The “2019 Trends in Investing Survey” was published earlier this month in the Journal of Financial Planning. Our Money Man, Certified Financial Planner Paul Fain, joins us now to review the survey’s findings.
ACCORDING TO THE SURVEY, WHAT ARE FINANCIAL ADVISERS RECOMMENDING TO THEIR INVESTMENT CLIENTS?
88% Exchange-Traded Funds (increased from 40 percent of advisers in 2006)
80% Cash/Money Market Funds
70% Mutual Funds
WHICH INVESTMENT VEHICLES ARE EXPECTED TO BE USED MORE FREQUENTLY OVER THE NEXT 12 MONTHS?
45% ETF
25% Cash (evidence of caution)
19% ESG
WHICH TOPICS HAVE CLIENTS INQUIRED ABOUT THE MOST THIS YEAR:
- Effects of volatility on their portfolio
- Investing in marijuana or cannabis stocks/companies
- Effects of tax reform (Tax Cuts and Jobs Act) on their portfolio
- Fees and other costs of investments
- Investing in ESG/socially responsible investing
- Investing in cryptocurrencies (only 1% of Advisers think it is a viable investment option)
WHAT IS THE ECONOMIC OUTLOOK FOR THE REST OF THE YEAR?
Results show that advisers are:
- Somewhat bullish for the next six months,
- Uptick in a bearish outlook for the next two years.
Remember to always stay in contact with your financial planner so you are informed of your financial plan and timeline.
FAST MARKET FACT: Returns Forecast
12 Month Forecast
- Equity Returns: 5.8%
- Fixed-Income Returns: 2.9%
QUESTION FOR OUR MONEYMAN?
If you have any questions about the 2019 Trends in Investing Survey or other general questions about financial planning, contact our Knoxville financial planner Paul Fain or send them directly to Paul@assetplanningcorp.com!
