Wheel of Life Comparison Report

(WOL Comp = Wheel of Life Comparison)

Credo uses an analytic framework we call the Wheel of Life (WOL) to measure and describe the wellness of identifiable groups of investors.  A graphical representation of this framework, comparing NEI investors with Fidelity investors is shown below in Exhibit 1.

This analysis compares:

  1. investors who have elected to have Fidelity manage their money; with,
  2. investors who elected to have NEI manage their money.
Exhibit 1. Credo’s Wheel of Life compares Fidelity Investors and NEI Investors

(For a more detailed explanation of Credo’s Wheel of Life framework, Click Here.)

Credo found investors who elect to have NEI manage their savings report lower levels of personal satisfaction on 9 of 10 elements that comprise our socio-cultural measurement framework.  A statistical sign test shows that the probability of the difference that we have measured in the two companies’ Wheels of Life happening by chance alone was p=0.0098.  Less than 1%. We conclude that the difference is real.

In short, investors who have chosen to have NEI manage their money are not as well off, holistically speaking, as investors who elected to have Fidelity manage their money.

Two additional findings are apparent from the analysis and add some interesting perspective:

  1. With respect to community and social relationships, NEI investors’ scores were no different from Fidelity investors’ scores.
  2. With respect to financial literacy, Credo found the largest gap between Fidelity investors and investors who have elected to have NEI manage their investments.

To see a similar analysis with different companies, submit a WOL Comp Report request here:

 

Contact Credo with questions about this research or to discuss this research note.