Americans are down on the national economy but slightly more upbeat about their own personal economy, particularly when they have a financial plan in place, according to a recent study from the Certified Financial Planner Board of Standards Inc.
The findings from the survey of 1,011 adults, conducted earlier this month in tandem with KRC Research, showed many folks are still licking their financial wounds from the recent recession. That's not surprising, as various other polls found large numbers of Americans had their wallets dented by the downturn and their faith in the nation's economy--as well as its financial institutions--diminished.
Specifically, 59% of respondents said they aren't confident the economy will rebound within the next 12 months. Of the 41% who are optimistic, only 8% are very confident than an economic rebound is nigh.
People with a financial plan in place are more confident about a recovery than those without a plan. In that vein, people who have a financial plan are more inclined to feel their personal finances will improve within the next year (40% for those with a plan versus 29% for those without).
According to the survey, 86% of respondents agreed with the notion that everyone should have a financial plan. And 79% said they have a plan in place. Nonetheless, less than half of the respondents have a formal plan in place--46% said they just have a plan in their head, and 11% just have notes and ideas.
"Most Americans appear to be taking a do-it-yourself approach to financial planning, with only 36% of respondents stating that they're currently working with a financial planner or have done so in the past," Eleanor Blayney, CFP Board's consumer advocate, said during a media call on the survey results. She added the D-I-Yers aren't convinced this is the best way to go, and that the survey showed many people acknowledge they're not up to the task of managing their own financial planning.
"This suggests some apprehension or anxiety on the part of respondents when it comes to the complexities of setting and achieving financial goals," Blayney said.
But Blayney acknowledged that the cost of getting professional, competent financial planning help might deter some people from seeking help even when they know they need it. "Cost is a factor, but what this is telling us is that the CFP profession needs to communicate our value more effectively to consumers," she said.