Investors Foresee Financial Impacts After 2024 Election

Almost all advisors in a CFP Board survey say the election cycle will have some sort of impact on investors’ finances
CFP Board
Image Credit: © Feverpitched | Dreamstime.com

While investors remain optimistic on their strategies for 2024, almost all financial professionals expect the upcoming November election to have some effect on their clients’ financial decisions.

The 2024 CFP Professionals Financial Outlook survey found that 48% of CFP professionals believe their clients have a better outlook on their finances compared to 2023, yet 83% foresee the 2024 election cycle to have at least some impact on investors’ finances and almost half say their clients place significant importance on the election. Specifically, most clients cited anxiety surrounding the election while others worried it would spark volatility in stock prices.

This is as advisors report more discussions with clients regarding retirement (77% of CFPs), inflation (60%), and the U.S. economy (56%).

Still, according to the research, 41% of CFPs say their clients’ financial outlooks have “held steady,” while 10% noticed a decline in financial outlooks from 2023 to 2024.

The CFP Board notes how financial professionals could provide a lifeline for uneasy participants during worrisome moments, and especially for those concerned on how the upcoming election could impact their finances. “CFP professionals are a port in the storm for anxious investors,” said Kevin Roth, Ph.D., managing director of Research at CFP Board. “Whether a client is contemplating a major life change or a relaxing vacation, the trusted advice of a CFP professional is more important than ever.”

As a result, financial planners are focusing on the long-term when preparing for their clients’ financial wellbeing, including developing/revising a financial plan (62% of CFPs), saving for retirement (60%), and investing in the stock market (32%).

Financial planners are also advising clients to make changes on their investments, given rising interest rates. Forty-one percent of respondents said they advised clients to move funds into investments that pay higher interest rates, such as high-yield money market funds and certificates of deposit, and 28% are recommending clients reduce exposure to high-interest debt. Three-quarters are telling their clients to prioritize saving for retirement or investment accounts, while half recommend reducing or eliminating debt.

Other top 2024 advice includes saving for future known expenses (19%), establishing or adding to an emergency savings account (18%), and taking advantage of workplace benefits (17%).

SEE ALSO:

Amanda Umpierrez
+ posts

Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.

Related Posts
ERISA's Next 50 Years
Read More

ERISA’s Next 50 Years

As defined contribution plans have taken over for defined benefit plans over the first 50 years of the landmark legislation, enabling increased access to 401(k)s, more personalization, better use of auto features and retirement income are among the key issues ERISA is expected to face looking forward.
Total
0
Share