Advisors are feeling groovy and in what’s really good news, much of that positivity is the result of their views on various client-specific issues, not simply because they pathways to growth for their practices.

Practice growth and thriving clients are joined at the hip so it’s good for all involved parties that are advisors are sounding ebullient tones about the future. Those good vibes are highlighted in the first edition of the U. S. News-AdvisorFinder "Advisor Outlook Index,” which surveyed U. S. advisors from July 29 through Aug. 21 on a variety of topics, including artificial intelligence, overall market views, retirement issues and taxes.

Specific percentages and views on the issues will follow, but in simple terms, the fact that advisors are sanguine is noteworthy for multiple reasons. First, these are unusual times from the perspectives of domestic and trade policy. On a related note, while the S&P 500 is rising, the broader economy isn’t great. Inflation is high and job growth is stagnant.

Second, retirement is still viewed as a crisis situation for many Americans. Add to that, many of them, including advisors’ clients, are fretting about the state of Social Security and whether they’ll be getting the benefits they paid for. So with all that in mind, let’s examine why advisors are chipper.

Retirement Positivity? Believe It.

As noted above, there’s no shortage of clients that wish they had started saving for retirement sooner and/or are Social Security worry warts.

Depending on the study or survey in question, Americans’ feelings about their retirement savings are positive, negative or somewhere in between. The split decision makes sense because while high interest rates and inflation affect all investors, those with substantial assets and those that made big strides in terms of bolstering retirement savings in recent years are likely more optimistic. Even the aforementioned concerns, retirement confidence is being shored up.

“Nearly 72% of advisors say clients are better positioned to reach retirement goals. Despite concerns about the future of Social Security and the volatility of bond markets, advisors remain bullish on client retirement preparations,” notes U. S. News.

Interestingly, there’s some immediacy to that 72% because it reflects advisors’ views regarding clients’ retirement preparedness over the next 12 months. In fact, 15% of advisors polled said they expect their clients will feel significantly better and more prepared regarding retirement planning over the next year.

Talking Taxes

Another reason for advisors’ positive outlooks is the tax climate. Advisors and clients alike know that taxes are drags on portfolio performance and any mitigation to that effect is good mitigation.

It’s a certainty that taxes aren’t going anywhere, but half of advisors queried told U. S. News that recent changes to domestic tax policy will result in “much lighter” or “somewhat lighter” tax burdens over the next year.

“The One Big Beautiful Bill Act will impact taxpayers in the coming year. Major provisions of this tax reform include permanently extending rates and brackets associated with the 2017 Republican tax cuts, the pullback of many green energy tax credits, a special deduction for seniors, and tax exemptions for overtime pay and tips,” notes U. S. News.