PHILADELPHIA-Financial advisers, have you and your retired clients been fretful since President Donald Trump's election, or are you encouraged and optimistic about the future?
If the answer is both, you've got plenty of company.
A new American College of Financial Services survey asked whether advisers were concerned about their clients' retirement security postelection. More than half, 53 percent, reported that the election results have increased their concerns. Meanwhile, 23 percent said the election has had no impact, and 24 percent believe the election improved the outlook for their clients' retirement security.
Among clients, the leading concerns are potential changes to health care (27 percent) and Social Security (22 percent), according to the survey by the American College in Bryn Mawr, Pa., which polled 419 advisers in January.
Rep. Mick Mulvaney, R-S.C., Trump's pick to run the Office of Management and Budget, said last month that he would advocate for reducing spending on Social Security and Medicare.
Clients are "scared that Trump will make changes to those, because it wasn't part of his campaign," said David Littell, a professor at the American College.
On the other hand, many retirees are more optimistic because they expect lower tax rates might stimulate the economy.
"No matter who's the president and the administration, be focused on the positive messages about lower taxes, especially for the next generation. Tax rates are going to go down and the tax code made simpler. The aggregate effect is people will have more control of their financial resources," said Gary Miller, founder and managing partner of Miller Financial Group in Spring House, Pa.
What about the stock market? More than half the advisers polled, 53 percent, told their clients to stay the course.
Half of advisers (50 percent) said they were rebalancing their retirement clients' investment mix to lock in gains or reduce equities.
Forty percent of advisers were taking profits in equities off the table for their retired clients and buying income annuities.
A very low percentage of advisers, 5 percent, encouraged their retired clients to invest more heavily in the stock market.
About 60 percent of advisers expect more volatility.
"Regardless of what is ahead during this new administration, the bottom line is clear," Littell said. "Advisers need to take this opportunity to sit down, talk with their clients about their current retirement plan."