (48%) of Boomers have made an online purchase of some kind, and nearly one-fourth (22%) maintain an online bank account. But fewer (17%) say they have access to an online investment portfolio, and 6% have used an online broker.

In addition, Baby Boomers are relying on traditional media - primarily television and newspapers - for financial news. On a weekly basis, 41% turn to newspapers to learn about money matters; 41% turn to TV; 28%, radio; and 27%, the Internet. By contrast, 29% say they consult with family or friends about money at least once a week.

Among those who get financial information from TV at least once a week, roughly equal portions say they turn to all-news channels (62%) and to broadcast network newscasts (60%). In addition, as income and/or expected inheritance increase, consumers are much more likely to get money news from all-business TV networks.

On the Internet, Boomers are as likely to rely on ISP sites (33%) - such as Yahoo.com or AOL.com - for financial news as all-news sites (35%).

For in-person investment advice, 34% of those who expect an inheritance say they would consult a financial planner about managing their money; 22% would turn to an accountant; 22%, an attorney; and 10%, a banker. The stock market's difficult times have apparently made an impression on these Boomers; just 6% say they would ask a stock broker for advice on making the most of their inheritance.

Knowledge Networks is the leading provider of innovative, high-quality marketing information. The company brings together an exclusive set of consumer research capabilities, including the only Web-enabled research panel created using a nationally representative RDD sample. In conjunction with its expertise in brands, media, advertising, and analytics, Knowledge Networks uses these resources to pinpoint specific steps clients can take to maximize efficiency in reaching and selling to consumers. Other Knowledge Networks specialties include research on pricing, product configuration, advertising, public opinion, health, and social issues.