Jami Miscik Director | Morgan Stanley
Morgan Stanley Wealth Management has released findings from its recent study on financial planning, emphasizing the importance of having a professional financial plan. The research highlights that such plans not only help achieve long-term financial goals but also contribute to increased confidence and wellbeing during market fluctuations.
The survey involved over 1,000 affluent investors aged between 25 and 75. It explored how financial planning is integrated into their lives, defining "financial planning" as a comprehensive process involving a Financial Advisor who assesses a client's complete financial situation and aids in setting both short- and long-term goals.
Key insights from the study reveal that investors with a financial plan experience better mental wellbeing, higher confidence, and satisfaction. They worry less about saving (36% vs. 47% without a plan) and rate their investment value and financial health approximately 10% higher than those without a plan. These investors also describe their financial outlook as "prepared" and "hopeful."
Despite recognizing the benefits of early planning, only 28% of investors started at the beginning of their careers, with most waiting until retirement savings became necessary. This reveals a significant gap between ideal practices and reality.
The study identifies a knowledge confidence gap: while 53% of working individuals feel confident in their ability to save for retirement, only 36% are confident in knowing how to do so. A majority (66%) lack confidence in achieving long-term goals, with this figure being even higher among women (68%) and younger generations (70% Millennials, 72% Gen Z).
Although nearly all respondents acknowledge the importance of financial planning (97%), only 53% have an actual plan due to perceived barriers such as high costs (53%), self-sufficiency beliefs (44%), or lack of assets (38%).
Most respondents (74%) believe professional guidance is crucial for effective planning. Those working with Financial Advisors show greater engagement; clients with plans meet more frequently with advisors (51% vs. 25%) and review advisor communications more actively (37% vs. 20%).
Anthea Tjuanakis Cox, Head of Financial Planning at Morgan Stanley, stated: “Financial planning matters at every stage of life and level of wealth. Our research confirms that a professionally created plan offers a roadmap to achieve financial goals—but perhaps the most compelling insight for us in this data is the positive impact it can also have on one’s life and sense of wellbeing.”
Morgan Stanley's approach to financial planning is customizable according to each client's needs, considering factors like time horizons and risk tolerance.
The study was conducted between September 27 and October 11, 2024, surveying U.S. adults with household liquid assets of $250,000 or more.
Morgan Stanley Wealth Management provides various services including brokerage, investment advisory services, cash management, lending products, annuities, insurance services, retirement services, and trust services.
For further information about Morgan Stanley's offerings or the study itself, visit their website.