The changing terrain: Post-election financial decisions
Following the November presidential election, First Command Financial Services surveyed a group of middle-class military and general population families* to find out two things about their personal financial decisions:
- Did the election change the riskiness of their finances/investments? and
- What actions (if any) have they taken as a result of the election?
Keep in mind this is only one month’s worth of survey data, and First Command will continue to ask this question in its monthly Financial Behaviors Index® survey.
Regarding the riskiness of finances and investments, military families were nearly even in their responses, with 37 percent indicating they would be more risky, 30 percent saying less risky and 33 percent saying no change. More than half of general population respondents said they were making no changes, while one-third indicated they would be less risky.
Specific actions already being taken by military families are to increase the amount they are saving (selected by 32 percent), cut back on everyday spending (31 percent), and work with a financial planner and move investments to cash (both selected by 25 percent). Twenty-five percent also indicating they were not doing anything. Two-thirds of general population families indicated they have not taken any action.
Although the election has had a greater impact on the personal financial decisions of military families than it has on general population families, the real story to come will be in future trends, when these families have had more time to learn about the incoming administration’s policy plans and after inauguration day.
*Commissioned officers and senior NCOs in pay grades E-5 and above and U.S. consumers aged 25 to 70 with household incomes of at least $50,000 surveyed via the First Command Financial Behaviors Index®.
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