Survey: Financial planning not on many 2014 resolution lists
A new poll suggests that many Americans seem to have forgotten or stopped caring about the 2008 financial crisis. According to Allinanz Life Insurance Company's fifth annual New Year's Resolution Survey, only 16 percent of American adults said that they would actively engage in financial planning in 2014. This is less than half of the 33 percent who said they would prioritize finances in 2009. In addition, half of the individuals surveyed said that they were unsure if they should meet with a financial advisor, up from 2012's 44 percent.
The report also indicates that people may simply feel more financially stable now than they did five years ago. More of the survey participants said that they were saving more and spending less than they had in previous polls. Another reason why Americans are not planning for their financial futures is that they "don't make enough to worry about it, as 30 percent offered that response.
Katie Libbe, Allinaz's vice president of Consumer Insights, said in a press release that while she found improved saving habits encouraging, she noted that putting a few more dollars in the bank is no substitute for financial planning.
"Being more disciplined about spending and saving can certainly have a positive effect on financial stability, but that shouldn't be confused with financial planning," Libbe said in the statement. "People need to take the next step and turn better habits into longer term-planning."
To prepare your finances for 2014 and beyond, Libbe suggested that Americans do the following:
- Create an automatic savings plan
- Routinely review investments and reallocate when necessary
- Use a financial advisor.
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