A new poll from the Certified Financial Planner (CFP) Board revealed 83% of CFP clients believe the election results will have an effect on their financial portfolios and their general financial decisions. CFP Board CEO Kevin Keller joins Wealth! to discuss these results.
Keller acknowledges that while the economy has demonstrated strength, "consumer sentiment has been lagging behind." Keller highlights a notable distinction: individuals who work closely with financial advisors are "optimistic about the future and about the economy." According to Keller, those who collaborate with financial planners have long-term strategies in place that account for volatile market conditions like those seen today. This, he says, helps to ease uncertainty and instill confidence among investors.
Keller advises investors to have a long-term strategy and refrain from "short-term changes" based on daily volatility.
For more expert insight and the latest market action, click here to watch this full episode of Wealth!
Editor's note: This article was written by Angel Smith
Video Transcript
BRAD SMITH: So far this election season, poll after poll has shown the presidential race between President Biden and former President Trump incredibly tight here. The Real Clear polling-- for RealClearPolitics rather, averaging just showing President Trump leading by just 6/10 of a percent. So what does that mean for your portfolio?
A new poll from the Certified Financial Planner Board shows that 83% of CFP professionals clients expect the election cycle to have some impact on their financial decisions. For more on this, we have CFP Board CEO Kevin Keller here to help us explain a little bit more. Kevin, thanks so much for joining us in studio. Fresh from Washington DC, I mean, you probably could have just sat next to Jean and had that conversation as well.
KEVIN KELLER: Absolutely. He's just two blocks from my office. It's great to be with you on a breaking newsday.
BRAD SMITH: Absolutely. All right. So one of the huge things that people are trying to think about in an election season, in an election year, how they should be thinking about the polling with relation to their own financial planning as well.
KEVIN KELLER: You know, here's the thing that the research showed. You know, last year was by all means 3 million new jobs, the economy was up, and yet consumer sentiment has been lagging behind and today isn't going to help that at all. But what was really interesting in the research that we did was that clients of CFP professionals are optimistic, 5 out of 6 of them are saying that they're really optimistic about the future and about the economy.
And I think what that means is if you're working with a CFP professional, you're planning a long-term plan. You're putting in place a plan for the future. And that plan is going to look at ups and downs. It's going to plan for volatility like we're having, and I think that's one of the key takeaways is that clients of CFP professionals are more confident in their plan and they understand that there'll be volatility along the way.
BRAD SMITH: Yeah. It's interesting. You mentioned consumer confidence, their assessment, at least in the most recent reading here of the present situation improved in March, but they also became more pessimistic about the future. Those comments from Dana Peterson chief economist at the Conference Board and good friend of Yahoo Finance as well here. And it varies, of course, as you get into different groups and quartiles.
But all of these things considered, when you are planning for an environment trying to factor in the likelihood of a perceived recession, how do you look past the recession and through to those major goals that you've set up as well?
KEVIN KELLER: Yeah. I think that's part of what a certified financial planner will do, when you're working with one, is put in place a long-term plan and then revisit that plan along the way. As Ross said earlier on the show, he was talking about his auntie. Am I going to be OK, right? And he's like yes, you know, you are but working with an advisor who's taking a look at your whole life, the holistic view of a person's financial life I think prepares you for the volatility and allows you to make adjustments along the way.
BRAD SMITH: And we're taking a look at some of the survey key takeaways here as well, and one of the things that I did spot within this was the remaining optimistic, a lot of your pro clients remain optimistic despite some of this ongoing economic uncertainty here. We talk about-- and let's bring this full circle to what you mentioned at the top, today's economic data and how that can be a jolt of uncertainty. What then do you tell clients even amid those times?
KEVIN KELLER: Look, we know that this was a survey of CFP professionals. They have clients who are Democrats, they have clients who are Republicans. And so the big takeaway is you stay focused on the future, make adjustments as you go along, don't make short term changes like Ross's auntie was talking about. Don't make short term changes just because of news of the day. Keep focused on the long run.
BRAD SMITH: Kevin, thank you so much for taking the time here with us in studio today. Appreciate it.
KEVIN KELLER: Absolutely. Great to be with you.
BRAD SMITH: Absolutely. CFP Board CEO.
