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Salt Lake City is Most 'Fiscally Fit'
BLOOMINGTON, Ill. -- Fewer than half of American households are taking proper steps today to prepare for a secure financial future, according to State Farm Life Insurance Co.'s "Fiscally Fit Cities Report." The first study of its kind, the report provides a "check-up" of consumer personal financial health, city-by-city.The report measures citizens in 50 metropolitan areas on total fiscal fitness, which includes such criteria as consumer investments -- percentage of households with IRAs, 401(k)s, savings accounts and such -- as well as percentage of households that have life insurance and exhibit quality of life characteristics such as being nonsmokers and physically active.Topping the list is Salt Lake City, followed by Portland, Ore.; Tampa-St. Petersburg-Clearwater, Fla.; Pittsburgh; Orlando, Fla.; Minneapolis-St. Paul; Fort Lauderdale, Fla.; Seattle-Bellevue-Everett, Wash.; Indianapolis; and Phoenix-Mesa, Ariz.Although the top 10 cities rank high comparatively in retirement investments, quality of life and life insurance coverage, the report finds significant areas of vulnerability and gaps of coverage in financial planning. In particular, none of the cities claimed higher than 47% of households with life insurance."The findings reveal that citizens in the top ten cities are moving in the right direction to protect their assets with short-and long-term investments," says Susan Waring, senior vice president and chief administrative officer of State Farm Life. "What is missing in many households across America is a holistic approach to personal finance including life insurance coverage -- which keeps families from having to tap into savings in the case of an unforeseen death, ensuring a brighter future for the surviving family."Another surprising finding was that areas with high household incomes are not saving money and protecting assets as well as other communities. Of the top 10 cities identified in the report, only Minneapolis-St. Paul is in the top 10 of median household income. However, Orlando, Ft. Lauderdale, Tampa and Pittsburgh ranked high despite their ranking in the bottom quarter of median household income in the top 50 metro areas."This study does not follow the popular belief that the 'rich get richer,'" says Bert Sperling, president of Sperling's BestPlaces. "Wealthier areas tend to spend more on real estate and are less disciplined in saving money and purchasing life insurance to protect their future relative to more average income cities."Study highlights include:Pittsburgh tops the list in percentage of households with life insurance (46.9%), but more than half of its residents are uninsured.In terms of having home value in line with income, Fort Worth-Arlington has the highest income-to-home value ratio at 47.37%.Miami can claim the highest savings to income ratio (164.9%), meaning that many residents there can take the heat if income drops or expenses rise.San Jose boasts the highest total savings with an average of $78,934. It also has the highest average of stocks ($12,253) and savings in retirement accounts ($30,070).Other savings leaders include Nassau-Suffolk, N.Y. with the highest average savings in CDs ($11,492), savings bonds ($1,161) and mutual funds ($24,753).Citizens of Indianapolis are happy together with the highest rate of marriage (58.4%).Phoenix residents are trim with a lowest body mass index average of 24.9%, yet have one of the lower rates of physical activity.San Francisco residents are the most active, exercising an average of 42 minutes per day.State Farm insures more cars than any other insurer in North America. Its 17,000 agents and 72,000 employees serve nearly 73 million auto, fire, life and health policies in the United States and Canada.Visit State Farm Life Insurance Co.: www.statefarm.com"