NEW YORK, NEW YORK, October 28, 2002 – With consumer spending driving a major portion of the economy, consumer confidence hovering at historic lows, and economists' warnings that demand may be dampening on the verge of the holiday season, MONEY magazine has just released a major national survey of affluent Americans to gauge the mood of these most affluent consumers. Their hopes, their worries about money, their predictions about terrorism and the economy, and even their definition of success are all revealed in this year's Americans and Their Money Survey by MONEY magazine.

The survey, conducted by MONEY with RoperASW is one of the largest and most detailed of its kind and paints a complex picture of the most affluent 24% of American households. On one hand, they glumly predict that inflation, unemployment, and mortgage rates are likely to rise, but on the other, they say they're better off than they were two years ago, expect the stock market to rise in the next year and the economy to experience a boom like the one in the late 1990s within the next decade.

"This is a very, very influential group of consumers and investors," said MONEY Executive Editor Sheryl Tucker, "and I think it's worth taking a detailed look their mood as we approach the holidays." She added, "More broadly, it is instructive to see how the affluent in America define their success, how they manage their money, and what they worry about most."

FEARS OF TERRORISM, WORRIES ABOUT THE ECONOMY AND DEFICIT

The largest group (22%) of those MONEY surveyed said that controlling deficit spending should be the single most important economic priority for elected officials in Washington today, followed by reforming the US health system (17%) and simplifying the income tax system (13%). A majority (69%) said they expect it's either "very likely" or "somewhat likely" that a terrorist attack will disrupt the U.S. financial system in the next two years.

Key expectations for the next twelve months include:

• Four in ten (42%) said they expect unemployment will rise over the next 12 months (36% said the rate will stay the same and only 21% think it will fall)
• Four in ten (42%) also think, however that the stock market will rise, compared to 29% who predict it will stay the same and 28% who think it will fall
• Most (56%) expect inflation to rise; only 39% expect it to stay the same
• A great majority (76%) believe the value of their primary residence will rise, while 19% expect it will stay the same and only 4% expect the value to fall
• Most (56%) predict mortgage rates to rise

SMARTEST AND DUMBEST MONEY MOVES and HOW TO GET RICH IN AMERICA

• Among the smartest money moves they'd ever made, those surveyed said: Bought a house (25%), Started saving for retirement early (21%), and paid off debts (16%)
• The dumbest: Got into debt (28%), didn't sell technology investments before the dot-com bubble burst (11%), started saving for retirement too late (8%)
• The best way to get rich in America today? Invest in real estate (19%), followed by: inherit money (14%) and start a business or invest in stocks or funds (both 12%)

MONEY, SEX, SUCCESS, AND HAPPINESS

• When asked, which do you think about more often—sex or money? 24% picked sex, 37% picked money, and 24% pick both equally.
• But when asked whether they enjoyed sex or money more, 42% picked sex, 17% picked money, and 30% said they enjoyed both equally
• Most surveyed said they were successful because they were happy (63%), while only 34% said they were happy because they were successful

AT HOME: MONEY AND RELATIONSHIPS

Financial decision-making is shared in a majority of affluent American households. Most of those surveyed who were married or living with a partner said:

• They trust their spouse or partner "very much" (64%) or "somewhat" (30%) with managing money; Only 6% said "not at all."
• The largest group, 44%, said, "We both manage the investments in our household," and a majority 55% said that they didn't have separate checking, saving, or investment accounts.
• The vast majority of those with separate accounts (90%) said that they didn't have a checking, savings, or investment account that their spouse or partner didn't know about. Only 9% said they did.
• Most (79%) said they hadn't ever misled their spouse or partner about how much they'd paid for something; 19% admitted they had.

RETIREMENT: THE ULTIMATE BIG TICKET ITEM

• Almost twice as many of those surveyed identified retirement planning as their "most pressing financial concern" as those who said supporting their family or accumulating wealth were their most pressing money issues.
• When asked, "For what, in particular, are you investing?" fully 70% said retirement

This mail study was conducted for Money magazine by RoperASW among a national sample of 1,767 adults 18 or older who are financial and/or investment decision-makers in households with $75,000 or more in annual income. The surveys were collected from June 21 through August 7, 2002. The sample was weighted by demographic factors including age, gender, marital status and geographic region to ensure reliable and accurate representation of adults in U.S. households with an annual income of $75,000 or more. Results based on the entire sample of 1,767 adults are projectable to the entire adult population in the United States, with a sampling error of ±2.5 percentage points. Results based on subgroups have a larger sampling error.

MONEY is published by Time Inc. With a circulation of 1.9 million and a total readership of nearly 8 million, MONEY is the largest financial management publication in the world. For more information, visit CNN/MONEY Online at www.money.com, where MONEY's famous personal finance tools and commentary meet the breaking financial news coverage and analysis of CNN Financial News.

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To arrange an interview or for more information, please contact: Amy Mahfouz at 212-522-6282 or amy_mahfouz@timeinc.com Amy Wolfcale at 212-522-2599 or amy_wolfcale@timeinc.com