"Americans gloomy over finances - Economics

Americans have turned gloomy over their financial future and the institutions that are supposed to look after them, according to a survey from the Financial Planning Association (FPA), Atlanta, Ga. In a nationwide survey, 63% of Americans said they do not feel that the U.S.'s financial, government, and regulatory systems "protect people like me" against investment losses and accounting fraud.

The survey found that 58% are only "somewhat" or "not very" confident in their financial future, while 31% seem to have given up entirely, saying they do not believe they will ever again feel confident in their financial prospects. "These findings are profound. Not only are many Americans feeling ill when it comes to their finances, but in many cases, the patient has given up hope," stresses FPA president Bob Barry. "There's not much good news here, especially for our financial institutions."

Significantly fewer women expressed confidence in their financial future: 34% said they were "very confident." compared with 46% of man. Among women "somewhat" or "not very" confident about the future, 34% did not believe they would ever be confident in their finances, compared to 27% of such men.

Lack of trust in financial institutions and regulators was widespread among regions, sexes, and races. The most-likely group to trust these institutions was adults under 25; 43% of them felt the system protects people like themselves, while 48% did not. Those 45-54 years old were most cynical; 71% did not express faith in financial institutions and regulators.

Stockbrokers fared particularly poorly in public opinion. When respondents rated their impressions of various financial professionals, brokers finished dead last, trailing even the oft-maligned insurance salesman. Accountants fared best on the impression scale, followed by personal bankers and financial planners. Insurance agents, estate lawyers, and stockbrokers were held in the least regard.

"This survey should be a clear call to those of us in the financial planning community," Barry cautions. "Americans' finances have taken a hit, and they're not sure whom to trust. It falls to us to make the case for ethical, comprehensive financial planning--to provide for our clients' life needs--especially in disappointing economic times."

COPYRIGHT 2002 Society for the Advancement of Education
COPYRIGHT 2002 Gale Group