U.S. Presidential Election Leading Cause of Investors Losing Sight of Savings and Investment Strategies, finds Edward Jones

ST. LOUIS, Aug. 8, 2012 /PRNewswire/ -- In the next six months, 90 percent of Americans plan to make changes to their savings and investment strategies, according to a survey released today by financial-services firm Edward Jones, with the U.S. Presidential Election most often cited as the reason.

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The survey of 1,010 respondents, conducted by Opinion Research Corporation, examined which ongoing domestic and international issues were most likely to impact investment and savings decisions in the next six months.

The U.S. presidential election and healthcare costs were the two issues most likely to affect savings and investing decisions, with 39 percent and 30 percent of Americans pointing to them, respectively. Another 21 percent of respondents cited ongoing European and global economic issues. Only five percent of savers and investors plan to stay the course in that time period.

"With the U.S. presidential election and global economic issues continuing to make headlines, it's easy for nervous investors to attempt to chase positive returns by making rash changes to their portfolios," said Edward Jones' Investment Strategist Kate Warne. "More than ever, we are focused on reminding our clients and investors that the market and economy are more powerful forces than politics.  Despite the political uncertainty surrounding future policy changes, it's important to avoid making unnecessary changes that could mean missing out on the potential for long-term gains."

An Age of Change
Age was not a factor in investors' plans to change their investing strategies in the next six months. Across the board, nearly all plan to make a change. The issues that would be most important in their decision to change strategies varied, however.

• For Americans between 35 and 44 years old, and those 65 and over, the U.S. presidential election will have the greatest impact on the changes they make to their investment strategies, with 46 percent and 45 percent of those groups indicating so, respectively.
• Respondents between 18 and 34, however, were less concerned with the U.S. election and instead pointed to healthcare costs as the factor most important for their investment decisions (35 percent).

Gender Issues
As with age, gender played a minor role in respondents' likeliness to change strategies in the next six months, with 91 percent of men and 89 percent of women indicating they plan to make changes.

• Men (40 percent) and women (38 percent) were almost equally likely to point to the U.S. presidential election as having the greatest impact on their investment strategies in the next six months.
• Women were much more likely to identify healthcare costs as the issue that will affect their decisions (36 percent), while less than one-quarter (24 percent) of men chose the option.
• While ongoing European and global economic issues were ranked as the third biggest issue altering investment decisions overall, men and women were divided on their sentiment. Men were much more likely to see it as a significant factor (27 percent) than their female counterparts (15 percent).

"When you're contemplating investment changes, it may be helpful to discuss them with a financial advisor," said Investment Strategist Kate Warne. "Today's uncertain environment and volatile markets may mean you need to re-balance your portfolio.  In addition, there may be changes you need to make to address higher healthcare costs or taxes.  But don't make changes if you're reacting emotionally to the short-term hurdles ahead. A long-term strategy can put you in a better position as you work toward your long-term financial goals."  

Additional Noteworthy Findings

• Those living in the western part of the country were much more likely to point to concerns over European and global economic issues than the general population (30 percent vs. 21 percent) and Midwesterners were the least likely (16 percent).
• The most affluent respondents (those making $100,000 or more a year) are the most likely to change their savings or investment strategies in the next six months (96 percent).
• Among respondents living in households with incomes between $35,000 and $50,000, healthcare costs ranked as the top factor impacting investment decisions.

About Edward Jones

Edward Jones provides financial services for individual investors in the United States and, through its affiliate, in Canada. Every aspect of the firm's business, from the types of investment options offered to the location of branch offices, is designed to cater to individual investors in the communities in which they live and work. The firm's 12,000-plus financial advisors work directly with nearly 7 million clients to understand their personal goals - from college savings to retirement - and create long-term investment solutions that emphasize a well-balanced portfolio and a buy-and-hold strategy. Edward Jones embraces the importance of building long-term, face-to-face relationships with clients, helping them to understand and make sense of the investment solutions available today.

Edward Jones, which ranked No. 5 on FORTUNE magazine's "100 Best Companies to Work For 2012," is headquartered in St. Louis. The Edward Jones Web site is located at http://www.edwardjones.com and its recruiting Web site is www.careers.edwardjones.com. Member SIPC.

* Survey was based on 1,010 telephone interviews of U.S. adults conducted between the dates of July 12-15, 2012. The margin of error was +/-3%. 

SOURCE Edward Jones