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(StatePoint) Three quarters of Americans (74%) are optimistic about their financial futures despite recent market volatility and uncertainty, according to new research.
Capturing the goals, challenges and feelings of North Americans regarding their finances, research for “The Pulse of North America” report was conducted by Edward Jones and Cerulli Associates during April’s increased market volatility. An encouraging 79% of respondents indicated they are on track to achieve or have already achieved a financially fulfilled life.
“Sentiment from our own clients confirms this,” said David Gunn, principal, head of U.S. and Canada Business Units at Edward Jones. “In the half a million conversations our financial advisors have had with clients in the past five months, only a quarter of our clients highlight financial stress. This reflects the power of deep, personal, trusting relationships and holistic financial advice.”
Recent volatility impacts, but does not derail, financial fulfillment
Despite 49% of respondents indicating that inflation is a source of financial stress, Americans remain steadfast in the pursuit of financial fulfillment. They define fulfillment as having the freedom to pursue their passions (46%), make a better life for themselves and their families (42%), and have security and protection from unforeseen events (41%).
To become more financially fulfilled, Americans are most willing to change their discretionary spending habits (45%), pay off their debt (33%), and improve their financial literacy (28%). This flexibility will help them tackle potential obstacles, including rising living costs (59%), unexpected financial setbacks (35%), and insufficient income or savings (27%). Nearly two-thirds of respondents (63%) indicated they would need to earn a $150,000-plus salary annually to achieve financial freedom.
Americans report optimism and progress relative to personal benchmarks
When it comes to tracking financial progress, only 18% of Americans benchmark themselves against their own goals and plans rather than those of others, while 33% primarily compare themselves to their peers, 22% to their significant others, and 19% to their colleagues.
Respondents indicated that they are tracking confidently against financial and other life goals, reporting that they are on par with or ahead of others when it comes to specific objectives, such as achieving financial stability (88%), travel goals (84%), financial literacy (83%), saving for retirement (80%), and achieving homeownership (78%).
“Even with heightened market volatility and economic uncertainty, American investors have stayed the course with their portfolios and long-term plans,” added Gunn. “They are making meaningful progress by keeping the future in mind, while expressing willingness to pivot in real time with the help of a financial professional.”
The role of financial advisors in pursuing financial fulfilment
While 57% of DIY investors have a financial plan, this number increases to 77% for Americans who regularly engage with a financial advisor.
Those working with a financial advisor are doing so to manage financial risk (28%), seek a second opinion on financial decisions (26%), or based on recommendations from family members or other professionals (25%). Americans who regularly work with a financial advisor are more likely to feel optimistic about their financial future than those who manage their finances on their own (79% vs 71% respectively).
