Seventy-one percent of financial advisors and 57% of investors today feel more negative stress compared with a year ago, according to research recently released by the Financial Planning Association, Janus Henderson Investors and Investopedia.
The results indicated that investors’ chief concerns centered on how to maintain lifetime income that meets expenses, but also showed they were not confident in their own financial knowledge, leading to financial insecurity and increased stress levels.
Financial advisors’ top stressors included both maintaining profitability and growth and meeting business goals.
Other findings showed a significant connection between stress and feelings of financial insecurity. Among low-stress investors, 77% said they felt financially secure ― a number that plummeted to only 39% among respondents who reported high stress.
“As a financial advisor who operates a financial planning practice, I personally cope with stress and the impact it has on me and my business, but I also see the impact stress has on my clients ― especially stress caused by financial concerns,” Evelyn Zohlen, FPA’s 2019 president, said in a statement.
“This research highlights the importance of our work as advisors as we help our clients address that stress while also taking the necessary steps to overcome stress in our personal lives.”
Julie Littlechild of Absolute Engagement conducted an online quantitative study in December and January of 336 investors and 313 financial advisors.
Effects of Stress
Half of investors in the study and 61% of advisors said they felt the biggest effects of stress were on their mood; 38% of investors and 56% of advisors cited personal relationships; and similar percentages cited health.