At a time when many Americans feel mistrustful of the financial industry, financial planners are earning high praise from the clients they have helped during the recent economic turmoil.
Three quarters of middle-class Americans who work with a financial planner say they are trustful of planners in general and 90 percent trust their own personal financial planner, according to recent survey results from the First Command Financial Behaviors Index™. In contrast, less than half of respondents without a financial planner express feelings of trust toward financial planners.
Financial planners are making a real difference in the lives of middle-class families. By providing timely advice and services during this period of economic turmoil, these financial professionals are earning the trust of their clients and living up to the highest standards of their industry.
The 90 percent of respondents who trust their own personal financial planner attribute that trust to a variety of reasons, including:
The majority of these consumers credit their personal financial planner with a variety of positive attributes. They describe their planner as:
These findings are also reflected in the broader Financial Behaviors Index, which reveals that consumers who have been working with a financial planner during the economic crisis are more comfortable with their savings and debt. Year-end results for 2009 reveal that the percentage of Americans with a financial planner who were extremely or very comfortable with the amount they had in savings improved seven points across the year to end the fourth quarter at 22 percent. Comfort with debt improved five points for a year-end finish of 35 percent. In contrast, respondents without a planner reported three-point gains in their comfort with savings and debt, which ended the year at 12 percent and 25 percent, respectively.
Meanwhile, 15 percent of middle-class Americans who don’t have a planner say they are likely to engage one in 2010. Respondents who already work with a financial planner reveal that they relied on personal relationships to guide them when picking their advisor. Almost half said they chose their financial planner based on a recommendation from a friend or family member or a general referral. One in five selected a friend or family member as their planner.
Personal relationships based on trust are an essential part of successful financial planning. Americans are looking to put their trust in a personal coach, someone who is committed to listening to their needs and offering a sense of security and hope. These survey results and our experience serving American consumers tell us that the typical middle-class family is looking for an attentive and patient financial advisor who is committed to providing honest guidance and advice. This is the kind of professional that consumers are willing to trust with their long-term financial goals and lifetime dreams.
About the First Command Financial Behaviors Index™
Compiled by Sentient Decision Science, LLC, the First Command Financial Behaviors Index™ assesses trends among the American public’s financial behaviors, attitudes and intentions through a monthly survey of approximately 1,000 U.S. consumers aged 25 to 70 with annual household incomes of at least $50,000. Results are reported quarterly. The margin of error is +/- 3.1 percent with a 95 percent level of confidence. www.firstcommand.com/research
About Sentient Decision Science, LLC
Sentient Decision Science was commissioned by First Command to compile the Financial Behaviors Index™. Sentient is a full-service market research firm with special vertical expertise within the financial services industry. Sentient specializes in advanced research design and statistical analysis of behavioral and attitudinal data.
About First Command
First Command Financial Services and its subsidiaries, including First Command Bank and First Command Financial Planning, assist American families in their efforts to build wealth, reduce debt and pursue their lifetime financial goals and dreams—focusing on consumer behavior as the first and most powerful determinant of results. Through personalized financial plans that emphasize accumulating wealth while reducing risk, First Command Financial Advisors have established lasting relationships with hundreds of thousands of client families since 1958.
First Command Financial Services, Inc. is the parent company of First Command Financial Planning, Inc. (Member SIPC, FINRA) and First Command Bank (Member FDIC). Financial planning services and investment products, including securities products are offered by First Command Financial Planning, Inc. Insurance products and services are offered by First Command Financial Services, Inc. Banking products and services are offered by First Command Bank. Securities products are not FDIC insured, have no bank guarantee and may lose value. In certain states, First Command Financial Services, Inc. is a separately registered domestic corporation and does business in California as “First Command Insurance Services.” A financial plan, by itself, cannot assure that retirement or other financial goals will be met.