Financial Advisor Confidence Outlook

The Financial Advisor Confidence Outlook (FACO) is a monthly index published on Financial Planning that surveys hundreds of financial advisors to understand their forward-looking perspective on the economy and plans for client asset allocations. This index provides a snapshot of the economic landscape and provides a peer view into client advising choices for the coming month.

In this index, advisors are asked to share their outlook on six core economic indicators: the overall economy, the global economic system, government policy, their asset allocation, their client's risk tolerance, and their practice performance. From these responses, a score is developed to take into account the balance of positive and negative outlooks. These scores are then averaged to create the overall outlook score: a value from -100 to 100 with -100 being the most pessimistic outlook possible, 0 being a neutral outlook, and 100 being the most optimistic outlook possible.

The FACO (June, 2023 – present) is a reimagined version of the Retirement Advisor Confidence Index (June, 2011 – May, 2023).

Clients’ retirement confidence tumbles to low for year

Worries about global instability and potential recession caused investors to slow their purchases of equities and debt-based securities.

Retirement spending, confidence rebound even as global concerns loom

“Better market, more aggressive,” one planner says. Still, others say their clients are putting more money into cash as they anticipate a market correction.

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Clients cutting back on retirement plan savings

Volatility and uncertainty over trade wars have battered investor confidence.

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Clients squirrel away more in retirement plans

Robust market conditions helped overcome short-term jitters, say retirement planners, but worries linger about a possible correction on the horizon.

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Index Clients are feeling positive — for now

An improved economic outlook and stock gains encouraged clients to go “back to investing and stick with their plans,” according to the latest Retirement Advisor Confidence Index.

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Client confidence soars as stock market finds footing

Advisors point to recency bias as investor worries recede and retirement contributions flow, according to the latest Retirement Advisor Confidence Index.

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Investors take stock — lots of stock

Clients strap in for a bumpy ride by buying equities as their planners’ strategies kick in, according to the latest Retirement Advisor Confidence Index.

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Risk tolerance crumbles as economic angst grows

“Shell-shocked” clients seek safety and review exposure with wealth managers.

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Client appetite for risk falters amid stock volatility

Advisors report shrinking confidence is pushing clients toward safer portfolios as advisory fees retreat along with AUM.

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Retirement contributions holding up despite volatility

Even as stock market swings have unsettled clients, they are investing more, not less. At the same time, a recent retreat in stock prices has dinged revenue for advisors.

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Client risk tolerance sinks amid fresh swings in stocks

.Advisors coach clients to exercise discipline while contributions to retirement plans remain healthy.

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