4 minute read
Americans Need Financial Guidance – And Are Looking for Help
Good news! Survey shows majority trust advisors
Courtesy of Million Dollar Round Table (MDRT)
It’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.
1: Majority of Americans Trust Advisors
Sixty-nine percent of Americans reported they have at least some trust in financial services professionals, and 27% said they have a lot of trust in them. While this financial climate continues to be a pain point for many consumers, they are willing to put their faith in an advisor when it comes to receiving financial guidance.
This indicates that current market conditions are creating an opportunity for advisors to forge genuine connections with clients and prospects, creating more long-term, mutually beneficial relationships. Advisors should invest time in having more in-depth discussions with clients about how they are feeling currently and their real financial challenges and provide them with services and solutions that are tailored to their unique financial situations.
2: Americans Witnessing Stagnant Financial Standings
Only 24% of Americans say their financial situation improved since last year, while 41% say they’re in the same place as they were one year ago. This lack
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.
3: Many Americans Need Investment Guidance
While the majority of consumers are aware of their need for health and income protection policies, they aren’t as confident in other financial investment products. Only 32% of Americans consider corporate bonds to be worthwhile investments and only 44% consider annuities worthwhile — in comparison to 75% for life insurance and 80% for health insurance.
This is an opportunity for advisors to go beyond the more common investment opportunities and explain how other investments could contribute to a well balanced portfolio. Providing a proactive and simple explanation of potential investments will help ease anxiety during clients’ decision-making process both now and in years ahead.
4: Americans’ Financial Priorities for the Year are Divided
Forty-three percent of Americans reported that their main financial focus for the year will be saving for future goals, with 55% of 18-39 year olds prioritizing saving for the future, compared to 42% of 40-59-year-olds. On the other hand, 41% of consumers reported that their main financial focus will be spending on essential needs, such as gas, bills, groceries, childcare, etc., with 30% of 18-39-year-olds, compared to 52% of Americans 60 and older.
Though the responses were varied, there was an overarching message: consumers are struggling and need advisors to help them build guardrails around their finances. The fluctuations in the economy have led many consumers to make hard decisions around their finances, creating an urgent need for advisors to work with clients on their budgets and overall financial plans.
It can be overwhelming for consumers to try to account for all aspects of their finances and to know all of their options, so having an advisor’s support will help them be more confident about financial decisions now than ever before.
Article provided by MDRT, the Premier Association of Financial Professionals®. For more information, visit mdrt.org and follow them on Twitter at @MDRtweet.
Survey Link: https://bit.ly/46vKYIm
Publisher’s Note:
To find a financial subject matter professional to partner with, reach out to
The Collaboration Center @
657-229-2849
