FI N A N C E
Americans Need Financial Guidance – And Are Looking for Help Good news! Survey shows majority trust advisors Courtesy of Million Dollar Round Table (MDRT)
I
t’s no surprise that uncertainty in the financial market continues to weigh on the minds of many Americans. To better understand the extent of its impact on consumers, MDRT conducted a survey on Americans’ views on financial advising, investments and their financial health. The results from the MDRT survey revealed insights into consumers’ mindsets, giving advisors a deeper understanding of some of their clients’ behaviors and how they can develop financial plans that address concerns about the current market.
TREKKING THROUGH FINANCIAL UNCERTAINTY SHAKY ECONOMIC
56%
EXPECTATIONS Americans continue to grapple with financial concerns and most have a negative outlook on the economy in the coming year. Many of them also lack recommended savings for a financial emergency.
of Americans feel very or somewhat negative about the economy in the coming year.
With robo-advisors Without an advisor
48%
50%
With human advisors
of Americans only have enough savings for three months or less.
37% 60%
Can support themselves for less than one month
Can support themselves for longer than a year
31% of women 18% of men
17% of women 26% of men
TRUSTING THE PROFESSIONALS Whether or not they work with financial advisors, Americans recognize the value of their expertise, but a lingering gender gap shows advisors have work to do when it comes to gaining women’s trust.
of growth clearly aligns with the 48% of Americans who reported that they only have enough savings to support themselves for three months or less, with women being less likely to support themselves without income for longer periods of time. Thirty-one percent of women stated they only have enough savings to support themselves for less than one month, compared to 26% of men who can support themselves for longer than a year. To help consumers get back on an upwards trajectory in this financial climate, they need expert guidance on the market. Advisors should consider providing consumers with a weekly overview of current market trends and sharing their recommendations for navigating an unstable market. Having a consistent explanation of the ins and outs of the changes in the market will allow consumers to be ahead of the game and boost their financial standing.
1: Majority of Americans Trust Advisors 15% 69% Sixty-nine percent of of Americans have at least some trust in Americans reported they have financial advisors, with 27% of Americans reporting they have a lot of trust in advisors. at least some trust in financial of Americans said they have not that much or no trust services professionals, and 27% at all in financial advisors. Have some or a lot of said they have a lot of trust in trust in advisors With human advisors 93% them. While this financial climate With robo-advisors 95% continues to be a pain point for Without an advisor 55% 66% of women many consumers, they are willing 74% of men to put their faith in an advisor 3: Many Americans Need when it comes to receiving Investment Guidance financial guidance. While the majority of challenges and provide them with This indicates that current market consumers are aware of their need for services and solutions that are tailored to conditions are creating an opportunity health and income protection policies, their unique financial situations. for advisors to forge genuine connections they aren’t as confident in other financial with clients and prospects, creating investment products. Only 32% of 2: Americans Witnessing more long-term, mutually beneficial Americans consider corporate bonds Stagnant Financial Standings relationships. Advisors should invest to be worthwhile investments and only Only 24% of Americans say their time in having more in-depth discussions 44% consider annuities worthwhile — in financial situation improved since last with clients about how they are feeling comparison to 75% for life insurance and year, while 41% say they’re in the same currently and their real financial place as they were one year ago. This lack 80% for health insurance. 34 | CALIFORNIA BROKER
CalBrokerMag.com
NOVEMBER 2023
