12/13/2023 0 Comments American optimism![]() ![]() The poll asked investors to rank and describe how much progress they have made on six financial-oriented life goals. ![]() Additionally, Black and African American investors reported similar progress with respect to other financial goals. Looking at Black and African American investors’ long-term financial health, nearly all (87%) Black and African American investors reported having a retirement savings plan (similar to 89% among all investors). “While certain communities continue to be disproportionately impacted by COVID-19, I believe the significantly higher optimism of Black and African American investors signals that they see a light at the end of the tunnel,” said David Dawkins, director of Diverse Client Segments at Wells Fargo Advisors.īlack and African American investors reported similar progress in reaching financial life goals Another 18% said they used it to make a major purchase of some kind while 4% used it to help other family members. This was followed by 21% saying they used it to pay for a major expense, such as medical bills, and 16% said to help pay for their normal daily expenses. Nine percent of all investors took such a loan and among this group, the primary reason they cited for tapping their retirement funds was to pay off debt (35%). Nevertheless, seven in 10 reported being able to save a little (53%) or a lot (17%).įifteen percent of Black and African American investors who have a retirement plan reported taking a loan from their 401(k) or similar type of personal retirement plan since the start of the pandemic. Even so, one in three (31%) still said that the pandemic has had a negative impact on their finances.Ībout one in six Black and African American investors (17%) said that their current income equals their expenses and one in eight reported they are either drawing on savings (10%) or running into debt (3%). While Black and African American investors reported higher optimism, some cited negative impact on financesĭespite the downtick in overall investor optimism, Black and African American investors’ overall optimism score was +101, significantly higher than the national average. This oversample was designed to allow for robust analysis of Black and African American investors’ views on a range of financial topics. 8-16 with 1,536 investors, including 573 Black and African American investors weighted to their correct proportion of the U.S. The first quarter poll was conducted Feb. adults with $10,000 or more in investible assets. The Wells Fargo/Gallup Investor and Retirement Optimism Index included U.S. “The COVID-19 pandemic and ensuing economic and market downturn in 2020 tested investors’ resolve, but patience and resiliency were key in helping them weather the ongoing storm,” said Veronica Willis, investment strategy analyst for Wells Fargo Investment Institute. At the same time, investors’ outlooks for reaching their investment goals were steady. Slight declines were also seen in their positive forecasts for unemployment, the stock market and economic growth. Within the index, investors’ 12-month outlook for inflation dropped the most this quarter. ![]() ![]() The dip in optimism this quarter was in part due to investors being less optimistic about their household income. This reversed much of the improvement seen in the fourth quarter as the markets surged following positive news about COVID-19 vaccine trials. The Wells Fargo/Gallup Investor and Retirement Optimism Index fell to +26, down 16 points from +42 in Q4. Wells Fargo/Gallup Investor and Retirement Optimism Index (Photo: Wells Fargo) ![]()
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