Investors are optimistic despite looming election anxiety

WASHINGTON, D.C., March 19, 2024 — A survey of CFP professionals found that American investors are overwhelmingly optimistic, with 6 in 7 CFP professionals reporting that their clients have a positive outlook for 2024 despite ongoing economic uncertainty.

The 2024 CFP^® Professionals Financial Outlook Survey, the latest edition of the CFP Board Consumer Sentiment Surveys, also found that nearly half of CFP^® professionals (48%) say their clients’ outlook is more optimistic than in 2023. Even with the optimism, the upcoming U.S. elections weigh heavily on investors’ minds. Eighty-three percent of CFP^® professionals’ clients expect the 2024 election cycle to have at least some impact on their financial decisions.

“The value of working with a competent, ethical financial advisor is even higher during times of economic uncertainty,” said CFP Board CEO Kevin R. Keller, CAE. “No matter what’s ahead, Americans who work with a CFP^® professional can face the future knowing that the financial advice they receive is in their best interest.”

Clients delay major financial decisions but hold steady on investments

Optimism is making Americans bullish on investing this year. Nearly 3 in 5 CFP^® professionals say their clients are more likely to start to invest or increase their level of investment because of their financial outlook.

When meeting with CFP^® professionals, investors want to discuss issues including preparing for retirement (77%), dealing with inflation and rising prices (60%) and understanding the national economy (56%). During their conversations, CFP^® professionals are recommending a range of strategies, including developing or revising a financial plan (62%), prioritizing retirement savings (60%) and investing in the stock market (32%).

Given the high-interest-rate environment, 41% of CFP^® professionals are advising clients to move funds into high-yield investment accounts (e.g., market funds and certificates of deposit [CDs]).Twenty-eight percent of CFP^® professionals are counseling clients to reduce their exposure to high-interest debt.

Clients’ positive sentiment makes them more likely to take a vacation (as reported by 43% of CFP^® professionals), retire (35%) and get medical care (21%). However, many are delaying major life events or purchases. Of the CFP^® professionals surveyed, 44% say their clients are less likely to purchase a home, 20% say their clients are less likely to start a family and 12% say their clients are less likely to get married.